Rent Payment Crisis: How Communication Can Save Your Investment

[00:00:01] [SPEAKER_00]: So a lot of tenants are having trouble paying rent right now and like it or not, you may be dealing with a tenant that loses their job or gets behind on rent

[00:00:10] [SPEAKER_01]: Yeah, I've like, well, everybody knows like everything's more expensive, everything

[00:00:15] [SPEAKER_01]: Like it's horrible. It's horrible to watch, you know, we've been in this business for 30 years

[00:00:21] [SPEAKER_01]: And we've never seen delinquents use like this ever and don't forget every single tenant

[00:00:28] [SPEAKER_01]: That moves in, we run full criminal credit background checks on, we know where they're working. We know how much money they have

[00:00:36] [SPEAKER_01]: And they're bank account, you know, there's lots of lots of ways that we've vet them before they move in

[00:00:41] [SPEAKER_01]: and so

[00:00:43] [SPEAKER_01]: What we're seeing right now is is horrible, you know, because they're

[00:00:49] [SPEAKER_01]: They're in bad shape a lot of people they're having a tough time paying

[00:00:52] [SPEAKER_00]: Yeah, and I you know a lot of people that have never dealt with this kind of look at it like

[00:00:58] [SPEAKER_00]: Well, my tenant doesn't pay screw them, you know, I'm just gonna you know put a note on their door and call it a day

[00:01:04] [SPEAKER_00]: And the truth is is that you know

[00:01:07] [SPEAKER_00]: You're not doing anything proactive right like when you know your tenants elite

[00:01:13] [SPEAKER_00]: You shouldn't wait until their days and days late before you figure out why they're late

[00:01:19] [SPEAKER_01]: You know, yeah, and I would go a step further. I actually think that

[00:01:24] [SPEAKER_01]: You know we get into a very polarizing scenario right when somebody can't pay and somebody wants their money

[00:01:31] [SPEAKER_01]: Just you know no different than the her Republican the Democratic Party like it's exactly that right?

[00:01:36] [SPEAKER_01]: It's essentially they two people holding a position and I think the best thing you can do

[00:01:41] [SPEAKER_01]: It's embarrassing like when you can't pay something it's embarrassing. Let's just face it

[00:01:46] [SPEAKER_01]: So the best thing that the landlord could do is have a little bit of empathy

[00:01:50] [SPEAKER_01]: Go meet with the tenant if they're willing and that's a big piece what's never talked about is sometimes the tenants just go dark

[00:01:57] [SPEAKER_01]: Right there's no communication at all and I will tell you that in every scenario

[00:02:05] [SPEAKER_01]: I mean every scenario where somebody comes and says listen I've had a life interruption moment. I have this going on

[00:02:15] [SPEAKER_01]: You know who do you know that won't work with that person right, but right? So the issue

[00:02:19] [SPEAKER_01]: Well suddenly in lard's won't though yeah, but most will I would say so it does start with that first step now

[00:02:30] [SPEAKER_01]: And I get it from a tenant stamp. If I'm a tenant and I just get a harsh legal notice which of course they're gonna do

[00:02:38] [SPEAKER_01]: It can piss you off right as you are ready or probably

[00:02:42] [SPEAKER_01]: You know up to your neck and dad and anxiety and stress you probably have family and you got car payment issues

[00:02:49] [SPEAKER_01]: You need credit card issues and all those kinds of things are probably also there

[00:02:53] [SPEAKER_01]: So I get it

[00:02:54] [SPEAKER_01]: But I'm telling you the best thing you can do is go sit down with somebody a human face to face

[00:03:01] [SPEAKER_01]: Right and have a conversation with them

[00:03:04] [SPEAKER_01]: I'm telling you we went through this in 2008 in 2008 with the great financial crisis was a big deal

[00:03:11] [SPEAKER_01]: And we have a lot of people that couldn't pay we had a lot of people that that were going sideways and

[00:03:20] [SPEAKER_01]: And we we created a whole program as a company around this and every single tenant and this happened there to the pandemic too so we had to have twice

[00:03:30] [SPEAKER_01]: We had three buckets to the pandemic bucket one was people that went dark and when we knocked on their doors

