How to handle April rent payment/get-out-of-lease issues because of Covid-19
(link to 'rent deferment forms' on the bottom of this section)
The Idaho Apartment Association recognizes these are unusual times and encourages all rental owners to consider offering rent deferral for the month of April 2020, to tenants who have been directly impacted by the health measures in place to slow the spread of Covid-19.
We are hopeful the banking industry will also have deferral programs for mortgage payments, and are likewise hopeful a federal stimulus plan will put money quickly into the hands of tenants to help them with their obligations, and us with ours.
In the meantime, we encourage each rental owner/manager to consider rent deferral programs.
How Rent Deferral Would Work
(link to 'rent deferment forms' on the bottom of this section)
The Idaho Apartment Association recognizes these are unusual times and encourages all rental owners to consider offering rent deferral for the month of April 2020, to tenants who have been directly impacted by the health measures in place to slow the spread of Covid-19.
We are hopeful the banking industry will also have deferral programs for mortgage payments, and are likewise hopeful a federal stimulus plan will put money quickly into the hands of tenants to help them with their obligations, and us with ours.
In the meantime, we encourage each rental owner/manager to consider rent deferral programs.
How Rent Deferral Would Work
- At or before April’s rent due date, affected tenants would request rent deferral from their landlord
- Owners/managers will assess if a tenant qualifies under their criteria (a sample criteria is below)
- Tenants will be required to sign a rent deferral agreement, outlining repayment plans
COVID-19 Update:
Apartment Management, staff, and landlords need to be aware of the potential issues relating to the spread of the Coronavirus. Actions taken by local, state, and national governmental agencies should be followed as they may apply to your communities. Obviously, the precautions advised by health authorities should be strictly adhered to and followed as best as possible.
Should any general announcements or notifications be made to tenants?
Other than changes in the operation of the community, no general announcements need to be made regarding the coronavirus. As management and landlords, you are not experts in this area. Residents should be relying upon the experts to make decisions concerning their activities.
NOTE for HOPA COMMUNITIES (communities for older adults)
Because it has been determined that the most vulnerable persons to the coronavirus are persons with compromised immune systems and older adults, HOPA communities may want to review activities and uses of community areas. HOPA communities that have interior hallways and other interior common areas may want to increase the cleaning of those areas particularly with emphasis on areas which may be touched frequently (door handles, light switches, etc.).
The primary concerns are the continued proper operation of the communities during this outbreak. Landlords should be concerned about potential residents (applicants), current residents, and staff. The goal should be towards minimizing the potential of exposure to the coronavirus.
As to employees.
Consideration should be given to limiting exposure to others by restricting access to the leasing office. Requesting communication by telephone or email. Current residents should be advised of any restrictions and given options for effective communication with management.
As to tenants.
No need for management notices on general information about the coronavirus. If notices are deemed necessary, then keep those notices specific to the community. Discussions about cleaning their unit, use of facilities, etc.
There is nothing that would allow for a current resident to use the coronavirus to require more from management than the contract provides. This coronavirus “crisis” does not give any rights to terminate a lease or to require modification of a lease. Management may get a reasonable accommodation request concerning someone that is disabled and might have more vulnerability to the coronavirus. Those should be discussed with legal counsel to review. It would be an unusual situation where it would apply.
Provided by the Law Offices if Kirk A. Cullimore 801-571-6611
How to handle April rent payments/get-of-lease issues because of Covid-19
(please gold section with the same name for more info and forms)
While most tenants will still have the means to pay April rent, there may legitimately be cases where someone was sick or quarantined or lost income because of business closures. In these cases, it is better if we as an industry have a sensitive and reasonable plan in place to avoid government action, such as broader rent waivers or eviction bans that will affect all our customers.
If a landlord, manager, or owner is in a position to do so - we are recommending the following:
1. If tenants have a problem paying rent, we suggest you have a process to qualify them. (Please see "criteria " link below), but your criteria would likely require they be current on rent up till now, that they demonstrate they tested positive for the virus, were quarantined because of the virus, or lost work/income because of the virus. It wouldn’t be a blank check for anyone, just those actually affected
2. Tenants would sign an addendum outlining how they would pay back the deferred rent (please see "addendum" link below). Landlords would have the option of having one lump sum paid by a certain date, or splitting payments up over a period of months.
