May Discount based on Employment - COVID

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4 years 8 months ago #37472 by Karen
In response to COVID my company is considering providing a May discount on rent based on a residents employer (healthcare, grocery, etc). Of course current employment would need re-verified. Does anyone see any potential problems - legally or otherwise with providing this discount? I know discounts are sometimes provided for preferred employers in multifamily. Just want to make sure there isn't something we have missed.
4 years 8 months ago #37472 by Karen
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4 years 8 months ago #37473 by Michael Knight
While it is certainly possible to provide a special benefit to Essential workers, my question is for what purpose and to what end? If the goal is pure altruism and you can afford it, then one can argue those who are not working may need and deserve such consideration far more. If the goal is to incentivize those who are able and responsible to continue being responsible, I don't believe this should be necessary if you are caring for residents properly.

Generally, we are finding that people want to work, want to pay their rent and want to do the right thing. Consider also that between gas prices, minimal travel, no outside entertainment, less dining out, etc., the cost of living is down. We're going to end up writing off a fair amount of rent and miscellaneous income by the time this is all over. The most effective way to do this on on the back end, not the front end. This way we can ensure it goes to the most deserving, we can better balance against the needs of the business and we can better reinforce the message that, Everyone is Responsible for Rent.

As a community manager, one of your enhanced roles right now is Life Counselor. Embrace this. Talk to every resident and work with those who are challenged to come up with an individualized plan that will truly help them. This will pay far greater long-term benefits than throwing cash at people. Well-meaning people in corporate offices trying to manage this with a one-size-fits-all approach will not get it done.

We are helping people on a case-by-case basis and so far, it is working very well. My partner and company president, Terri Clifton, is on the phone daily with managers and residents deciding who needs to step up and who gets a break. She is remarkably qualified to do this. She began adult life on-site with little more than a child and a cheap apartment over 30 years ago, so no one has to tell her how hard it is to pay rent. She understands what is needed, and what is possible from the perspective of both challenged resident and responsible owner.

Be sure your decisions consider what people truly need and what will help our economy most. Find the wisdom and experience to balance these appropriately, do it with good karma and you can't go wrong.
👍: Karen
4 years 8 months ago #37473 by Michael Knight