[00:03:36] [SPEAKER_01]: They said they never answered them and they basically didn't communicate at all period that was buckle one bucket two

[00:03:45] [SPEAKER_01]: Where are the people that said

[00:03:47] [SPEAKER_01]: You know weren't trouble

[00:03:49] [SPEAKER_01]: bucket three where the people that said yep, I'm gonna still pay

[00:03:53] [SPEAKER_01]: I'm gonna figure this out right of course not everybody lost their job in the pandemic but so many did so

[00:03:59] [SPEAKER_01]: So you're able to work with buckets two and three right obviously three is easy because the people are just paying

[00:04:06] [SPEAKER_01]: Bucket two they're at least communicating with you bucket one which is the you know, hey screw you

[00:04:12] [SPEAKER_01]: I know you I'm just gonna I'm gonna I'm gonna bolt I'm gonna skip I'm gonna that so you got to look at both sides of it

[00:04:18] [SPEAKER_01]: So as a landlord if somebody's good moods to just bucket two then

[00:04:25] [SPEAKER_01]: You least have something to work with right and and you know there's all kinds of things landlord can do

[00:04:32] [SPEAKER_01]: I would encourage the tenants to understand this

[00:04:36] [SPEAKER_01]: If a landlord has to evict you it costs the money

[00:04:41] [SPEAKER_01]: If they have to turn your unit and there's maintenance etc and those kinds of things it cost you money

[00:04:47] [SPEAKER_01]: If they have to market it and spend money on advertising it cost you money

[00:04:52] [SPEAKER_01]: So there's an expense now I know some landlords are pretty short sighted

[00:04:57] [SPEAKER_01]: As well

[00:04:58] [SPEAKER_01]: But there's an expense associated with all this so the best remedy for a good tenant with good credit that got in there in the first place

[00:05:06] [SPEAKER_01]: is communicate and to try to figure out sort of a payment plan

[00:05:10] [SPEAKER_01]: You know, and that's where all these new companies are popping up. You know apple pay later

[00:05:15] [SPEAKER_01]: Flax these are all companies that are have a recognize that people are having to spread that

[00:05:22] [SPEAKER_01]: Rent burden or you know several weeks even a month even more so I think

[00:05:29] [SPEAKER_01]: I'm telling you

[00:05:30] [SPEAKER_01]: You know the majority of these issues can be resolved with just basic communication but to your point

[00:05:37] [SPEAKER_01]: Not everybody's open minded

[00:05:39] [SPEAKER_00]: Yeah, you know some landlords are in our hurry to get people out if they can't pay or you know

[00:05:45] [SPEAKER_00]: They you know and general people just seem to be bad at communication lately

[00:05:50] [SPEAKER_00]: So they don't want to have an uncomfortable conversation whether that be the landlord or the tenant

[00:05:55] [SPEAKER_00]: But you know in my experience

[00:05:57] [SPEAKER_00]: Reaching out really has made all the difference right like knock on wood, but I haven't had anyone not pay me

[00:06:03] [SPEAKER_00]: But I think you know it can be as simple as

[00:06:06] [SPEAKER_00]: You know the tenant has something come up that was expensive whether it's a medical bill

[00:06:11] [SPEAKER_00]: I had a tenant get a DUI one time and you know all the attorney fees were due

[00:06:16] [SPEAKER_00]: A week before her rent was due and so she was late, but you know they don't

[00:06:21] [SPEAKER_00]: Tenants typically don't reach out to you so they typically don't say hey

[00:06:25] [SPEAKER_00]: I'm gonna be four or five seven days late on my rent this month

[00:06:30] [SPEAKER_00]: Typically they just are and as a landlord if you don't communicate you're sitting there stressing out like

[00:06:36] [SPEAKER_00]: They haven't paid me they haven't paid me they haven't paid me we're in the tenants mine they're kind of like you know what

[00:06:42] [SPEAKER_00]: I know I have fees associated with this but I just can't do it right now and they don't communicate either

[00:06:47] [SPEAKER_01]: Yeah, so

[00:06:49] [SPEAKER_00]: So I think it's important to communicate

[00:06:53] [SPEAKER_00]: However, you know, this is a lesson too

[00:06:56] [SPEAKER_00]: You still go through your normal

[00:07:01] [SPEAKER_00]: eviction process

[00:07:03] [SPEAKER_00]: Until you do get paid so what I've seen landlords do as I've seen them. Okay. I'll pay you on the eighth

