If you don't know this term now you must have just returned from Mars. Yes, almost every person alive learned in the last 10 days that we need to keep at least six feet between each other. Thus is life in a pandemic.
On Monday Indiana joined many other states with a Stay-At-Home Order.
Strangely, when the language of the order was published, we learned that unlike most other states, Indiana considers professional services an "essential" business allowed to be open. Real estate falls under the Professional Services banner, as does attorneys and doctors. We have had a lot of discussion this week on just how essential all real estate is in a time like this. Most professional services can be handled from a home office. Management of properties does require us to continue to be out in the community. So, we decided to do our part and move everybody home with the exception of our field staff.
One side benefit- tenants who have been reluctant to use technology to pay rent or report maintenance have made great strides in the last two weeks. You may feel pretty alone today without using technology.
Coronovirus May Have Affected Indianapolis Landlord Laws
The ongoing battle in Indianapolis between government and community groups against landlords was given unexpected support from Governor Holcomb. In a complicated scenario, the Governor vetoed a bill presented by his same-party legislature for only the 2nd time in 5 years.
The bill he vetoed would have forced local governments to abide by state-wide laws regarding tenant rights. This state law would have over-ruled local tenant protections passed in Indianapolis in January this year. The Governor stated the timing of the bill was very bad based on the hardships tenants are experiencing with the COVID-19 virus. There is a very remote chance the legislature could override the veto. Most observers believe this is unlikely.
When the state bill was first written, most of us were not concerned about a virus. The disruption we all now are experiencing was an unlikely scenario from even the sickest imagination.
We are assessing what we have to do to abide by the new Indianapolis laws. What you need to know:
1. Tenants have extensive rights spelled out in a document that we have to incorporate into leases.
2. Tenants may not be evicted because they report living conditions to the health department.
3. A Tenant hotline will be created for advise and reporting bad landlords
We will write more about the details as we receive them. For now just be prepared that Indy is going to make a huge effort to eliminate property owners who do not uphold certain standards. The days where people invested mostly in Indy because it was so landlord friendly are likely long gone.
But..that does not mean Indy does not still offer one of the most attractive cash flow markets in the US. I can say with a great deal of certainty, if you are reading this we already know you are going to have no issue with any of this legislation.
Stimulus and More For Your Tenants
Between unemployment compensation and federal government checks it looks like our renters are going to have some cash coming in..for a while.
All of us hope this is a short term issue and our tenants will be getting back to work shortly. It is possible that they are going to face joblessness for a while as certain positions may not return.
As of this afternoon the President has signed a $2.2 trillion dollar legislative package to send economic relief to our tenants (and some of us). It is the largest stimulus plan in US history.
The WILMOTH Hardship request had its first 5 Submittals
We published the form Monday and as of this afternoon, we only have 5 hardship requests. What does that mean? Probably nothing. These are the tenants who are planning ahead. The few who pay their rent on time five days early.
We expect next week and the week after to see a big spike in these requests. Our policy is to let the tenant explain what they can do and not provide actual rent relief, but approve delayed payments and waiver of late fees. We all share the same goal of keeping tenants in our homes through this very difficult time.
Want To Feel Good?
Sure you do. And since our options are limited (no baseball opening day Thursday is maybe the saddest thing outside of no March Madness) we are all probably catching up on movie watching.
Jen and I watched Beautiful Day In The Neighborhood this week. A lot of depth to the movie about caring for each other. At this time, caring about and for each other is so important. We recommend you add it to your watch-list.
We pray you are healthy and finding new happiness in each beautiful day.
