Life as we know it has changed drastically over just the past few weeks due to the Coronavirus. While this pandemic has had an impact on our personal lives – such as steering clear of most public places and practicing social distances – it has also affected the income of rental property owners in Florida. And the more units you own, the more your income could potentially be slowed.
So, if you still owe a monthly mortgage payment to a lender, how can you keep yourself from falling into financial hardship, and possibly even losing your investments?
The CARES Act could provide you with at least some relief.
For instance, if you own and carry a mortgage on multi-family rental property(ies), you could find at least some reprieve on the outgo side of your balance sheet. One reason is because the FHA (Federal Housing Administration) announced in late March that both Fannie Mae and Freddie Mac will offer mortgage forbearance for multi-property owners.
But it’s important to note that this comes with a condition in that the owners of the properties suspend all evictions for tenants who are not able to pay their rent because of COVID-19. Based on provisions of the CARES Act (Coronavirus Aid, Relief, and Economic Security), the largest economic relief bill in United States history, qualifying properties must be “insured, guaranteed, supplemented, protected, or assisted in any way by federal programs, including but not limited to HUD, the Federal Housing Administration, Fannie Mae, Freddie Mac, or the Section 8 Housing Choice Voucher Program.”
Because the Coronavirus has still yet to peak in the United States, it is likely that things won’t turn around for the better, at least for a while. That being said, you still have options when it comes to communicating with tenants, continuing with ongoing maintenance, and responding to emergencies.
Having a property manager on your side can provide you the opportunity to focus on other things. Doing so can also give you a “lifeboat” in critical times like these for ensuring that your tenants are receiving the most up-to-date information.
If you own investment real estate in the Orlando and / or Central Florida area and you would like more details on how adding a property manager to your rentals can help, Contact Us today.
Coronavirus (COVID-19) Guidance. The Florida Apartment Association.
FA on Federal Coronavirus Relief Bill (CARES Act). Tax Foundation.