As the expert in Washington D.C. association management, we know that condominium owners are no less at risk than their single-family counterparts when it comes to the impact of the COVID-19 crisis on their residents. Finances could become stretched thin if your renters haven't had the benefit of working from home these last few weeks.
The Washington D.C. area has long been sheltered and bolstered by an influx of government work. However, during social distancing and shutdowns, paying down expenses has become an entirely new challenge that (in some cases) has led to a loss of income. If your residents are struggling to pay the May rent that was due, you need to be preparing now for how this will impact you as the property owner.
Even in a crisis, landlords must continue to operate under the rules of lease agreements between you and your renters to continue providing your residents with a safe home. Without rental income, you cannot cover your overhead for owning and operating a rental property. Here's what property investors can learn from an expert in Washington D.C. association management when your renters are withholding rent.
As a note: This post is not a substitute for proper legal counsel. When in doubt, it's best to reach out to your Washington D.C. property management partner or obtain guidance from a skilled attorney.
Making notes and tracking conversations can be tedious work—but it's critical when you own even a single investment property. From the lease agreement to keeping records about conversations, notices, requests, and other communications, it's crucial to document everything that takes place with a property and renter.
If you're not a note-taker—or if you don't have a documentation system in place—now is the time to start. As your portfolio grows, thorough documentation is an excellent business practice across multiple units and provides a professional touch. Creating long-lasting habits and systems for tracking your documentation will ensure you stick to your new paperwork policies.
The following are a few of the essentials you should already be keeping track of:
We hope a delay in rent doesn't result in penalties or eviction for your renters, but when you keep track of everything that takes place between you and your residents, you have a documented case for future action.
An economic crisis can make landlords feel like the villain when expecting the rent to come in on time. You know your renters might be struggling—but without their rental payments, you'll be in financial difficulty, too.
As a Washington D.C. association management professional, we know that your approach and tone in any given situation has considerable mileage. Remember that:
However, it's important to temper your role as the rule enforcer with a touch of compassion. You have an opportunity to create stronger landlord-renter relationships during a crisis when you choose a kind approach to encouraging your tenants to prioritize their rental payment.
Compassion and flexibility help your renters not only realize that you see them as more than a rent check, but it also humanizes you as the landlord.
We've learned as a Washington D.C. association management provider that flexibility improves resident satisfaction. However, we know that large-scale adaptability isn't necessarily possible for solo property owners during a financial crisis. That said, there are options available even to a landlord with a single property.
One of the best ways to adapt to a crisis is to help your renters help themselves:
Make sure your cash flow can handle a reduction in rent for a short time. However, offering some relief now to help your residents pay in full throughout the remainder of the lease can go along way in building goodwill. For many renters, returning to work is just a waiting game at this point.
If you still can't collect rent from a tenant, despite your efforts and offers to accommodate their situation, it's appropriate to start the eviction process after a crisis ends. Currently, there is a stay on filing for eviction enacted by the D.C. Council. Collect the documentation we mentioned earlier and work with your property manager and legal advisor to proceed safely when you are allowed to do so.
At EJF Real Estate Services, one of our points of pride as a Washington D.C. association management provider is that we have over 25 years of experience providing consistent, excellent service. However, we don't simply manage associations! We know that many landlords right now are feeling pressured by the continued COVID-19 crisis.
This is why we also offer a compassionate approach to single-family and small apartment management. We know that our property owners need rental payments to cover expenses—so we put together our Collecting Rent in a Crisis Handbook just for you. Download your copy for free today, and let's rebuild together.