[00:07:09] [SPEAKER_00]: Oh, no, I'll pay you on the 12. Oh, no, I'll pay you on the 15th and

[00:07:14] [SPEAKER_00]: They're waiting and they're waiting and they're waiting and all this time's going by and

[00:07:17] [SPEAKER_00]: They're starting to feel like they might not get paid and you should never do

[00:07:21] [SPEAKER_00]: Never do that right so what you need to do is you know if you have a policy like an Arizona

[00:07:28] [SPEAKER_00]: It's five days late on rent a note goes on the door, you know

[00:07:32] [SPEAKER_00]: Stating that the rent is due. I still do all that even as the tenants like I'm gonna pay you on the eighth

[00:07:37] [SPEAKER_00]: You know, I I get paid on the eighth and I just let them know like hey that's great

[00:07:42] [SPEAKER_00]: That works for me

[00:07:43] [SPEAKER_00]: But I'm still gonna put this on the door on day five because we have to

[00:07:47] [SPEAKER_00]: Because if you are bsing me, I need to still get paid. You know, all right, I still need to be able to evict you, right?

[00:07:53] [SPEAKER_00]: I need to I need to start this process and not just rely on you

[00:07:57] [SPEAKER_01]: I'd like to back up a little bit

[00:08:00] [SPEAKER_01]: If if a landlord takes a hard position

[00:08:05] [SPEAKER_01]: They're probably an employee

[00:08:07] [SPEAKER_01]: Or they're probably some big corporate management company

[00:08:11] [SPEAKER_01]: If they're a if they're an individual owner that has a mortgage right? They're thinking a little bit differently

[00:08:19] [SPEAKER_01]: And so I think that if you have as a tenant if you're trying to communicate and you're getting stone wall

[00:08:28] [SPEAKER_01]: I would try to escalate it and elevate it personally, you know because I'm not I'm not saying that you should get away with paying not paying rent

[00:08:37] [SPEAKER_01]: But the people that we during during 2008 and during the pandemic the people that were communicating with us

[00:08:45] [SPEAKER_01]: We actually had them sign contracts that said we're gonna pay on the eighth

[00:08:51] [SPEAKER_01]: We're gonna pay on the 17th we're gonna you know, and so that you know, so they we basically did a side agreement

[00:08:57] [SPEAKER_01]: That allowed them a little bit of

[00:09:00] [SPEAKER_01]: Humility and and and they were able to just try to get away get out from behind this and and they were able to to make that

[00:09:07] [SPEAKER_01]: Happened, but I think what you're saying is

[00:09:09] [SPEAKER_01]: We should not

[00:09:11] [SPEAKER_01]: Do anything verbal or tax or anything like that. You should have them science stuff to should be for some what formal

[00:09:17] [SPEAKER_00]: Yeah, it should be formal so I guess it depends that they need a payment plan

[00:09:21] [SPEAKER_00]: That's a little bit different

[00:09:22] [SPEAKER_00]: But if they are like hey, I'm gonna get you you're running the eighth hey, I'm gonna get you your run on the tenth whatever it is

[00:09:29] [SPEAKER_00]: I'm still putting the five-day pay notice on the door

[00:09:32] [SPEAKER_00]: Because if they're not paying me and they go dark then which happens to a lot of us small landlords

[00:09:37] [SPEAKER_00]: Then I want to be able to then move forward in the eviction process and not have to wait longer

[00:09:42] [SPEAKER_00]: If it's a good tenant and they're like hey, I can do a payment plan

[00:09:46] [SPEAKER_00]: Because I'm behind and I can pay you X amount on the

[00:09:51] [SPEAKER_00]: Eighth of the month and X amount on on this date and I'll say okay that's fine

[00:09:55] [SPEAKER_00]: And I'm still gonna put that notice on the door on the fifth day the third late and then when they pay me on the eighth

[00:10:00] [SPEAKER_00]: Then that's gonna be fine and their next payments of 15th and that's gonna be fine

