Tenants Stopped Paying Rent - My Response

Lets discuss the recently headline that 1 out of 3 American Tenants didn’t pay their rent in April - Thanks! Add me on Instagram: GPStephan

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According to the headline: “No rent was paid in April by nearly a third of American Renters.”

Now, in almost every situation…the rule is that, you STILL need to pay rent, and you still OWE the money to your landlord, it’s not FORGIVEN…even though, right now, you can’t be evicted. But, by the time this eviction freeze is lifted, technically - you’re going to owe all your back rent, and then - AT THAT POINT - if it’s not paid, the landlord can move forward with an eviction - which, we’ll address very shortly.

But, to analyze this data PROPERLY, and look at how many people are not paying rent…we have to take a step back and look at this number, in context. Because, in the month before this…and, in the YEAR before this…it was average that almost 20% OF TENANTS to NOT PAY THEIR RENT ON TIME. That’s right…almost 1 out of 5 tenants, in a GOOD MARKET, can’t pay their rent on time.

HOWEVER…here’s what many of these articles leave out:

Many of them failed to mention that the Vice President of the National Multi-Family Housing Council, who were the ones that GATHERED this data in the first place…said that “The New Data For April With Historical Data is not a true representation of how rent payments are progressing.”

The term “NOT PAYING RENT” is counted when tenants don’t pay their rent, in full, by the 5th of each month. And, in April…the 4th was a Saturday, and the 5th was a Sunday, with many places closed from processing payments…meaning, rent probably isn’t going to hit until the 6th, on the Monday, after this data is already analyzed.

So, even though it’s unclear exactly how many tenants ended up paying rent on that Monday, that were NOT counted in this study…I have a feeling it’s going to cause this 1 out of 3 number to drop, even just slightly.

Second, I’d also like to mention that these are only tenants who pay ON TIME…and, as a landlord for almost 10 years now…I’ve had quite a few situations of late rent. Sometimes things come up, tenants make partial payments upfront, they pay the rest later…I get it, things happen, and we have to work TOGETHER if we want to get through it.

So, if you’re a tenant who’s not able to pay your rent…bring that up to your landlord, don’t just stop paying out of nowhere. Even though you’re STILL going to be responsible for payments, that doesn’t mean you can’t work out a payment plan with your landlord so that everyone is happy.

And, as a landlord, this is also a prime example of why it’s so important not only to screen your tenants thoroughly, to make sure they can afford the rent and aren’t spreading themselves too thin, but also to keep a heft cash reserve on the sidelines for anything that might come up.

For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com

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