My mom's house is coming up for tenant renewal at the end of June, so I have to present a renewal offer. It goes towards her nursing home bill.
Getting someone signed up, for as long as possible, seems like a good idea. I predict a lot of AirBnB properties going on the market, not only as long term rentals but firesale priced by speculators who have no equity built up, no cash in the bank, and no business. I know that landlord receipts have dropped because tenants, at least at the low end of the rental market, don't even have $400 in the bank. etc.
The worrying issue is that once a long contract is done, they are immune from eviction proceedings "for the duration."
Since Mom is not a "qualified" real estate business, there is no relief for her from the SBA loan program etc. AFAIK.
I could offer a shorter term, say 6 months at the current rent.
OTOH a short term contract gives them more chance to find a really cheap property and move out without penalty, right when cash-strapped property owners are flooding the market... Has the industry produced any projections about that sort of thing?
I've asked my PM to review their income situation again. Part of it is a home based service business which I'm sure has crashed. So what if they don't quite make the numbers on the remaining income?
Has the rental industry started to think about including contract terms for deferring payments specifically wrt the pandemic situation?
Maybe bumping the rent, but allowing for deferment of a certain amount with no interest.
AFAIK the mortgage industry is allowing deferral, but the interest still accrues.
Have to make a guess between deflation and inflation over the next 2 years. A 24 month contract at the current rent could make or lose money on that. OTOH a vacant house in July might stay empty for... Any industry insight on that? Washington DC market.
Best guess might be to try for 24 months at current rent, or the first 12 at a discount if they have lost income + the next 12 at a higher rent. Probably a wash for me as long as no significant inflation, since the theoretical interest value I would forego is pretty low.
The PM's initial idea was to NOT ask for the usual small bump, and keep the rent the same.
Getting someone signed up, for as long as possible, seems like a good idea. I predict a lot of AirBnB properties going on the market, not only as long term rentals but firesale priced by speculators who have no equity built up, no cash in the bank, and no business. I know that landlord receipts have dropped because tenants, at least at the low end of the rental market, don't even have $400 in the bank. etc.
The worrying issue is that once a long contract is done, they are immune from eviction proceedings "for the duration."
Since Mom is not a "qualified" real estate business, there is no relief for her from the SBA loan program etc. AFAIK.
I could offer a shorter term, say 6 months at the current rent.
OTOH a short term contract gives them more chance to find a really cheap property and move out without penalty, right when cash-strapped property owners are flooding the market... Has the industry produced any projections about that sort of thing?
I've asked my PM to review their income situation again. Part of it is a home based service business which I'm sure has crashed. So what if they don't quite make the numbers on the remaining income?
Has the rental industry started to think about including contract terms for deferring payments specifically wrt the pandemic situation?
Maybe bumping the rent, but allowing for deferment of a certain amount with no interest.
AFAIK the mortgage industry is allowing deferral, but the interest still accrues.
Have to make a guess between deflation and inflation over the next 2 years. A 24 month contract at the current rent could make or lose money on that. OTOH a vacant house in July might stay empty for... Any industry insight on that? Washington DC market.
Best guess might be to try for 24 months at current rent, or the first 12 at a discount if they have lost income + the next 12 at a higher rent. Probably a wash for me as long as no significant inflation, since the theoretical interest value I would forego is pretty low.
The PM's initial idea was to NOT ask for the usual small bump, and keep the rent the same.