This one’s important.
As a real estate investor managing properties, you’re stressed about your tenant’s ability to pay you rent in a time of growing economic uncertainty.
And here’s the thing: your renters are stressed about paying you rent, too.
Some of them may have been laid off, furloughed, or lost hours or shifts.
My approach has been transparency and honesty.
As soon as things in the economy got rocky and as I read the latest jobs report I decided it was time to speak with my tenants.
So I texted each tenant, asked how they were doing, and asked if they needed to discuss alternative rent arrangements if they were facing any income changes due to the pandemic. If they weren’t facing any hardship now, I told them to let me know if they ever did so we could discuss an arrangement that worked for them.
Why did I do this?
Being a real estate investor is hard work. And part of that hard work is being sure to mitigate risk.
If there was a risk of having a roofing issue, I’d opt to repair that roof today versus risk a leak in the future.
But hey, that’s just my business model and personal philosophy.
Checking with my tenants to be sure they are able to pay rent during this extra-ordinary time is important to me. I’d rather work with tenants to discuss a payment plan now instead of having them surprise me with an issue when rent is due or try to exit the lease. This is part of how I mitigate risk for my rentals.
So figure out what you can do, work with your tenants, and try to look ahead at potentials risks now.