Several people have said our industry 'will be fine' because everyone will pay rent with their stimulus check. I say that's not gonna happen.

QUESTION: Several people (not in our business) have said the apartment industry 'will be fine' because everyone will pay their rent with their stimulus check. I say that's not gonna happen. What are your thoughts? #multifamilystrong

NOT GONNA HAPPEN. THEY ARE GOING TO BLOW IT BECAUSE THEY KNOW WE CANT FILE,

My daughter used hers to pay her rent!

We did as well.

I got some payments yesterday so maybe some will but it's not likely everyone will.

Responsible renters will, the others will get evicted once everything is lifted.......

I got a few payments yesterday and this morning from stimulus. But I know that not every resident will do that. ????

I mean, it’s one check. Some will some will not. How far do people expect that check to go?

Lee Tifani thank you for saying this.

I think most will. But definitely not all

Not all...I remember stimulus $ from Hurricane Katrina being used for designer purses, nails and parties...????. Many took advantage of kindnesses and donations .....

I thought so too, I did have a resident yesterday tell me that’s all the money she has and she doesn’t know when she’s getting more so she’s refusing to give it to me for rent. At this point we can only hope they have their priorities straight!

Kristie Lee not a bad decision, seeing there are no immediate consequences to not paying rent right now. People in her situation should prioritize paying for things that can’t wait at the moment.

Lee Tifani yeah I’d prioritize food over rent if I had to make the choice

Not on the Student side - most of my residents get nothing and their parents get nothing for them even though they're dependents. Also not sure in conventional either. People know evictions for non-payment are null so they will prioritize.

I think that there are many people who are confusing an eviction moratorium with having rent waived. I also think that many folks who get behind on their rent will not be able to cover payment arrangements if they spend their stimulus check on other things. I'm hoping that people act responsibly, but we know that not everyone will.

I agree, and the media isn't doing them any favors. I think they are in large part responsible for the misconception.

It will vary! I think some will realize that once the court system opens back up we will have to file and if it's a few months they might not be able to keep up. However I know a few have mentioned vacations... Sooo time will tell.

www.savingtoinvest.com/maximum-weekly.../ . When you add the $600 maximum weekly fed benefit to the weekly state benefit, even a state like Tennessee @ $275/wk is an annual run rate of $45,500. At a 3 to 1 income to rent ratio, that would cover a $1250 rent. Given the additional coverage to gig, 1099 and self employed, the ability to pay will be there. I think some portion of the population will hold off on rent because for the moment they can, and holding cash gives them some mental “security”.

I think that it depends. Here in FL unemployment benefits have been slow to be approved and paid out so they may choose to use for essentials until they receive their unemployment benefits. ☹️

The stimulus check covers about a half month of our market rent, and I doubt my residents will use it towards that when they need money for food. With this still happening, imagine what May delinquency will look like!

Many cannot make more than 2 months of rent without working. It’s not over yet and paying deferred rent payments means we have months of debt to work off.

Depends on how strict you are with rent payments

Dan Holden and how strict our counties are allowing us to be...?!

Nope! They will spend it on groceries, new tv’s, new wardrobe, etc...

Based on the NMHC rent study released today, the collection rate for April is 93% of both March and Last April. Pretty good. Stay tuned for May.

I think there is a responsible portion of the population that will use it to pay mortgages and rent and their bills. Or put it in savings in case the economy takes a deeper dive. However, there will always be that portion of the population that thinks that because the Governor or the President said that there will be a freeze on evictions that they will get a free pass. They won’t look ahead at the repercussions down the road. Sadly, I already saw someone post on Facebook that they were going to buy a new gaming system and have a party this weekend and buy “the good beer.” ????????‍♀️

Not going to happen- they didn’t pay with $$$ they received during Katrina- I remember people blowing it all at the Galleria for designer items. This may not be all but there will be a majority that do not pay.

I think people are faced with a lot of challenges at a time with the future is uncertain, jobs are evaporating, and health is compromised. Our industry is focused on rent payment because it is what fuels our business. We need it to cover mortgages, payroll, and operating expenses.
Residents are fearful and many were already living paycheck to paycheck. They have other big financial obligations. Do they pay rent or spread the stimulus check across 5 or 6 other bills? What about small mom & pop businesses without the capital to carry on without revenue? My guess is that we will see much higher delinquency in May and June.
And that’s for our healthy residents. We haven’t factored in those who are directly affected by Covid-19 or who have lost family members to it.
I want to resist the impulse to label people as good vs bad, responsible vs selfish/irresponsible, etc. We still need residents to pay rent. That’s a fact. And we can treat them with dignity and empathy at the same time.

I manage 21 properties (houses and apartments). I have long term tenants (as long as 28 years) and so far I've had only one tenant not pay,but she has been an ongoing problem. Her lease expires next month. One tenant was laid off from her job at a local restaurant. She started calling me 2 weeks before her rent was due to let me know she would be late. She apologized over and over again. She has since called me 2 more times to let me know as soon as she gets money she will be in to pay rent.
Another tenant was sick and did not work for 2 weeks and he is paying his rent this Friday.

Two kinds of residents are being revealed - Those who are doing what they can to be responsible and those who are irresponsible. Fortunately, most of our residents are demonstrating tremendous responsibility. Some are getting new jobs, some have lined up assistance, and some are voluntarily making other arrangements. Almost all of our PTP's have been fulfilled as scheduled. For most, stimulus money has been a godsend.

Unfortunately, this week we have also seen cars with new rims and new big screen TV boxes. Curiously, they mostly belong to residents whose payment history was already sketchy. We are taking careful notes.

In the end, we will work with those who have demonstrated responsibility. For many of these, some or all of their debt will be forgiven, they will be given a fresh start and we will be pleased to have them as loyal, long-term residents. Those on the naughty list will be evicted at first opportunity. This is what we mean when we say our approach is case-by-case. Contrary to the hope or belief of many politicians and corporate types, there is no one-size-fits-all solution.

This unique situation affords everyone an opportunity to show us what they deserve; and, gives us an opportunity make sure they get it.

Pay attention. Know your residents, build flexibility into your systems, then use wisdom, experience and good karma to follow through appropriately. In this way, landlords can make a positive difference and help the world get better.