FYI on Student Housing – College students are being told to do all studies online for now, and some want to go home and get out of their leases. You are not required, even if you are a part of BYU-I housing, to release them. However, in the interests of goodwill, and maybe as a condition of signing a new lease next year, we ask landlords to try to work with tenants if possible. Lease buy-outs are an option.
Apartment Management, staff, and landlords need to be aware of the potential issues relating to the spread of the Coronavirus. Actions taken by local, state, and national governmental agencies should be followed as they may apply to your communities. Obviously, the precautions advised by health authorities should be strictly adhered to and followed as best as possible.
Should any general announcements or notifications be made to tenants?
Other than changes in the operation of the community, no general announcements need to be made regarding the coronavirus. As management and landlords, you are not experts in this area. Residents should be relying upon the experts to make decisions concerning their activities.
NOTE for HOPA COMMUNITIES (communities for older adults)
Because it has been determined that the most vulnerable persons to the coronavirus are persons with compromised immune systems and older adults, HOPA communities may want to review activities and uses of community areas. HOPA communities that have interior hallways and other interior common areas may want to increase the cleaning of those areas particularly with emphasis on areas which may be touched frequently (door handles, light switches, etc.).
The primary concerns are the continued proper operation of the communities during this outbreak. Landlords should be concerned about potential residents (applicants), current residents, and staff. The goal should be towards minimizing the potential of exposure to the coronavirus.
As to employees.
Consideration should be given to limiting exposure to others by restricting access to the leasing office. Requesting communication by telephone or email. Current residents should be advised of any restrictions and given options for effective communication with management.
- Limiting maintenance to units that have confirmed no sickness or symptoms. When a maintenance request for a unit is made, inquiries can be made to determine if anyone in the unit is sick or has been exposed.
- Management will still need to handle “emergency” or critical repairs. Repairs that can wait, can be delayed.
- Sick employees should be required to go home. Employees who know they have been exposed should be asked to remain home. (It is likely that in the next few weeks MANY of us will be exposed. Most will not know that they have been exposed. Normal precautions should be taken assuming that someone has been exposed.)
- Clean and disinfect work spaces and areas that are frequently touched. Avoid too close of contact with each other. Avoid handshakes, and other physical contact. Remind staff to wash hands frequently and avoid touching face.
- Management will still need to function with leasing activities. Be cautious with prospective residents and applicants.
- If Management is aware of someone exposed or sick, proper action should be taken to ensure that staff does not have contact. However, Management should be careful to not allow that information to be disseminated outside of the staff that needs to know. Sharing that information could violate privacy laws relating to the individual.
As to tenants.
No need for management notices on general information about the coronavirus. If notices are deemed necessary, then keep those notices specific to the community. Discussions about cleaning their unit, use of facilities, etc.
- You can and probably should restrict usage of the leasing office/clubhouse.
- Consideration should be given to closing of fitness facilities. If not closing, at a minimum Management should be posting on fitness room and other amenities that residents/users should clean the equipment themselves before use.
- Management should consider enhancing the cleaning of the amenities (both thoroughness and number of times)
- If you are able to provide cleaning wipes and hand sanitizer in the fitness area, that would be appropriate.
- If you are able to provide hand sanitizers in the clubhouse, leasing office, fitness areas, etc. that would also be appropriate and helpful.
- Management should cancel any parties or gatherings sponsored by management.
- Use of any of the amenities by a resident that might entail a large gathering should be discouraged or cancelled.
- While outdoor amenities can be prepared for summer use, Management should evaluate the timing of the opening those amenities until there is better information on the status and progress of the coronavirus.
There is nothing that would allow for a current resident to use the coronavirus to require more from management than the contract provides. This coronavirus “crisis” does not give any rights to terminate a lease or to require modification of a lease. Management may get a reasonable accommodation request concerning someone that is disabled and might have more vulnerability to the coronavirus. Those should be discussed with legal counsel to review. It would be an unusual situation where it would apply.
Provided by the Law Offices if Kirk A. Cullimore 801-571-6611
How to handle April rent payments/get-of-lease issues because of Covid-19
(please gold section with the same name for more info and forms)
While most tenants will still have the means to pay April rent, there may legitimately be cases where someone was sick or quarantined or lost income because of business closures. In these cases, it is better if we as an industry have a sensitive and reasonable plan in place to avoid government action, such as broader rent waivers or eviction bans that will affect all our customers.