[00:10:04] [SPEAKER_00]: Per the new contract that we signed

[00:10:06] [SPEAKER_00]: But I'm not going to just trust they're going to pay it

[00:10:09] [SPEAKER_00]: I'm always going to start my processes if they don't pay here's the thing though

[00:10:13] [SPEAKER_01]: Here's the pairs of the flaw in that strategy

[00:10:16] [SPEAKER_01]: Once you take a partial payment it eliminates everything you did even a five-day notice

[00:10:21] [SPEAKER_01]: As a five-day notice is the promise to pay based on the outstanding balance at that time

[00:10:26] [SPEAKER_01]: If you take a partial payment even a dollar

[00:10:28] [SPEAKER_01]: It changes so

[00:10:30] [SPEAKER_01]: You would have to do a five-day notice each time

[00:10:35] [SPEAKER_01]: Right and and so you know if that's what you want to do fine

[00:10:38] [SPEAKER_01]: But the point is is what we've done when when people owe money is we have a some kind of a payment plan with them

[00:10:46] [SPEAKER_01]: Over several weeks to try to work with them

[00:10:49] [SPEAKER_01]: This is exactly what flux does it's exactly what Apple pay later does it allows them to

[00:10:55] [SPEAKER_01]: Kind of finance that over a period of time

[00:10:59] [SPEAKER_01]: But I do agree with your point that

[00:11:02] [SPEAKER_01]: There are lots of times where tenants say I'm going to I'm going to I'm going to and then that day passes and they don't

[00:11:09] [SPEAKER_01]: And then you get you do fall behind so

[00:11:14] [SPEAKER_01]: You know if if they don't come in by the fifth let's well actually reds do on the first let's just be clear

[00:11:20] [SPEAKER_01]: Reds do on the first there's a grace period

[00:11:22] [SPEAKER_01]: At least in in our leases there's a grace period that they have and then late fees start

[00:11:28] [SPEAKER_01]: On the fourth or the fifth of the month depending on the state

[00:11:33] [SPEAKER_01]: And so you first got to do that

[00:11:37] [SPEAKER_01]: The the right thing to do is to actually issue a five-day notice on this second

[00:11:43] [SPEAKER_01]: Then go meet with them

[00:11:46] [SPEAKER_01]: Because now to your point you got the clock is ticking and you've got the five days

[00:11:51] [SPEAKER_01]: They know that there's a five-day notice to affect and and that could change

[00:11:56] [SPEAKER_01]: If they pay but the minute they pay anything

[00:11:59] [SPEAKER_01]: The game will games games changed you have to re-re

[00:12:05] [SPEAKER_01]: Issue all the norths is again so

[00:12:07] [SPEAKER_01]: So that's why but again

[00:12:10] [SPEAKER_01]: You know it's it's a matter of do you are you requiring full payment?

[00:12:15] [SPEAKER_01]: Only then that process works or if you're doing partial payments then that process doesn't work

[00:12:20] [SPEAKER_00]: But I think it's yet important to know you know with the partial payments

[00:12:23] [SPEAKER_00]: You want to do a separate a done to the leaf

[00:12:26] [SPEAKER_00]: Because if you take even a dollar and some of you guys that where they pay an auto pay you have to think of this

[00:12:32] [SPEAKER_00]: If you take even a dollar you can't evict that month period

[00:12:35] [SPEAKER_00]: So unless you have an amended lease that you sign and they sign that states that they're going to make these

[00:12:41] [SPEAKER_00]: Partial payments on these days

[00:12:43] [SPEAKER_00]: Now you do have a question for you can so

[00:12:45] [SPEAKER_00]: How because I see this a lot with with the newer landlords right there they get pushed around by their tenant

[00:12:51] [SPEAKER_00]: So say that your tenant makes a

[00:12:54] [SPEAKER_00]: You know a contract to make you partial payments and then they start missing those payments like at what point are you like for not dealing with a

[00:13:01] [SPEAKER_01]: Sanymari really good

[00:13:02] [SPEAKER_01]: A couple things guys

[00:13:05] [SPEAKER_01]: You didn't know that whatever you decide you're gonna do you have to be consistent from tenant to tenant

[00:13:11] [SPEAKER_01]: That's very important from a fair housing

[00:13:14] [SPEAKER_01]: So

[00:13:16] [SPEAKER_01]: The way to do it is if somebody let's say somebody owes you a thousand bucks and they're dark

