Hands On Real Estate Investing

Do you have a tenant who is having trouble paying the rent during the Coronavirus COVID-19 pandemic? The CARES Act, passed by Congress and signed by the President, gives tenants who are renting properties financed by Freddie Mac and Fannie Mae an extra 90 days to pay their rent without fear of eviction. Many states have passed laws prohibiting evictions during the pandemic! What’s a landlord to do? SELL! How do you get rid of the tenant? See below …

We just experienced the same situation. The tenant was unable to pay the rent and state/federal laws prohibited us from filing for eviction. We opened up the lines of communication with the tenant, and we let the tenant know that we have a mortgage and HOA monthly fees to pay on the rental property. We explained that we could lose the property if we didn’t do something to ease the financial difficulty. This began a negotiation that lasted for a few weeks. The tenant contacted the county’s Office of Consumer Protection, and fortunately the investigator acted as a mediary. It helped all parties to maintain a professional and unemotional negotiation. The tenant asked for $1,000 in moving costs. We offered to pay $500 in moving costs. The tenant counter-offered $750 in moving costs, and we accepted. The next issue was the move-out date for the tenants, who proposed 90 days to remain in the property before moving out. Heck NO! We proposed that the tenants move in 6 weeks. Our offer stayed on the table for a few weeks while the tenant searched for new housing. We were also concerned about the condition of the property, but the tenants had only been renting for 5 months so we hoped that the property was still in good condition. To avoid contracting COVID-19, we conducted a virtual inspection of the property by asking the tenant to send photos and videos of the interior. Ultimately, the tenant moved out 8 weeks after our initial conversation, and we returned the full security deposit of $1,995 and $750 in moving costs. Our offer to pay moving costs really sweetened the pot, so we suggest if you want a tenant to move without a fuss, sweeten the pot with a nice offer to pay moving costs!

What successful tactics have you used to “encourage” a tenant to move? Please share your experience below:

1. Enter your comment below
2. Tweet us on Twitter
3. Subscribe to our YouTube channel
4. Follow us on Instagram
5. Pin us on Pinterest
6. Follow us on Google+

The opinions expressed herein are solely those of the Author/WebMaster. Before taking any action, please consult your real estate, financial, and legal advisors.