5 Tips for Collecting Rent During Coronavirus Pandemic

Times have certainly changed at the very least, immediate future. Every morning we hear negative news, instead of thinking about something positive. You may have heard of big companies laying off their or furloughing employees. With all the negativity going all around the world. There is one major issue, which people are talking about, the landlord and tenant relationship. But people forget one thing every problem has a solution.

So here we are giving the landlords some tips & tricks to collect the rent.

1.  Give discounts to the tenants who are paying rent on time. This option is best for the current situation. So that landlord can earn the income, and the tenant also gets relief from the burden. In this, the tenant will not think to go back to their homes, and they can still work from the current place. And if the tenant loses their job, then they can use their savings to pay the rent amount.

2.  Check out the government laws and policies to deal with the tenant. If your tenant is stubborn and not cooperating with the situation. If your tenant is reluctant to not pay even after some months. If you are facing any of these issues, then you must take legal advice, or you can ask your tenant to vacant your place. 

3.  Allow the tenant to use their security deposit as rent. This is the best option for both the landlord and the tenant. The landlord can use the security deposit as rent, and the tenant does not have to pay anything, at least for a month. If the tenant does not have the job, as many of them are not working now due to unemployment. Then using a security amount as rent is quite an attractive option.

4.  Take the partial or half amount of rent from tenants. If the tenant failed to pay the entire amount of rent, then the landlord can give the option to pay half the rent. It’s better to get something than to get nothing in hand. Also, you can ask the tenant to pay you later if it is not urgent by signing the legal documents. 

5.  Give your space to the government for using it as an isolation ward for coronavirus patients. Because of rent, your tenant has to vacate the place. Now you can give space to the government. Like if you own a hostel or flats or a building. Then the government will pay you a fixed amount. In this way, you help two parties. First yourself and other the government. Without realizing it, you are already contributing to society. 

These tips can help you collect rent from your tenants in this situation. Give your tenants some time and find distinct ways to manage the rent. I hope these tips are fruitful for you. Have you had to implemented any of these practices in your real estate business?

Have you considered investing passively in multifamily? Do know you there are 5 reasons why an investor chooses to invest in multifamily?

Disclaimer: The views and opinions expressed in this blog are provided for informational purposes only, and should not be interpreted as an offer to buy or sell any investment or course of action.