Author Topic: Landlords helping with Coronavirus  (Read 875 times)

clarkfan1979

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Landlords helping with Coronavirus
« on: March 25, 2020, 10:32:12 AM »
My upstairs tenants in Hawaii are moving out on April 9th. Three different applicants were approved and wanted the rental.

1) Restaurant Manager. Credit score 725 and income 180K along with her younger brother who just graduated from college and is working at the restaurant with a credit score of 805 and income of around 40K. Requested move-in date of April 15th.

2) Engaged couple in the their 50's, both with a credit score of around 760 and combined income of 265K. Requested move in date of asap (April 10th). 

3) ER doctor currently in Florida with a current income of 525K and credit score of 790K. Wife works part-time as a physical therapist (20K to 40K). ER doctor is moving to Kauai for a salary of 360K. Wife is originally from Oahu. Original move date was July 1st, but they are now requesting that he start asap to help with the Coronavirus. He requested a move-in date of May 1st.

If I was motivated in my own self-interest, I would go with application #2, because it would result in 0% vacancy. However, I choose the ER doctor because Kauai is currently short on ER doctors. The sooner he gets to the island the better for everyone. I am choosing to take 3 weeks of vacancy, which will cost me about $2,000. However, it seems like the right thing to do.




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Re: Landlords helping with Coronavirus
« Reply #1 on: March 25, 2020, 12:13:45 PM »
My next-door tenants have had one job put on indefinite hold (restaurant PR job), one side hustle decimated (dog training/dog sitting) and a qualifying exam for climbing tree surgeon postponed.  I've offered some ground clearing and labouring work around my garden at the standard local rate to try to help out, but it's a win-win as far as I'm concerned to have a fit young man hauling rocks and breaking ground for me.

BicycleB

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Re: Landlords helping with Coronavirus
« Reply #2 on: March 25, 2020, 01:18:25 PM »
Lent $200 cash unasked to check-to-check renter suffering from shutdown of restaurant job.

Have planned and communicated to all 3 tenants that there will be no fees for late payment due to coronavirus interruptions. Turns out that after a 2 week gap, it looks like everyone will have stable income.

Dicey

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Re: Landlords helping with Coronavirus
« Reply #3 on: March 25, 2020, 04:23:50 PM »
My upstairs tenants in Hawaii are moving out on April 9th. Three different applicants were approved and wanted the rental.

1) Restaurant Manager. Credit score 725 and income 180K along with her younger brother who just graduated from college and is working at the restaurant with a credit score of 805 and income of around 40K. Requested move-in date of April 15th.

2) Engaged couple in the their 50's, both with a credit score of around 760 and combined income of 265K. Requested move in date of asap (April 10th). 

3) ER doctor currently in Florida with a current income of 525K and credit score of 790K. Wife works part-time as a physical therapist (20K to 40K). ER doctor is moving to Kauai for a salary of 360K. Wife is originally from Oahu. Original move date was July 1st, but they are now requesting that he start asap to help with the Coronavirus. He requested a move-in date of May 1st.

If I was motivated in my own self-interest, I would go with application #2, because it would result in 0% vacancy. However, I choose the ER doctor because Kauai is currently short on ER doctors. The sooner he gets to the island the better for everyone. I am choosing to take 3 weeks of vacancy, which will cost me about $2,000. However, it seems like the right thing to do.
Good call. Hopefully, you will have increased the rent enough between tenants that the vacancy won't cost you much of anything in the long run.

clarkfan1979

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Re: Landlords helping with Coronavirus
« Reply #4 on: March 25, 2020, 04:56:09 PM »
My upstairs tenants in Hawaii are moving out on April 9th. Three different applicants were approved and wanted the rental.

1) Restaurant Manager. Credit score 725 and income 180K along with her younger brother who just graduated from college and is working at the restaurant with a credit score of 805 and income of around 40K. Requested move-in date of April 15th.

2) Engaged couple in the their 50's, both with a credit score of around 760 and combined income of 265K. Requested move in date of asap (April 10th). 

