Our next podcast series has arrived!
This series focuses on making the most of your investments with some specific insights into real estate investment during COVID-19. Listen in as Marcia and I take a look at the current landlord compensation program for investors with tenants who cannot currently pay rent.
Featuring:
René Nelson, Eugene commercial real estate broker
Marcia Edwards, Eugene residential real estate broker
Making the Most of Your Investment Properties – Part 1
Marcia Edwards: Let’s talk a little bit about what people are doing to get compensation for unpaid rents, the Landlord Compensation Program in the state of Oregon. How’s that working out?
René Nelson: Oh, my heart goes out to every landlord that is out there. So it really has been a debacle. I really don’t care if someone calls the governor and says she said that on the radio.
Marcia Edwards: Well, it’s a spade a spade, you know.
René Nelson: Yeah. So here’s how the system was flawed to start with. Let’s say you had a 20-unit apartment complex and you only had three tenants that were behind on the rent, but they owed you a substantial amount of money. So you wanted to go on and apply to get some money to be reimbursed, and remember you had to agree that you would give up 20% of the deferred rent, which is a hit, but some is better than none.
Marcia Edwards: Exactly, exactly. Recovering it from the tenants would be far-reaching in those circumstances.
René Nelson: Definitely. So a lot of the landlords agreed, “Yep, we’ll take 80%.” But here’s the catch. When the web portal first opened, if you had a 20-unit apartment complex, you had to key in every single tenant, all 20 of them.
Marcia Edwards: Oh, no.
René Nelson: And you couldn’t upload your own rent roll through Excel or whatever software that you used. So think about all these professional property managers. I have a friend that owns and operates AG Campus Housing, and they did… She did one specific for a client, and she literally had to upload a 20-unit rent roll three times.
Marcia Edwards: Every entry into the rent roll over a period of time.
René Nelson: It involved the name, the unit number, the day they moved in, how long they had been there, and how much they were paying in rent, not arrears, but you had to do that for every single tenant on a brand new form that you’ve never used before.
Marcia Edwards: Well, thank God it was only 20 units, right? [chuckle]
René Nelson: But the interesting thing is, then it timed out on her twice and she lost it, so she had to key it in three different times before it even stuck the first time.
Marcia Edwards: Okay, so what do we do about this? Is this gonna get better, or what’s the plan? Is there an alternative to that route?
René Nelson: They are trying to fix the system, but right now it’s super tough. You should not plan on getting money. There’s some local money out there that we’ll talk about in the next show.
[music]
Marcia Edwards: Okay, so stay tuned for the local money. We have an option.
René is available to answer your real estate investment questions. If you’re considering investing in a property or want to know how the pandemic may affect your investments, schedule a 15-minute discovery call today.
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