COVID-19 Resources &amp; Relief Programs for Landlords &amp; Investors
I posted this on a few other subreddits already, but thought it would be beneficial to people on here as well.

There has been a lot of discussion on what landlords and real estate investors can do to help them through the COVID-19 pandemic. 

As a real estate investor myself with 40 units, I can tell you that's it pretty obvious that no matter how prepared you were for a downturn, you will feel the negative impact of people struggling to pay their rent on time.

To help others find all of the help and resources in one place, we've put together a list of the most beneficial/relevant resources and relief programs available specifically to landlords and real estate investors.

Here is a summary of the most important ones:

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### **Working With Tenants Affected by the Pandemic**

This is a highly debated and controversial topic, but most investors and leading real estate investing publications are suggesting the following course of action:

1. **Let your tenants know about available relief programs.** There is a ton of programs, including unemployment, stimulus checks, rent/utility payment assistance, etc., that are available in all counties and states. Put together a written sheet with local information that you can readily give to each tenant in need.

2. **Ask for proof of financial hardship.** I wish this wasn't necessary, but some people may take advantage of this situation, especially since evictions in most states are postponed until further notice. Gently ask the tenant to provide evidence of being laid off, collecting unemployment, etc. [Here is a good template.](https://mokslaw.com/wp-content/uploads/2020/03/covid-19-request-for-accomodation-final.doc)

3. **Sign a written rent payment or deferment plan with the tenant.** The goal here is to be compassionate, flexible and understanding, but to also come up with a written agreement for how the tenant will pay their rent going forward. In most cases, this will involve deferring all or some of April-May (maybe June?) rent now and having the tenant pay it back over the next 6 or so months. [Here is an example](https://mokslaw.com/wp-content/uploads/2020/03/covid-19-repayment-agreement-final.doc) of what this may look like.

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### **Federally-Backed Mortgage Payment Deferral**

The CARES Act, a legislature recently passed by the US Congress, directs lenders holding federally-backed mortgages to suspend borrowers’ payments for 3 to 12 months if they have lost income because of the Coronavirus outbreak. This provision applies to both homeowners and landlords.

Contact your lender directly and mention this provision to start the process. Note, you have multiple options to repay the deferred amount, including lump-sum, increase monthly payments or tack on extra payments at the end of the loan.

[Read this post](https://www.investopedia.com/how-to-get-mortgage-relief-4800539) from Investopedia for more information.

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### **Commercial &amp; Private Loan Payment Deferral**

While there is no federal guidance or mandate regarding loan payment deferrals for commercial or private loans, we have heard that many commercial and private lenders are offering payment assistance and deferral on a case-by-case basis.

Contact your lender directly to see what they offer.

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### **Small Business Administration Disaster Loans (EIDL)**

The US Small Business Administration (SBA) is currently offering special disaster loans for small businesses with less than 500 employees, affected by the COVID-19 pandemic. These loans are designed to help businesses pay their payroll, rent, mortgage, utility and other operating expenses.

The current understanding is that these loans are available to most real estate businesses, contractors and self-employed professionals, including brokerages, agents, wholesalers, appraisers, property managers and inspectors. Individual landlords and real estate investors should also qualify in most cases.

Loan amounts are up to $2 million (although some sources say it's a lot less), with up to $10k in an up-front loan advance for those who qualify. Loan duration of up to 30 years with a 3.75% interest rate. The loan amounts used to be a lot higher, but were recently reduced.

Applications for these loans can be submitted through the [SBA website](https://covid19relief.sba.gov/#/). View the Small Business Administration’s [official guide](https://www.sba.gov/sites/default/files/articles/EIDL_Information_and_Documentation_-_3-30-2020_FINAL_2_pm.pdf) and [website](https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources) for more information and guidance about these loans.

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### **Tax Filing and Payment Deadline Deferral**

The US Federal Government has extended the 2019 federal tax filing and payment deadline to July 15, 2020. This should not only eleviate the stress of trying to finalize and file your 2019 tax returns, but also gives you 3 extra months to pay any taxes due for 2019 tax year.

Most states have now followed suit, but double-check with your state to be sure.

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### **1031 Exchange and Opportunity Zone Deadline Deferral**

The latest [guidance from the IRS](https://www.irs.gov/newsroom/irs-extends-more-tax-deadlines-to-cover-individuals-trusts-estates-corporations-and-others) regarding tax filing deferrals is understood to include extending deadlines for filing 1031 exchanges and opportunity zone investments, as explained by [Bisnow](https://www.bisnow.com/national/news/economy/nar-recent-irs-tax-deadline-extensions-benefit-1031-exchanges-103865).