3) ER doctor currently in Florida with a current income of 525K and credit score of 790K. Wife works part-time as a physical therapist (20K to 40K). ER doctor is moving to Kauai for a salary of 360K. Wife is originally from Oahu. Original move date was July 1st, but they are now requesting that he start asap to help with the Coronavirus. He requested a move-in date of May 1st.

If I was motivated in my own self-interest, I would go with application #2, because it would result in 0% vacancy. However, I choose the ER doctor because Kauai is currently short on ER doctors. The sooner he gets to the island the better for everyone. I am choosing to take 3 weeks of vacancy, which will cost me about $2,000. However, it seems like the right thing to do.
Good call. Hopefully, you will have increased the rent enough between tenants that the vacancy won't cost you much of anything in the long run.

It's costing me $2,000 of rental income loss (right now) regardless if rent goes up or down.

However, that is my societal contribution of helping with the Coronavirus.

waltworks

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Re: Landlords helping with Coronavirus
« Reply #5 on: March 25, 2020, 06:27:14 PM »
Kudos, man. You are doing the right thing.

-W

clarkfan1979

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Re: Landlords helping with Coronavirus
« Reply #6 on: March 28, 2020, 09:29:55 PM »
I would like to give a big thanks to MMM!

Because I have savings, I can make choices that are better for society, instead of just focusing on myself. If I was broke, I would definitely go with applicant #2, have 0% vacancy and take care of myself.

Now that I have a cash cushion, I am able to consider other options.

Jack0Life

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Re: Landlords helping with Coronavirus
« Reply #7 on: March 28, 2020, 10:31:19 PM »
My management emailed me 4 days ago saying the washer is broke and they can't fix it.
Cost to replace was $600.
I emailed them back asking if its in the contract for me to include washer and dryer in the first place.
While I'm waiting for the answer, I told my wife I would replace it anyway no matter what because in this time of need its a good gesture. They've been good tenants for 3+ yrs.
They emailed me back saying in the contract we didn't have to have a washer and dryer but it was a good gesture to place for them. I had already made it my mind to replace it.
The washer they wanted to replace was a 3.5 cubic ft washer. I found the same one for $429 at Lowes. Instead I replaced it with the 4.2 Maytag that was only $500 total. Much better.
I have no clue what kind of situation and they in and if they can even make rent next month but during this crisis, it

oldmachines

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Re: Landlords helping with Coronavirus
« Reply #8 on: March 29, 2020, 01:08:34 AM »
I have 4 commercial rentals. One is a children's gymnastics school. Tenant is forced to shut down for at least 2 months. We gave her the option of 3 months reduced rent (75% discount) and making it up with an increased rent on her remaining 12 months of her lease with the option of re-addressing the situation if she has to be closed longer than 2 months. I have talked to another commercial landlord in our area that is doing the same thing for one of his tenants. Luckily my other tenants aren't being severely affected AND we own all of our properties so all we have is insurance and property taxes to worry about. If I had a bunch of highly leveraged rentals with small cash flows I would be nervous.

Paul der Krake

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Re: Landlords helping with Coronavirus
« Reply #9 on: March 29, 2020, 01:21:00 AM »
What kind of restaurant manager makes 180k?

clarkfan1979

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Re: Landlords helping with Coronavirus
« Reply #10 on: March 30, 2020, 01:33:19 PM »
Large restaurant chains with a slightly higher price point. Restaurant managers also work 50-60 hr weeks.

When I worked at Jamba Juice in 2000, the GM manager made 80K. I think his base was 50K and 30K bonus based on sales. He probably now makes 120K/year in 2020.

Half the pay is salary and the other half is bonus on sales, on average.

I'm guessing a typical Olive Garden, base is 60K and bonus on sales is another 20K to 60k.

On the high end, Dave and Busters, base is 150K and bonus is 20K to 200K, depending on sales. Total is 200K to 300K.

A typical restaurant has one GM and 2-3 assistant managers. The GM is the one that makes the most money.

Any restaurant managers here that want to chime in with more specific numbers?