[00:13:22] [SPEAKER_01]: They don't do anything and you put a five day notice on their door on the second because rents to on the first

[00:13:29] [SPEAKER_01]: It's late after a certain period, but it's due on the first so it's not paid by the first

[00:13:33] [SPEAKER_01]: You can in our lease at least you could put a five day notice on on the second

[00:13:37] [SPEAKER_01]: So now they're gonna typically that's when they come in

[00:13:41] [SPEAKER_01]: Okay

[00:13:42] [SPEAKER_01]: Now a smart tenant comes in before and says, you know, I've got some financial problems and they're trying to figure it out

[00:13:48] [SPEAKER_01]: But not all of them do someone coming with it with the notice and that's the time to sit down now

[00:13:54] [SPEAKER_01]: If they make

[00:13:56] [SPEAKER_01]: You know if they say I'm gonna pay you in three payments the minute you take a payment you should always take a payment right then

[00:14:03] [SPEAKER_01]: Yeah, don't worry dude. So take a payment right then now it basically

[00:14:07] [SPEAKER_01]: Eliminate set five day notice that's that's old news

[00:14:12] [SPEAKER_01]: Now you're who are there's a little bit of faith right and the tenants gonna be pissed if you issue another notice for the balance do so

[00:14:20] [SPEAKER_01]: This is where trust comes in this is where

[00:14:24] [SPEAKER_01]: You know the problems to pay peace comes in and the addendum

[00:14:28] [SPEAKER_01]: You're gonna have them sign something and you're gonna hope that they don't and what's got to be clear in the in the promise to pay

[00:14:37] [SPEAKER_01]: There has to be something that says if you don't make this second payment

[00:14:40] [SPEAKER_01]: We're gonna then move forward, you know tore to fiction

[00:14:44] [SPEAKER_01]: They're gonna have to understand it but

[00:14:47] [SPEAKER_01]: That's the right way to do it what you don't want to do in my opinion you don't want it

[00:14:53] [SPEAKER_01]: If somebody's coming in on the second third or fourth or fifth they have to pay something

[00:14:56] [SPEAKER_01]: Period right so if it's a thousand bucks they should pay you something

[00:14:59] [SPEAKER_01]: If they don't have the money to pay you then then you should probably dig in a little bit deeper

[00:15:06] [SPEAKER_01]: The other thing you can do but I don't always recommend it as you can go into their deposits

[00:15:12] [SPEAKER_01]: If it's a temporary situation so let's say they paid 1500 or 2000 dollars

[00:15:17] [SPEAKER_01]: It got sitting in some kind of a deposit

[00:15:20] [SPEAKER_01]: You could actually use part of that, you know you could credit part of that probably depending on your state depending on your state

[00:15:25] [SPEAKER_01]: You know it's pending so I'm just saying these are options right but whenever a tenant comes in and pays a partial

[00:15:32] [SPEAKER_01]: I mean it like if a tenant really understood land or ten a law

[00:15:36] [SPEAKER_01]: If they owe the thousand dollars and they came in and you gave 50 bucks to the all-easing agent or our manager and they cashed it

[00:15:43] [SPEAKER_01]: You they would have to start to process over yeah, and and so you know that's just the way it is so

[00:15:49] [SPEAKER_01]: So be cognizant of what the partial payments are

[00:15:52] [SPEAKER_01]: There's nothing wrong with that but just understand

[00:15:55] [SPEAKER_01]: That you could be don't forget they owe the fall amount again in 30 days so if they're going to be slowly getting that you might

[00:16:03] [SPEAKER_01]: You might do this might be turning into something where you're essentially

[00:16:08] [SPEAKER_01]: Accepting partial payments for a long period of time

[00:16:11] [SPEAKER_00]: Yeah, and I just see you know small landlords get raped over the coals with this stuff

[00:16:15] [SPEAKER_00]: You know if they're not paying you they're not paying you

[00:16:17] [SPEAKER_00]: And tenants know a lot of tenants you know

[00:16:20] [SPEAKER_00]: Especially those that have been evicted before or have issues you know have had issues before

[00:16:24] [SPEAKER_00]: They know that if they give you 50 bucks you can't evict them for the month

