- Aug 8, 2011
- Metro-Worst, assachusetts
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IF they can't pay for 3 months (as an example), can you modify their lease and extend them for 3 months?I happen to be a commercial landlord, but very little difference now between that and residential. Being stuck in the middle between people that may not be able to pay and the bank with it's hand out.
I've been thinking a lot how this is going to work in the short term. Luckily I'm not spend-thrifty, live within my means, and I'm relatively prepared for a long drought....but it makes me less than thrilled to have to take a hit for those who are not.
Anyways, I spoke to my commercial banker guy the other day who is a lender at a large regional bank, within a lot of compassionate words he said this
"We are working to implement a program that will defer principal and interest payments for 3 months."
Good to hear. But in the end if I give my tenants a break I'm out that money forever, and I still have to pay my mortgage.
Deferred payment deals often leave the interest meter running - it's not like everything is put on hold. "...that will defer principal and interest payments for 3 months. " Note that this does NOT state "stop accumulating interest". The net effect will either be make-up payments for the interest during the deferral time or an extension of the loan.If your bank defers payments but your tenants dont pay, I dont see how you are out money. You will be out money when the businesses you rent to go tits up and theres nobody to fill the vacancy. Then you (and all of us) are in trouble.
We saw the same sort of thing at the ski area in 2008-2009. Some of the people who usually skied close and cheap fell off, but were replaced by folks who usually went further North, out West, and to Europe. Business really didn't fall off at all.I was in the travel industry around 9/11. People still took vacations but just stayed closer to home and in the states. I think you will be OK.
Good tenants are worth their weight in gold. I would work with a good tenant if they fell on hard times. I had a carpenter renting from me and when things were slow I would barter rent for him doing projects that I didn't have time for. Win/Win.I rent to an elderly lady that was just recently treated for cancer. She has been my tenant for 16 years and never missed a payment. I don’t want her leaving the house as she has always paid me in cash. It can wait. If she ends up with the virus I am sure the place will end up vacant. Her health is way more important then the rent. Luckily I own the property outright
Plus property management is a pain in the ballsack. One of the guys i smoke cigars with owns two multis in the cup region. Without fail at random times theres the "bweah i lost my key" "bweah my toylet doesn't work" etc, etc, ad nauseam.Don't assume. The maintenance and upkeep on the 200 year old building is a profit decimator.
I'm just saying the other expenses mentioned above are more annually than the mortgage payment. Property taxes are full retard in MA
That's residential. You couldn't pay me enough to go near that. Jack.Plus property management is a pain in the ballsack. One of the guys i smoke cigars with owns two multis in the cup region. Without fail at random times theres the "bweah i lost my key" "bweah my toylet doesn't work" etc, etc, ad nauseam.
ETA: yes, they make him good retirement money, but its not without bullshit
Thankfully he has family in like 50% of the units, and they never call, its the one offs here and there... well that and town stupidity with the town fining him for trash cans being in the wrong place or some bullshit that they like to do in cup townsThat's residential. You couldn't pay me enough to go near that. Jack.
And that is why my mortgage is on auto pay. I'd probably forget multiple times otherwise.Rent to my sister and she works for a mental health faculty that's about a mile from here so no self quarantine for her.
My only problem is remembering to pay the mortgage missed this month distraction and stupidity on my part.
People will think a vacation home is cleaner than a motel. A huge perk is the option to cook meals rather than eat out all the time. If a large/extended family or group of friends go in together it's an economical break.9/11 didn’t impact the potential health of someone renting a home. Yes we have a cleaning company that comes in between renters but that doesn’t change people’s perception and worries.
9/11 also didn’t have anywhere near the economic impact that it looks like this thing is gonna have. If people lose their jobs or have to close their business, they ain’t takin vacations.