If a landlord, manager, or owner is in a position to do so - we are recommending the following:
1. If tenants have a problem paying rent, we suggest you have a process to qualify them. (Please see "criteria " link below), but your criteria would likely require they be current on rent up till now, that they demonstrate they tested positive for the virus, were quarantined because of the virus, or lost work/income because of the virus. It wouldn’t be a blank check for anyone, just those actually affected
2. Tenants would sign an addendum outlining how they would pay back the deferred rent (please see "addendum" link below). Landlords would have the option of having one lump sum paid by a certain date, or splitting payments up over a period of months.
FYI on Student Housing – College students are being told to do all studies online for now, and some want to go home and get out of their leases. You are not required, even if you are a part of BYU-I housing, to release them. However, in the interests of goodwill, and maybe as a condition of signing a new lease next year, we ask landlords to try to work with tenants if possible. Lease buy-outs are an option.
Frequently Asked Questions:Question: What do I do if one of my tenants contracts COVID-19?
Answer: You as the landlord/manager have no obligation for how people report and act while infected with COVID-19. Please see the section "As to tenants" above. However; we recommend tenants follow the CDC's guidelines for self isolation, physical distancing, and increased sanitation practice. You can refer all of your residents to these recommendations.
Question: Trump announced on March 18th that HUD will be halting evictions, mortgage payments, and rent payments? What's going on there?
Answer: So far it appears that the measures taken by the president's administration only affects HUD loans and HUD owned rental properties; however, this situation is fluid and we will update you as updates come through. But for now it only affects those properties.
Question: How do we handle tenants who cannot pay April's rent?
Answer: Right now the recommendation is that landlords, who are in a position to do so, work with tenants who may be struggling to come up with April's rents as a result of the COVID-19 outbreak. For information on how to do so please see the section above titled "how to handle April's rent payment".
Question: I've heard that courts might be closing? Or that it is not worth filing an eviction right now?
Answer: This is partially true. Right now the courts are not meeting as they are trying to practice social distancing recommendations. This is a very temporary situation that should only last a couple of weeks. Evictions are allowed to proceed forward but you should anticipate court proceedings to take a few weeks longer than normal. (side note: this is another good reason to potentially work with tenants struggling with April's rent if you are in a position to do so)
Question: With COVID-19 do I have an obligation to provide cleaning supplies, clean common areas, or provide sanitation supplies?
Answer: You as the property owner/manager are not required to do any of these things. However, it is best practice for all of us to do our part in helping prevent the spread of communal diseases. We would encourage you to take any appropriate action you see fit to play your part in this community effort.
Question: Are there other resources I can refer to about COVID-19?
Answer: Yes, feel free to look at:
Answer: You as the landlord/manager have no obligation for how people report and act while infected with COVID-19. Please see the section "As to tenants" above. However; we recommend tenants follow the CDC's guidelines for self isolation, physical distancing, and increased sanitation practice. You can refer all of your residents to these recommendations.
Question: Trump announced on March 18th that HUD will be halting evictions, mortgage payments, and rent payments? What's going on there?
Answer: So far it appears that the measures taken by the president's administration only affects HUD loans and HUD owned rental properties; however, this situation is fluid and we will update you as updates come through. But for now it only affects those properties.
Question: How do we handle tenants who cannot pay April's rent?
Answer: Right now the recommendation is that landlords, who are in a position to do so, work with tenants who may be struggling to come up with April's rents as a result of the COVID-19 outbreak. For information on how to do so please see the section above titled "how to handle April's rent payment".
Question: I've heard that courts might be closing? Or that it is not worth filing an eviction right now?
Answer: This is partially true. Right now the courts are not meeting as they are trying to practice social distancing recommendations. This is a very temporary situation that should only last a couple of weeks. Evictions are allowed to proceed forward but you should anticipate court proceedings to take a few weeks longer than normal. (side note: this is another good reason to potentially work with tenants struggling with April's rent if you are in a position to do so)
Question: With COVID-19 do I have an obligation to provide cleaning supplies, clean common areas, or provide sanitation supplies?
Answer: You as the property owner/manager are not required to do any of these things. However, it is best practice for all of us to do our part in helping prevent the spread of communal diseases. We would encourage you to take any appropriate action you see fit to play your part in this community effort.
Question: Are there other resources I can refer to about COVID-19?
Answer: Yes, feel free to look at:
- https://www.naahq.org/news-publications/guidance-dealing-coronavirus
- https://www.naahq.org/sites/default/files/naa-documents/disaster/novelcoronavirus_guidance.pdf
- https://www.cdc.gov/coronavirus/2019-ncov/index.html
