Remember During Covid 19: Rent Deferment is NOT the same as Free Rent - Download our Rent Deferment Letter
If you're reading this article, you may be an owner of residential investment properties. Like you, I’m an owner of income producing properties. In my case, they're apartments. Since so many landlords are against the wall due to eviction moratoriums, I thought it may be helpful if I shared with you my rent deferment letter. I drafted this and gave it to my tenants who have not yet paid rent.
It's important to remember that both we and our tenants are in uncharted territory with regards to the Covid-19 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. This move has likely created financial urgency for the tenants in your properties.
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 the right tool to assist our tenants during these unprecedented times. However, that doesn’t mean providing tenants with free rent. My rent deferment letter makes this distinction clear while offering a helping hand to my tenants.
It's important to remind our tenants that, 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. It is saved as a Word doc so its easy to modify to your specific needs.
I hope this rent deferral letter is helpful to you. I know that I'm looking forward to the day when we return business as usual. Until then I hope you are all well and safe.
- Peter Dacko