06 Apr Housing Provider Guidance in the Puget Sound During the COVID-19 Pandemic
Housing Provider Guidance in the
Puget Sound During the COVID-19 Pandemic
Washington housing provider impacted by COVID-19
The impact of COVID-19 has affected everyone in some way and has provided us all to ban together to keep each other housed, fed, and encouraged. For landlords and real estate investors, the impact may be more than what you were planning for or expecting. As a landlord myself, please see below for helpful tips and resources that may help you during this unprecedented time.
Be Empathetic. Some people may have a hard time getting food, having accessibility to services they need, and mental health support. Being empathetic towards health, will help establish trust and provide others with the encouragement they need during this time. Keep in mind this is an humanitarian issue that we don’t know when and how it will end.
Be Proactive With Tenants. If you have not already, send out a letter or give a phone call to tenants. Ask how they are doing and give them a tenant resource list that is provided below. This may take extra effort, but this action will help in relationship building. Don’t “hope” that tenants are okay. Now is the time to be a good neighbor and landlord. Here are some support resources you can direct your tenants to: http://www.seattle.gov/mayor/covid-19
Communicate Flexible Payment Options. Fear has ramped up in every community. For the tenants that are affected by the COVID-19 pandemic, provide creative payment options. Please make sure to put all rent option agreements in writing. Here are some examples:
- Offer installment payment plans with no penalties or fees
- Offer security deposit options for rental payment
- Allow for credit card payments
- Exchange property maintenance for partial or full rent payments
- Allow for roommates to help offset the financial burden of one person
- Offer to move into a more affordable unit in your building with no extra move in costs
Communicate Health and Safety. Give out updated resident health and safety guidelines regarding COVID-19: https://www.cdc.gov/coronavirus/2019-ncov/index.html
Communicate New Cleaning and Maintenance Protocols. With social distancing, only emergency or essential services are considered necessary. Establish expectations to help tenants understand and navigate if they have requests.
Increase Cash Reserves. Depending on if you’re a small landlord or not, there are ways to look at increasing your cash reserves.
- Refinance-If you have the option to refinance, you can pull out some equity in your property.
- Bridge loans could provide some support for a short period of time. Typically they have higher interest rates.
- Personal Cash Reserve Investment-Look at your personal finances and invest money back into your “business.”
- Get an Estimate of your property to sell. This is not what I recommend. However, some may have to look at this option. I would highly advise to talk to your real estate agent and tax advisor before you make any sudden decision.
I recommend contacting your mortgage lender first to see about finance options. Here are some other resources to help you navigate through this difficult time.
- Landlord Fund Program: https://www.commerce.wa.gov/serving-communities/homelessness/landlord-fund-programs/
- SBA Disaster Loan: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
Provide Rental Assistance Resources for Tenants. Per County on the below resource, you can offer rental assistance options for tenants who are facing a hardship. Included, are utility and energy assistance programs.
As an investor myself, I am passionate about keeping people housed and your assets protected. We are all in this together. My resources and recommendations are from sites that I have mentioned. Guidance other than my sites, are based on personal preference of best practices.
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Other Resources:
Local Health Department: https://www.naccho.org/membership/lhd-directory?searchType=standard&lhd-state=WA#card-filter
Sources Cited:
Washington Resources for Housing Providers Affected by COVID-19