For 1031 exchanges, investors who have to either identify or close on a property between April 1 and July 15 now have until July 15 to do so.

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### **Updated Rules for Using Retrievement Funds for Relief**

The CARES Act has also [modified several rules](https://www.grassley.senate.gov/news/news-releases/cares-act-retirement-provisions-faq) pertaining to IRA and 401(k) plan loans and early withdrawal penalties:

* The regular 10% IRA and 401(k) plan early withdrawal penalty is waived for amounts up to $100,000, withdrawn for COVID-19-related hardship in 2020
* The limit of the 401(k) loan program has been increased from $50,000 to $100,000 for the 2020 tax year
* Required minimum distributions from IRAs and 401(k) plans have been suspended for the 2020 tax year

This may be a last resort, but there is an opportunity to use your retirement funds for operating or emergency capital.

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### **Help for Airbnb and Vacation Rental Owners**

While long-term effects on the short-term rental industry are debatable, here are some things you can do right now:

* Reduce your vacancy rates as much as possible by offering discounts and being more flexible during this time
* Cut your expenses by eliminating welcome gifts, reducing amenities and subscriptions or applying for mortgage deferral programs, as discussed above
* If you’re an Airbnb host, apply for cancellation reimbursement under the $250 million [Host Relief Fund](https://www.airbnb.com/resources/hosting-homes/a/250m-to-support-hosts-impacted-by-cancellations-165) available for qualifying cancellations (up to 25% reimbursement of what you would normally receive from a canceled booking)
* Consider turning your short-term rental property into a long-term rental, at least for now, as the traditional rental market is not expected to be impacted as severely as the short-term rental market

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### **Additional Reading**

* [Resources for Property Owners and Agents](https://www.nar.realtor/coronavirus-resources-for-property-owners) from the National Association of Realtors is a great list of general recommendations and resources
* [List of Relief Programs Offered by US Banks](https://www.aba.com/about-us/press-room/industry-response-coronavirus), published by the American Bankers Association, is a comprehensive list of specific measures banks across the US are taking to help borrowers in need
* [COVID-19 Tax Resources Center](https://www.taxwarriors.com/en-us/covid-19-tax-resource-center-) by the Drucker Scaccetti tax services firm
* [Legal Guide for Landlords](http://www.marei.org/landlords-legal-update-from-attorney-julie-anderson/?fbclid=IwAR2dCTCDrW1ccneQL8uq6Kt00ibcGQEZLLHUwBF6cUh-kk9EmN2d_kwp1XI) by Julie Anderson, written for the Mid-America Association of Real Estate Investors, provides general legal guidance and advice for real estate investors

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Please let me know if I missed anything, or if there is any inaccurate information, so I can correct it.
[{"id": "fmxim7s", "text": "Thanks for compiling this info, much appreciated \u270a\u270a", "replies": [], "depth": 1}, {"id": "fmxutx0", "text": "Great directory of info! Thanks!", "replies": [], "depth": 1}, {"id": "fmyguth", "text": "Zero relief for small landlords with no mortgages who live off rent payments.", "replies": [{"id": "fmyjv9n", "text": "Yes, options for these investors are limited, unforunately.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fn00wkq", "text": "I've heard folks with small businesses but no employees (i.e. sole proprietor, family business, etc.) are kind of screwed and not able to get any SBA loans for their business, or at least not forgiven.  Is that everyone's understanding here?  I suppose their best route is unemployment / stimulus?", "replies": [{"id": "fn028l6", "text": "As far as I'm aware, you can apply for an SBA EIDL loan even if you don't have employees. Contractors, self-employed professionals and individual investors all qualify for these disaster loans if you've incurred losses due to the pandemic.\n\nYou may be thinking of another SBA loan program called the [Paycheck Protection Program (PPP)](https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp), which is a different type of loan available only to businesses with employees.", "replies": [{"id": "fn222d1", "text": "I guess the question is whether the SBA EIDL will be forgivable.\n\nI was just reading somewhere else a 1099 contract worker can now apply for PPP and pay themselves...and get it forgiven.  That I'm going to keep digging on.", "replies": [{"id": "fn3l08r", "text": "As far as I'm aware (and somebody please correct me if I'm wrong), EIDL loan are not forgivable.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]