July 31st, 2020 - Update & Tip
Watch for a tip on avoiding former tenant lawsuits!
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In the News
Rental payments slowing down... in early July, same as 2019
The National Multifamily Housing Council’s most recent rent tracker shows a decline in rental payments in early July compared to previous months. It found that only 77.4% of apartment households had made a full or partial payment by July 6th. Those numbers shouldn’t worry us, as there was also a decrease in payments in the month of July in 2019. We also need to keep in mind that the typical month is around 81-82%.
The HEALS Act - What you need to know
HEALS stands for Health, Economic Assistance, Liability Protection, and Schools. It is a proposal for a stimulus package that would provide households with almost identical benefits to the first round of checks, which were issued through the CARES Act.

What does it contain? 
  • An extension of unemployment benefits, but reduced to $200/week
  • Additional stimulus checks for qualifying households
  • Liability protection for businesses against lawsuits based on COVID-19 exposure
  • Enhanced payroll tax credit for hiring and retaining employees
  • Improvements to the Payment Protection Program (PPP) for businesses
  • $113 million in funding for the Rural Rental Assistance Program
  • $2.2 billion in funding to maintain assistance for households that currently participate in the Section 8 Housing Choice Voucher Program.

What it doesn’t contain:
The proposed HEALS act doesn’t contain an eviction moratorium (Yet), but most likely there will be some sort of eviction moratorium passed in August. 

Implications: 
If you have tenants that you do not want to renew, serve them “end of term” notices immediately, so if needed be, the eviction will be allowed before the law goes into effect. Same goes for “Pay or vacate” notices. Submit them as soon as you can.

If the legislation passes, it is recommended to go back to the deferral agreements. We will keep you updated with more information as it becomes available. 
Client Updates | News | Webinars
We have had a lot of content put out over the last several months and have been asked by some of our clients to have a centralized place to organize the newsletters, updates, webinars, and other information. For simple and easy access, we have created the page: KeyrenterSaltLake.com/client-updates .
Delinquency Updates
Rent Collection Report
July's rent collection rates have been similar to the last several months. As of today, we are sitting at a 97% collection rate, with half of those delinquent owing only a partial payment. These are also similar residents that have struggled in the past.

This is a 2.5% increase in delinquencies since this day last year.
Nate's Tip for Investors & Landlords
Rental References for Landlord Verification

One of the common steps in screening a tenant is to get verification from previous landlords that the tenant you are wanting to rent to was or is a good tenant. Unfortunately, many landlords don't want to fill these requests, especially if they are trying to get rid of a resident. And if they do provide it, how can you be sure they were truthful, especially if they really want the tenant to move?

If we turn things around and look at it from your perspective as the landlord of the tenant you are wanting to move out, how do you reply to those? Are you truthful by letting the inquiring landlord of the issues you have had? Even when given objective yes/no questions, how do you approach those situations?

There have been situations in some states around the country where attorneys have been hired by tenants to sue former landlords stating they were intentionally preventing their ability to rent based on the poor references the previous landlord was giving to the new landlord. Even if the things were true, there are cases where the legal system agreed with the tenants and punished the previous landlords severely.

This is a risk you may not want to take, and here's my recommendation and tip.

When you are asked by a landlord to verify rental history, simply respond with: "Our policy is that we do not provide verifications, but instead the tenant is welcome to print out their portal record and ledger to demonstrate their overall rental history. These printouts will confirm the tenancy period, rent amount, payment history, fees charged, and other information that may be helpful in your decision making process."

Do I recommend that you still ask landlords for verification of your prospective residents? Yes, I do. But please remember, whatever they tell you will need to be taken with a grain of salt. Their motivations are likely to be influencing their responses to you. You should also request the tenant's ledger and portal printouts.

If you find this helpful, please share!


~ Nate
Our relief fund for residents continues. Thank you all for you generosity as we have and will continue to be able to help our great residents having financial difficulty. Learn More
Have Questions or Concerns?
We're Here to Help
Whether you're a current client or not, Ryland has freed up her calendar and is available to connect with anyone looking for help or guidance during this time.