I hope it's sooner than later, school is canceled until May 4th, I think it's going to be a short summer vacation.People will think a vacation home is cleaner than a motel. A huge perk is the option to cook meals rather than eat out all the time. If a large/extended family or group of friends go in together it's an economical break.
Some people will lose jobs. Some businesses will close. Unless this thing drags on past August or there is a natural disaster or some other wild card I think it will bounce back sooner than later.
It's kind of like filing a case to force your local PD to process an LTC application which they have stopped because of the virus. By the time the courts would even hear such a case, it would be moot and the courts would have no interest in hearing it for the purpose of establishing future public policy.You are screwed either way...you can work with them or they just stop paying....it will be months before the courts are up and running and there will be a huge back log...and the first cases to be sorted out wont be for non-payment of rent....
Anchor tenants, and Cheescake Calorie Factory comes close to that status as a large external protruberance, leaving a mall increase the chances of the entire property going "dead" and make the mall less attractive to other tenants.I really think Cheesecake factory are betting the landlords can't do sh!t to them- as the demand for large restaurant spaces was kind of flat before, and is tanked now.
One upshot is maybe this bullshit will make the malls reinvent themselves or self destruct and make room for something else.... talk about a tipping pointAnchor tenants, and Cheescake Calorie Factory comes close to that status as a large external protruberance, leaving a mall increase the chances of the entire property going "dead" and make the mall less attractive to other tenants.
You can throw their shit out, lock them out and find another tenant. "It will be months before the courts are up and running". It's a two way street. Jack.You are screwed either way...you can work with them or they just stop paying....it will be months before the courts are up and running and there will be a huge back log...and the first cases to be sorted out wont be for non-payment of rent....
I agree. I think a lot of malls were already on life support. There are so many empty spaces in the malls local to me as more and more business is done online. This could be the final nail in the coffin.One upshot is maybe this bullshit will make the malls reinvent themselves or self destruct and make room for something else.... talk about a tipping point
IMHO most of this with restaurants is burnout. I'm going to guess they only had one guy running them. You need a bare minimum of 2 people if not more, unless we're talking a hot dog stand, food truck or something... The usual deal is someone gets into it, knows how to make food that isnt shit, but doesn't understand that they need to share the work with someone, they run most of it themselves and don't trust anyone else, then two things happen, either they dont know how to run a business and it dies that way, or they SORTA know how to run it, and they stay in the black, but by the end of the year or so they're like "I need to sell this albatross or I am going to blow my brains out" etc.I'm not a landlord or a business owner and can't imagine being one in this climate. In my town there is a commercial property that has had several good restaurants open in the 15 years I've been living here. They all failed in less than a year. Don't know why, the location is good and the food at all of them has been good.
Note that the Cheesecake factory has announced it hopes to "resume rent payments" later, but makes no reference to actually coughing up the rent they have not paid. Many in the game is coming up with phrases that translate to FU - like "deferring interest", not "putting a moratorium on interest accumulation".When a commercial tenant asks if you will "work with them", what they really mean is that they want to F++K you out of the rent forever. To me, "work with tenants" means that I bill them for the rent and they pay it. It's me or them. Jack.
Yup. That's exactly how I dealt with my first deadbeat tenant when I bought my first income property. I was 25 when I bought a 2 family. The profit margin was very thin. Essentially, both rents took care of all the expenses with a very small positive cash flow. The second floor tenant was late on his first two rent payments. I told him there can not be a third time. I explained that if doesn't pay his rent I can't pay the mortgage. Next month he's late again and said he would pay when and if he got around to it. The next day when he left me and four friends moved his junk out to the sidewalk and changed the locks.You can throw their shit out, lock them out and find another tenant. "It will be months before the courts are up and running". It's a two way street. Jack.
Place sucks anyway.Cheesecake Factory will not be able to oay April rent.
The Cheesecake Factory won't be able to pay its April rent at its nearly 300 locations, highlighting how deeply the coronavirus pandemic is affecting the restaurant industry.www.cnn.com