Remember During Covid 19: Rent Deferment is NOT the same as Free Rent
Like you, I’m an owner of income producing properties (albeit apartments). I thought it may be helpful if I shared with you a letter that I drafted to my tenants who have not yet paid rent.
It’s safe to assume that we all understand that both we and our tenants are in uncharted territory with regards to the crisis. Many of our tenants are unemployed and do not have the ability to pay rent. As you know, all nonessential businesses have been ordered to remain closed due to Covid 19 thereby creating financial urgency for the tenants in your properties as well.
As I stated in a prior Media Realty Survival Guide post, we have the ability to do something special for our tenants by helping them weather the storm. Rent deferment may be just the right tool to assist our tenants. However, that doesn’t mean providing tenants with free rent.
As property owners we are still responsible for providing rental housing or commercial space consistent with our lease agreements. Currently, I am not aware of any relief being provided by utility companies or government agencies to owners of income properties even though we must continue to provide maintenance services, paying utilities and other related property expenses such as taxes and insurance.
Follow the link below to download the document. Its saved in Word so its easy to modify to your specific needs.
Click here to down Letter to Tenants; Deferred rent is not free rent
It would be helpful if anybody who had information to share that is beneficial to the mid core community and our tenants, please feel free to email it to me and I’ll be happy to disseminate it.
Looking forward to the day when it’s business as usual. Truth be told I’m getting a little stir crazy. Until then I hope you are all well and safe.
- Peter Dacko