[00:16:27] [SPEAKER_00]: So I know so many people that have taken partial payments and not really knowing that you know

[00:16:31] [SPEAKER_01]: They're just happy to get some money right but at a landlord you could remember you could away fees

[00:16:36] [SPEAKER_01]: You can away late fees and there's all kinds of stuff you can do to help them out like the last thing we want

[00:16:42] [SPEAKER_01]: I do not want late fees like period like that's ridiculous

[00:16:47] [SPEAKER_01]: They're there obviously to penalize people that are not communicating or not paying you

[00:16:53] [SPEAKER_01]: Set her but we don't want it. We don't want them we would rather have the tenants pay and you know

[00:16:57] [SPEAKER_01]: No one I will tell you no one wants to evict right?

[00:17:00] [SPEAKER_01]: I well maybe a very small percentage of the people you know or there aren't power trips do

[00:17:04] [SPEAKER_01]: But at the end of the day if a tenant's coming coming in and saying listen

[00:17:09] [SPEAKER_01]: I got this scenario. I have a medical or I have this or I have that or I lost my job and you know

[00:17:15] [SPEAKER_01]: I've got another one right around the corner, you know the trust me you probably heard lots of stories

[00:17:20] [SPEAKER_01]: But the reality is is I think you should

[00:17:22] [SPEAKER_01]: This is a time you gotta give somebody a little bit of slack period. I just believe that and and you got to work with them and tell them

[00:17:29] [SPEAKER_01]: It'll work with you again if they give them the benefit of the doubt

[00:17:33] [SPEAKER_01]: Get work on a promise to pay and that is exactly don't forget the words promised to pay

[00:17:39] [SPEAKER_01]: So they pay something then there's a promise to pay if they make that next payment

[00:17:42] [SPEAKER_01]: You're probably good to go if they don't then you got a what if you really lost maybe 10 days

[00:17:48] [SPEAKER_00]: But if they don't you don't rain and go she ate again. Oh, I'll pay you and three to you know

[00:17:54] [SPEAKER_00]: Because I do see this happening a smaller landlord's like you have to grow a pair and you have to be like no

[00:17:59] [SPEAKER_00]: This is it, you know like because a lot of times tenants if they see that your soft especially as a private landlord

[00:18:05] [SPEAKER_00]: Then they're like oh like like some tenants even look for private landlords because they don't want to deal with management companies because they know

[00:18:11] [SPEAKER_00]: Private landlords can be more of a pushover and management companies are going to have real stringent

[00:18:16] [SPEAKER_00]: lot, you know real stringent rules so

[00:18:19] [SPEAKER_00]: Something else I want to bring up because it we're gonna see this here is what if your tenant loses their job?

[00:18:24] [SPEAKER_00]: So I've seen a lot of posts on boards where you know landlords like when my tenant lost their job but too bad like they got to figure it out

[00:18:31] [SPEAKER_00]: Now

[00:18:33] [SPEAKER_00]: I look at a little different. How do you look at that?

[00:18:37] [SPEAKER_01]: Well if you can't pay your car payment

[00:18:39] [SPEAKER_00]: You lose your car

[00:18:41] [SPEAKER_01]: How do you look at that?

[00:18:44] [SPEAKER_00]: I look at it like I'd rather my tenant I've had this happen you might have heard me talk about it on here before

[00:18:49] [SPEAKER_00]: I'd rather than tell me they lost their job give me a 30 day notice

[00:18:53] [SPEAKER_00]: Me get it re-run into somebody that can pay and get a good percent. I agree with that

[00:18:57] [SPEAKER_00]: I'm not trying to hold them in a lease. I'm not trying to charge them a million dollars in fees so that they're like screw you

[00:19:03] [SPEAKER_01]: Day just what position of our apartments backs that we can re-run him into somebody else to campaign

[00:19:08] [SPEAKER_01]: We you know nobody wants to penalize the tenant the I will tell you there's a couple of the things that people should be looking at

[00:19:14] [SPEAKER_01]: These are popping up everywhere in it in a very good way

[00:19:18] [SPEAKER_01]: There's a homeless prevention program just google that on the internet

