When the COVID-19 pandemic really hit the Bay Area and counties instituted shelter-in-place orders, I wondered if I would be receiving my normal rent payments. By mid-March, San Francisco and Alameda counties issued shelter-in-place orders and life as we knew it came to a halt. As background I own a two-unit rental property in San Francisco and another two-unit in Oakland. I am paying a mortgage on each property. The rent payments pay for the mortgage principal and interest, property taxes and insurance. The properties don’t cash flow at all.
I didn’t initially hear anything from my tenants about April rent payment. Then on March 30th I received an e-mail from one of my tenants in Oakland explaining that he would have trouble paying rent. I wasn’t surprised since I knew that he would be directly impacted as he is in the service industry. I guess it was wishful thinking to expect that his girlfriend/roommate would kick in and cover his portion of rent for him. I told him that late fees would not be applied and that I could either offer a rent deferral or a temporary 15% rent reduction. He choose the temporary rent reduction. Two other units paid as normal. Another one paid rent late towards the end of April. So far three out of four May rent payments have come in.
I am thankful for my tenants and grateful that so far I have been able to make my mortgage payments!