COVID-19 Information for Landlords and Investors
March 30, 2020 | Poem Turner
What a crazy couple of weeks we’ve had.
I wanted to reach out and share a few pieces of relevant information that will be of value to you as homeowners, investors and landlords. If your inbox is like mine, you’ve been bombarded with information the last few days; I’ll keep this as brief and to the point as possible.
1. Mortgage grace periods. This is a developing situation. As of today, there are provisions in California, New Jersey, New York as well as FHA/Freddie Mac/Fannie Mae, VA, and a number of national banks for mortgage relief for those affected by COVID-19. There does not seem to be a consensus on loans for personal residences vs investment properties so I would encourage you to call based on your specific situation.
2.Communicating with tenants – April 1st is right around the corner. If you haven’t already, reach out proactively and connect with your tenants about expectations and realities. Across most of the country evictions are frozen, and understandably; however most mortgages have not. You don’t need to explain your position to your tenants, but you can ensure you have a line of communication with them.
Of my tenants, some are on leave with pay or are working remotely, others are medical professionals, while others have been deemed ‘non-essential’ by local government and are facing a difficult next few months. Some options we’re considering include amortizing the next month or two of rent over the life of the lease, or allowing them to break the lease with no penalty.
Linked here is a copy of what I’ve sent to our tenants. I also have a follow-up email drafted depending on their response with information to local resources and assistance. I’m happy to help you identify resources where you own rentals.
3. Paycheck Protection Loans and the CARES Act – If you are considering the need for a business loan via the recent Coronavirus Relief Bill that passed as the CARES Act, my colleague Evan Kirkpatrick has a brief write-up about the benefits and implications. Read here and feel free to share.
I am here for you as a resource and available to help you find the answer to any question during this tumultuous time. Please don’t hesitate to reach out, or let me know how I can assist you.