[00:19:23] [SPEAKER_01]: It's both state and federal there's

[00:19:26] [SPEAKER_01]: There's another one called helping Americans find help and

[00:19:31] [SPEAKER_01]: That's another one dot org and there's also us a dot gov emergency

[00:19:36] [SPEAKER_01]: So these are there

[00:19:39] [SPEAKER_01]: When when when when when the pandemic hit

[00:19:43] [SPEAKER_01]: Our community managers went out and and and looked for churches and they looked for nonprofits and they looked for things like that

[00:19:50] [SPEAKER_01]: They could help our tenants and that worked really well

[00:19:53] [SPEAKER_01]: I mean imagine imagine a man Lord in our case our property manager going out into the community

[00:19:59] [SPEAKER_01]: I remember we did this at Austin. We did this at San Antonio. We did this in Dallas

[00:20:03] [SPEAKER_01]: And they went out and they found funds at the local churches and things like that and they got active

[00:20:09] [SPEAKER_01]: They got active because they're like we don't want we don't know

[00:20:12] [SPEAKER_01]: Now that's over above that's not necessarily property managers job

[00:20:16] [SPEAKER_01]: But I want you to know that there are resources out there more than you know

[00:20:22] [SPEAKER_01]: To prevent homelessness and you know because essentially

[00:20:27] [SPEAKER_01]: It's kind of a harsh word, but in a lot of cases that's that's where some people are

[00:20:32] [SPEAKER_00]: They're right at that point. Yeah, but I personally just don't think that's your job is only at Lord

[00:20:38] [SPEAKER_00]: I feel like that's their job as a tenant to figure it out for themselves

[00:20:41] [SPEAKER_01]: I totally get that you feel that way. I'm telling you that still doesn't solve the problem if they don't do it

[00:20:46] [SPEAKER_01]: So

[00:20:47] [SPEAKER_01]: You know we feel that we would want to help our tenants if we can if we have the time even though it's not our job

[00:20:54] [SPEAKER_01]: We're trying to keep a tent in there. We're trying to help them and we're trying to build a relationship with them

[00:20:59] [SPEAKER_01]: We want them to pay even if they have to get it from someone else

[00:21:02] [SPEAKER_01]: So but you're right

[00:21:03] [SPEAKER_01]: You could take the black and white and say it's not my job. Well, I also think it's harder when you're small landlord

[00:21:07] [SPEAKER_00]: And you only have three properties and you have a mortgage

[00:21:10] [SPEAKER_00]: It's very different than MC companies that has thousands of tenants and thousands of properties

[00:21:15] [SPEAKER_00]: To write that off a lot of landlords

[00:21:18] [SPEAKER_00]: They can't afford to pay their mortgage while this person's living there and not paying right

[00:21:24] [SPEAKER_01]: Precisely why the landlord or the property manager might want to get involved to help the tenant

[00:21:28] [SPEAKER_01]: That's exactly why because a big company like ours you're right we can't absorb it so

[00:21:33] [SPEAKER_01]: You know, I'm just saying that the

[00:21:36] [SPEAKER_01]: There are resources in every community to help people that can't be rent. That's it

[00:21:42] [SPEAKER_01]: I just know that for a fact we've been through it for 30 years

[00:21:47] [SPEAKER_01]: Is it the landlords response building? Absolutely not is it the property managers? No

[00:21:53] [SPEAKER_01]: Is it the tenants? Yes, but can you help them understand where the resources are of course?

[00:21:58] [SPEAKER_01]: Can you understand where they are of course does it help the whole situation? Yes, so you know that's what I mean by

[00:22:05] [SPEAKER_01]: You know

[00:22:06] [SPEAKER_01]: Just being a little proactive because again we're trying to keep the tenant in there

[00:22:12] [SPEAKER_01]: Right and if if we can get somebody to help pay help them

[00:22:17] [SPEAKER_01]: You know you never know where that can go

[00:22:19] [SPEAKER_00]: So if you guys want to

[00:22:20] [SPEAKER_00]: Tenant checklists that we have just go to invest with MC dot com forward slash tenant checklists

[00:22:26] [SPEAKER_00]: And this will help you if your tenant is not paying rent

