So the governor has given you a break from having to pay your rent. Your landlord can’t evict you until the end of May. But the rent you’re not paying yet is still owed. So what do you do? Negotiate.
While tenants may be happy knowing that the moratorium the governor implemented gives them protection from eviction, the moratorium is only for a few months, and nothing in the executive order means rent will be forgiven. Yes, that’s correct. The rent you didn’t pay in those months is still due!
But I don’t have any money! What am I going to do?! In any relationship, including that between landlord and tenant, communication is key. Especially in landlord-tenant relationships, communication almost always requires negotiation. Both parties have something the other wants. The landlord wants the tenant’s money. The tenant wants to stay and use the property. In a normal state, this is equally balanced by the monthly rent payment under penalty of eviction. However, with the moratorium, this balance has shifted, if only temporarily, in favor of the tenant.
Tenants should keep in mind that this imbalance in their favor will quickly end, and the balance will now be tilted in favor of the landlord when this moratorium expires. If you haven’t paid your rent for the past few months by then, you’re already in arrears. Just as you’re in a difficult situation, not having paid your rent may also have put the landlord in a difficult situation, as most landlords use tenant payments to pay the mortgages on the property. Now, your landlord may also be 60 to 90 days behind on bank payments. This creates stress on all sides.
Instead of letting this situation escalate, talk to your landlord. Tell them what you can do to catch up, even if it’s partial payments. Discuss a payment plan—perhaps larger rent payments for three months (or more) to catch up, or a lump sum payment at the end of the year when the economy has had a chance to recover. Perhaps negotiate payments related to economic stimulus packages. Landlords are people too, and most want to work things out with their tenants, but that desire can quickly disappear without communication and money.
If you discover that your business isn’t coming back, or that you won’t be able to return to your job, and you need to move, don’t wait until the last minute to do something. Negotiate with your landlord again. They can’t kick you out, but they can damage your rental history and credit. Instead, negotiate an exit strategy that works for both of you. Perhaps partial payments in exchange for more time to move. Something is better than nothing, and it also saves the landlord the expense of evicting you later (and suing you for more money).
The COVID crisis has done wonders to bring different communities together. Now is the time for landlords and tenants to discuss it.
By: Andrew Stilwell, Esq., Attorney at Contreras Law Firm