The COVID Crisis has helped many tenants and landlords demonize the other.  The truth is that both groups are suffering, and it takes mutual respect and cooperation to work through and beyond the crisis.  Read on for perspectives on both landlords and tenants, and how to move forward.

Unsavoury Thoughts

Through mainstream and social media, a lot of negativity abounds:

1. “Landlords are rich and selfish.”
2. “Tenants just want to get a free ride.”
3. “Landlords should let me not pay my rent.”
4. “Tenants should have saved enough money for 6 months rent.”

Unsavoury Consequences

Tenants do NOT pay rent

1. Landlords will be less likely to provide rental units in the future.
2. Landlords will be MUCH pickier when choosing tenants in the future.
3. Landlords will evict tenants the first chance they get.
4. Developers will build condos, and not rentals.

Landlords do not offer any flexibility

1. Tenants will demand and get more protection from the government in the future.
2. Tenants will leave that particular landlord the first chance they get in the future.
3. Tenants are less likely to respect the property.
4. Income and profitability will reduce.

Essentially, when each group takes the extreme position, then the future becomes harder for both.  However, it is my opinion that if tenants make it too hard on landlords, then being a landlord is less profitable, and the supply of rentals will go down, and therefore rent will go up.  

Common Understanding

One of the ways to bring groups together is to highlight the common issues.  Some or all of the following statements are true for both tenants and landlords:

1. I am scared for my family’s health.
2. I did not plan properly with 6 months of savings, and now I am stuck.
3. My income has been cut or I do not know if/when my income will be cut.
4. I have bills to pay and I do not know how I will pay them.
5. If this does not end soon, my life as I know it will change forever.
6. If this gets really bad, I may need to declare bankruptcy.
7. Will the government help me?
8. Will my lenders (credit cards/mortgages.Line of Credit) help me?

Whichever camp you are in, re-read the list thinking of the other camp.  It may be surprising how much understanding and empathy arises from the exercise.

Solutions to Consider

Tenants: 

1. Rent Deferral.  Can the rent be deferred for a month or more with a payment plan?
2. Government Help.  Governments have all kinds of programs to help, including income and rent replacement.
3. Budget.  Review the budget and remove non-essential costs.
4. Communicate.  If you may have problems in the future, tell your landlord earlier.

Landlords:

1. Rent Deferral.  Offer to defer rent with a payment plan.
2. Free Rent.  Of course, this a tool.  Consider a renewal or rent increase?  Agree to use Security Deposit?
3. Mortgage Deferals.  Some banks are offering mortgage payment deferrals for those who need it.
4. Refinance.  Better than a mortgage deferral is to consider COVID: What To Do When Interest Rates Drop.
5. Communicate.  Be proactive and send a communication to your tenants with your COVID strategy.

Both Landlords and Tenants.

1. Review Personal Budget.  Review the budget and remove non-essential costs.
2. Government Help:  Can the government help by making payments directly to landlords?
3. Loss of Job: Look for online work, if possible.  Start applying now.
4. Relationship. Being professional and owning up to your responsibilities will engender loyalty when this is all over.

Understanding, Acceptance, and Tolerance

Fear and uncertainty drive people to behave in ways that can certainly be judged and criticized.  In these times of crisis, it is easy to see “the other” as your enemy, or someone worthy of contempt.  In fact, their behaviour may even blind you to their suffering, or even invite you to your own misbehaviours…

The truth is that focusing on empathy and understanding allows us to work in good faith and move towards a win-win solution. 

And this is Good Business. 

And Good Karma. 

For Everyone.