NAVIGATING COVID-19 AS A LANDLORD
The effects of unemployment due to COVID-19 have been an economic disaster for landlords. With many tenants unable to pay and Indiana’s eviction moratorium ending, landlords are finding it difficult to maintain cashflows from rent. Even when the eviction moratorium ceases, the expected flood of eviction cases in the courts make it improbable that the process will occur as efficiently or quickly as it did, all but ensuring longer wait periods for rent owed. If you are a landlord experiencing difficulties as a result of COVID-19, there are options to recover some of your rents during this time.
For tenants unable to pay full rent, communicate with them to find out what they can pay. If you can come to an agreement on a partial payment plan, have your attorney produce a written agreement that includes the full amount owed, the sum to be paid toward that amount and how often, and that preserves your rights to evict the tenant if the tenant defaults on the plan. For tenants who cannot pay at all, research programs and organizations that provide rental assistance to tenants. These organizations are happy to work with landlords to keep tenants in their homes, and can provide an avenue for landlords to recover some rents. For example, the Indiana Housing & Community Development Authority recently enacted a program that will cover up to $500 a month for four months for eligible tenants. It has $25 million in funding. This program pays directly to the landlord, and cannot be accessed by the tenant without landlord approval. More information is available here.
In the event that there is a threat of specific immediate and serious injury, loss, or damage to a landlord’s property, a landlord may still proceed with a claim for eviction or possession. However, in all other instances, residential leases in Indiana will continue to be on an eviction moratorium through at least August 14, and perhaps longer, depending on whether Governor Holcomb decides to extend the moratorium for a fourth time. Given the current climate, this can be a hard time to be in the business of leasing residential property. Landlords should be encouraged to consider alternative options to maintain rents and landlords should discuss those options with their attorney if necessary.