While I’m a lawyer by trade, my wife and I also own a handful rental properties. A few days ago we were having dinner when an idea occurred to us both at the same time: “Our country is at war with an invisible enemy. America is in lockdown. We need to help our tenants who are now, or soon will be, facing real financial trouble.
“Let’s waive April’s rent. We can contact our tenants and tell them to not pay the rent for April as it is forgiven. We’ll call it the ‘Beaver Family Stimulus Package for Our Tenants.’”
And that’s exactly what we did, immediately reaching out to our Pasadena, Calif.-based property manager, Jon Anthony Dolan, and instructing him to phone and email our tenants.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The next day, we heard from some very happy tenants, some in tears. “Is this for real? Are you serious?”
Of course, we were serious. In fact, we want to encourage other landlords who have the financial ability to do the same thing. That’s why we were so glad when word got out, our local newspaper, the Bakersfield Californian, ran the story, and I was interviewed on local TV stations KBAK and KERO.
Of course, not all landlords are in a position to follow suit, as many depend upon their tenants’ rent to pay the underlying mortgage. But my law practice has many clients who own fully paid for rental units and do not depend on the rent to maintain their standard of living.
And the Results?
Following the newspaper article and television interviews, “The Beaver Family Stimulus Package” went viral. I’ve gotten phone calls from all over the country and ABC News wanting info. I’ve heard from landlords across town and across the country. Here are two local examples of what resulted from those news stories:
“We were kicking this idea around,” said Jeremy Price, general manager of Alpha Media in Bakersfield, “and then we read the article. That’s what we’re doing with our rental. You motivated us, Dennis!”
Bakersfield estate planning attorney Patrick Jennison — whom I interviewed for my recent column Coronavirus Legal Advice: Get Your Business and Estate in Order Now — sent this email:
“Your generosity in forgiveness of rent led us to conclude that we should do something like that. And that’s what we are doing with a townhouse we own in Southern California. We let the tenants know that for the next two months we would have them pay 50% rent, and they are thrilled. Our expenses stay the same, as even with full rent the place does lose money each month, but God has blessed us, and we can take the hit. I am sure their income has taken a dive like so many people.
“We have all been given so much. Thanks for encouraging us to share.”
In addition, a dentist, who asked to remain anonymous, canceled an overseas vacation and when she receives the refund, will distribute the money to her staff, who are all staying home.
A Helpful Landlord Assures Keeping Good Tenants
It is fair for a landlord to ask, “If I do this, what’s in it for me?”
Having many clients and friends who own rental property, I’ve learned the secret to retaining good tenants and seldom having trouble being paid rent on-time: If something is broken, fix it! Do the right thing. Show that you care about your tenants’ welfare. In this crisis facing all of us, those landlords who do will have the best tenants ever!
Remember: Helping each other during this coronavirus crisis is a win-win for all of us. What can you do to help the cause?
-
You Don’t Want to Retire in Portugal: Here Are Three Tax Reasons WhyRetirement Taxes With the NHR benefit retiring and pension taxes increasing, you might rethink your retirement plans in Portugal.
-
Home Depot's Winning Ways Fueled Its 100,000% ReturnHome Depot's wide moat leaves little room for competition – and shareholders have profited as a result.
-
Business Owners: How to Calculate Your Wealth Gap in Five MinutesHow much would you need from the sale of your business to retire without sacrificing your lifestyle? This simple calculation will give you an idea.
-
The Most Important Number for a Business Owner Considering a SaleCompany owners hoping to sell and stop working won't know whether an offer on their business is good enough unless they know their 'wealth gap.'Evan
-
Why 'Standard' Digital Background Checks Can Be So UnreliableMissing online data, as well as stringent federal and state privacy rules, make it difficult to discover a prospective employee's or tenant's criminal past.
-
The Four Worst Mistakes to Make When Selling Your BusinessFrom ignoring potential buyers to failing to consider what you'll do once you've stopped working, here are the key mistakes to avoid when selling a business.
-
Three Key Questions for Small-Business Owners in 2025Now is a great time to consider how best to position your small business for another successful year.
-
Post-Chevron DOGE: Is This the End of Federal Regulation?The Supreme Court's Chevron decision last year shifted regulatory oversight to Congress. How could that impact the work of Elon Musk and the new DOGE?
-
All-You-Can-Eat Buffets: Can You Get Kicked Out for Eating Too Much?Don't plan on practicing your competitive-eating skills at an all-you-can-eat buffet. You can definitely get kicked out. Plus, don't be a jerk.
-
Ignoring Your Company's Dress Code Can Get You FiredEmployers and prospective employees need to be upfront about expectations on the job regarding appearance, and other policies, before a job offer is accepted.
