Learn How This COVID-19 Pandemic Will Affect Your Monthly Revenue With Your Income Property And How To Cushion The Blow

Covid Affecting Income

As of March 25, 2020, unemployment claims grew to over 3.3 million, a record high. As states shut down non-essential activities, many businesses have been hit hard, particularly in the restaurant, retail, and entertainment industries. While the government is discussing relief proposals for individuals and businesses, rent is due across the country on April 1.

Some landlords have already gotten negative publicity for sending warning letters to tenants that no matter what type of layoff they’ve suffered due to COVID-19, they must pay their rent on time and in full. Text messages between tenant and landlord have been posted on the internet showing a range of responses, from concern and cooperation to cold-hearted “pay now or we will evict you.”

If you own property in the city of Los Angeles, Mayor Garcetti issued an eviction moratorium on March 15, 2020, due to the coronavirus pandemic. If your tenants have lost all or part of their income because they were laid off or the business where they worked has closed, they may not be evicted until the order is lifted. Similarly, they may not be evicted due to healthcare costs that they had to spend during the epidemic, or child care costs because schools have been closed.

If you own income property, what should your response be to tenants’ ability to pay rent in the face of sudden, unprecedented layoffs?

The Los Angeles city moratorium on evictions doesn’t say that tenants don’t have to pay rent. It gives them up to six months to catch on back rent they couldn’t pay during the coronavirus crisis. Most other cities that have issued similar orders also say that tenants have a specified amount of time to catch up on back rent.

Looking at some of the harsh letters that have been publicized via social media, we advise that your best approach is to be courteous in your communications with tenants and to be flexible. The crisis may grow worse before it gets better, and aid from the government could be delayed for weeks. Work with your tenants to catch up on back rent as they get back to work. 

Sources

https://www.npr.org/2020/03/26/821580191/unemployment-claims-expected-to-shatter-records

https://housing.lacity.org/

Given The Status Of the Fed’s Current Interest Rate at 0%, Is Now The Best Time to Refinance Your Mortgage?

Federal Rate 0%

Since the Federal Reserve cut its prime interest rate to zero in mid-March 2020, many onlookers thought that mortgage interest rates would drop. That hasn’t happened. With a few exceptions such as VA 30-year fixed-rate mortgages, nearly all mortgage interest rates increased. New mortgages for home purchases and refinances are all affected. The average rate of increase within the first few days after the Fed’s unprecedented announcement was 29 basis points (.29%) according to MarketWatch.

Why are rates increasing instead of decreasing?

Fears over people’s ability to pay their mortgage at all are the likely reason for short-term percentage rate increases. VA mortgage interest rates may have decreased slightly because most, if not all, reservists are either called up or have been notified to be prepared to return to service as a result of the COVID-19 pandemic. The VA home loan guaranty may be encouraging lenders to reduce interest rates slightly in response to the current crisis.

Other lenders and programs are seeing interest rate increases for a variety of reasons. Most financial advisers are saying that so much is uncertain in the current COVID-19 pandemic and crisis that it’s probably impossible to predict whether rates will increase or decrease in the weeks to come.

Other news impacting mortgage rates

The Internal Revenue Service has announced that taxpayers can defer tax payments until July 15, although tax returns must be filed by the April 15 deadline. Those who are self-employed, including people who own and lease property, will need to continue to make quarterly estimated payments, however.

Property sales will likely be impacted by the uncertainty in tax filing rules. The IRS is still considering whether to extend the April 15 tax filing deadline in general for individual and corporate taxpayers.

In the short-term, home mortgage rates have increased. Good news may be on the horizon, however, in the form of lower rates for refinancing and home purchase after the COVID-19 crisis begins to be resolved.

 

Sources

https://www.marketwatch.com/story/mortgage-rates-surge-to-highest-level-since-january-even-though-the-fed-just-brought-interest-rates-to-0-heres-why-2020-03-19

https://www.marketwatch.com/story/the-irs-postponed-tax-payments-but-you-still-have-to-file-your-1040-by-april-15-for-now-2020-03-19?itm_source=parsely-api&mod=mw_more_headlines

 

 

Learn Expert Tips On How To Deeply Sanitize Your Home Against The Corona Virus That Has Claimed Many Lives

Deep Cleaning for Corona Virus Covid-19

With coronavirus (COVID-19) affecting so many aspects of life, we’re all spending more time at home. The disease is also affecting the way we think about cleaning and sanitizing. It’s probably fair to say most people want their homes to look clean and smell fresh, but the focus now is on keeping the virus away from ourselves and vulnerable family members. We’ve put together a few tips on how to keep your home clean and as free as possible from infectious viruses.

Do daily cleaning and disinfecting.

First, before you start cleaning, the CDC advises you should wear disposable plastic gloves. Coronavirus can live on stainless steel and plastic surfaces for up to 72 hours. This is the reason why experts advise you to focus on faucet taps, doorknobs, and door handles, also known as “high touch surfaces.”

Clean these surfaces first with soap and water. Then, follow up with disinfectant.

What qualifies as a disinfectant?

Experts want everyone to know that some popular cleaning solutions like vinegar don’t kill coronavirus. Alcohol, bleach, and hydrogen peroxide are all effective chemicals that do kill the virus.

Alcohol can be diluted to 70%, and household bleach should be diluted using manufacturer’s instructions. Hydrogen peroxide can be used full-strength. Alcohol wipes are effective in sanitizing and disinfecting electronics like keyboards and touchscreens.

Do you need to sanitize and clean fabric?

According to the CDC, if no one in your house is infected with COVID-19, you can wash your clothing and other household fabrics as you normally do. However, if you’ve been out, you should remove your clothing and launder it as soon as possible. The virus is able to survive longer on plastic and stainless steel, so it could be present on buttons and zippers. 

The CDC has another warning related to clothing and fabrics used by an infected person: don’t shake them before putting them in the washing machine. Shaking the items could disperse virus particles through the air. Washing clothing in a normal washing machine with detergent will kill the virus.

Other germs in addition to coronavirus can survive on towels and clothing, so laundering them regularly will help prevent infections in general.

Viruses have no way to move on their own. They make people cough so they are spread through the air. Sanitizing surfaces regularly can make your home safe from the coronavirus/COVID-19 disease.

Sources

https://www.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/disinfecting-your-home.html
https://www.dailytargum.com/article/2020/03/rutgers-experts-explain-how-to-sanitize-homes-during-coronavirus-outbreak