The Coronavirus is here and the reaction is unprecedented. Large gatherings are being canceled (What am I going to do without March Madness?), supplies are being hoarded and people are social distancing. Whether all of this reaction is justified or not remains to be seen but what we can say is that the impacts will be wide ranging. We landlords will not be immune so to speak from these impacts. Have you considered what some of these impacts to your business might be? Have you considered how you might handle them?
Te impacts right now are few. The effects of the virus and the public health reaction to it are just beginning here in the US. People are just now beginning to travel less, eat out less frequently and generally close themselves off and stay home. It may seem like a vacation to many right now but in a couple of weeks things are likely going to feel very different.
In the coming weeks, we will all be trying to avoid unnecessary contact with others in order to keep the spread of the virus to a minimum. Consider what this means for your landlording business. It means that some of your tenants will likely loose sources of income. Think of those that work in restaurants or in other service jobs such as driving for Uber. They may very well take a significant hit to their pocketbooks and the resources they have will be stretched thin. Many may be able to make it through this month but what about the next?
It is likely you will get calls from tenants regarding late rent payments because of this lost income. I have written before about how some tenants are being squeezed. The potential loss of income in the coming weeks means that tenants may have to make some difficult choices between food, gas and rent. What should your reaction be?
If they have been otherwise good tenants I suggest working with them. This epidemic and the reaction to it is like nothing we have seen in our lifetime. But, it will pass. Thus, if you can, it might be best to work out a payment plan with your struggling tenants. Discuss with them what they can and cannot do right now and develop a written plan to get them over the hump. Most will appreciate it and will follow through. And besides, where are you going to find new tenants now anyway? No one is likely going to be out and about looking for a new place to live.
Repairs and maintenance are also likely to suffer a bit as well. Everyone will likely want to keep their distance or may be sick. Major rehab jobs where there is little contact with others might be able to keep going but tenants may be worried about people coming into their homes. So perhaps it is best to put off anything non-essential for a while.
What can we landlords do right now to help get through this? If you are not doing so already, go virtual with your tenants and contractors. Connect with everyone as remotely as you can. Thankfully our modern day phones and property management systems make that pretty easy. There really is no need for contact, other than showings, anymore. Use this time as an experiment to see how you can better streamline your business using virtual technology and take yourself out of some of the day to day hustle and bustle.
Most of all, be patient, as this too shall pass. Be patient with your tenants. Be patient with your employees and contractors. Everyone is being impacted by this crisis. Give people time to recover and get back on their feet again. There is really no reason, for example, to pull out the eviction hammer right now. You may very well not be able to file anyway as I see that some courts are closing down. Plus, other jurisdictions are talking about enacting a moratorium on evictions. Do not fuel those flames. Patience is the name of the game right now.
Ask for patience as well. Everyone and every business is going to feel the effects of this virus. Hopefully things will blow over pretty quickly. Until they do, repairs and other business needs may not get done as quickly. Ask everyone for patience until the virus passes. Let folks know that you are working and doing your best but things are a bit uncertain. Most will understand, but you have to communicate and let them know.
What are you doing with your landlording business to get through the Coronavirus? How has it affected your business, if at all? Let us know with a comment.
Kevin Perk is the founder and publisher of Smarterlandlording.com. He is the author of Advice From Experience To New Real Estate Investors. Subscribe to Smarterlandlording here. Contact Kevin here.
Great and wise comments Kevin. This panic is affecting everyone and patience and some firm kindness is the call for the day.