[00:22:36] [SPEAKER_00]: So now it's time for the MC a company update

[00:22:40] [SPEAKER_01]: Well, they're like one on that's for sure like

[00:22:43] [SPEAKER_01]: Well there's a few things one we just put a property in escrow yesterday

[00:22:48] [SPEAKER_01]: Nice property value ad hasn't been touched same owner for over 20 years

[00:22:52] [SPEAKER_01]: Prices have come down a lot on multi-family so

[00:22:56] [SPEAKER_01]: That's super exciting that deal will probably come out in the next three or four weeks we got

[00:23:01] [SPEAKER_01]: You know we have to go through due diligence. Well, we're gonna make sure the seller's telling the truth on the on the numbers

[00:23:07] [SPEAKER_01]: We got a development deal coming out Mason rats. It's gonna be hitting hitting soon

[00:23:13] [SPEAKER_01]: And those of you are on the credit investor list you'll you'll be able to see that you get the link

[00:23:17] [SPEAKER_01]: You will look at the business plan all that stuff or work it on that now that's kind of the next one

[00:23:22] [SPEAKER_01]: We're gonna break round on that next year

[00:23:24] [SPEAKER_01]: We have two properties under construction you guys might know that they're both in lease up

[00:23:30] [SPEAKER_01]: That's kind of exciting we're also doing a filming we're going to Tucson

[00:23:33] [SPEAKER_01]: We're gonna film a property that we stabilized and put permanent down on it

[00:23:38] [SPEAKER_01]: Then we're going to another one that's

[00:23:40] [SPEAKER_01]: Almost stabilized what that means is we're 75% occupied but not 75 collected

[00:23:46] [SPEAKER_01]: And we're putting permanent down on and then we're going to another one called a royal that's about 30% least and then we're going to the next one Mason

[00:23:52] [SPEAKER_01]: Which is just third. Oh, we're gonna show the progression

[00:23:57] [SPEAKER_01]: So that's cool and

[00:23:59] [SPEAKER_01]: You know we're actively actively doing a recap on a bunch of projects

[00:24:03] [SPEAKER_01]: so

[00:24:04] [SPEAKER_01]: You know the real issues that we have right now are

[00:24:07] [SPEAKER_01]: Our operational you know trying to keep the properties full

[00:24:11] [SPEAKER_01]: Trying to keep the expenses down like property taxes insurance and and all those things

[00:24:16] [SPEAKER_01]: So there's a there's a fair amount of work around operations and then right now

[00:24:20] [SPEAKER_01]: We're putting the budgets together for for 2025

[00:24:23] [SPEAKER_01]: Believe it or not I know we're in September, but you know if you have capital projects that you want to spend money on like new roofs or paint or

[00:24:31] [SPEAKER_01]: You know new gym equipment and all that kind of stuff has to be bit out and then x60 days

[00:24:36] [SPEAKER_01]: So all those things were working on right now

[00:24:39] [SPEAKER_01]: To try to put our budgets together for 2025 and and make sure that we're managing and a high level so

[00:24:46] [SPEAKER_01]: All hands-on deck everybody's busy and this week. We have our volunteer day which is fun. So

[00:24:51] [SPEAKER_01]: You guys might know

[00:24:53] [SPEAKER_01]: We we do um we have a full-time director of philanthropy in our company and we have had for a long time and last year we gave to 72 charities

[00:25:03] [SPEAKER_01]: But we the whole company takes one day and it's a week and we're working at a food bank

[00:25:09] [SPEAKER_01]: So that's kind of cool. We shut the doors on down everywhere corporate office every property is closed

[00:25:14] [SPEAKER_01]: And we go on work in the community so that's really fun

[00:25:18] [SPEAKER_00]: Absolutely and if you guys are interested in becoming an accredited investor or being able to see these deals

[00:25:24] [SPEAKER_00]: The best thing to do is go to invest with mc.com for slash podcast and then you will be the first two get all of that

[00:25:31] [SPEAKER_01]: Or just jump on our newsletter and keep current with all the stuff we got going on too

[00:25:35] [SPEAKER_01]: That's another way to if you're not ready and you just take a look at what we got going

[00:25:39] [SPEAKER_01]: We got a lot of stuff going on over the hood. It's fun

[00:25:43] [SPEAKER_00]: I think that's I think that's it for this week and we'll see you guys that's it