Discover how to recoup losses you may have suffered from tenants that stopped paying rent. The COVID Relief Bill provides funding for commercial real estate investors but you need to act fast before these funds are gone! Here's a quick breakdown of who is eligible, what assistance is available, and how to apply so you can take advantage of this program:
Federal Relief Programs for Landlords
In January, Congress enacted a $25 billion COVID relief bill. A component in the bill is the Emergency Rental Assistance Program which is available to landlords and prospective apartment investors. In this federal program:
- Renters are eligible for 12 months back rent, plus more if you can prove it.
- Payments come directly to landlord, which is exactly what you want. You do not want it going to the tenants because they will not use it to pay rent.
- To qualify you must prove income loss due to COVID, that you have significant expenses because of COVID-19, there's a potential for you to become homeless, and lastly, that you have qualifying income levels. Most renters that have been most affected by this pandemic do qualify.
- Funding is distributed by state and local governments, not through the Treasury.
State Relief Programs for Landlords
The federal money is being funneled to the states to fund COVID-relief programs. I picked Texas as an example of how to get the money from your state because we have a lot of deals there. They have set aside $1.3 billion in relief funds for their program called the Texas Coronavirus Relief Bill Rental Assistance Program. You can access this relief program on their website texasrentrelief.com.
- Landlords apply online on behalf of tenants. The tenants can apply for the program as well, but in our properties, we have our property managers apply for them. We just need the tenant's signature, then submit the application and in 30 days we're paid.
- This program covers 11 months back rent, which is substantial.
Research your own state: Each state has its own landlord relief program. Simply search COVID- relief funding for renters or landlords for your state and the program will pop up. Follow the links to apply online.
County/City Relief Programs for Landlords
The states are also directing money to individual cities and counties. Again, I'm going to choose two cities where we have deals:
- Houston TX: You can apply for relief from the BakerRipley COVID-19 Rental Assistance Program. Their website is bakerripleyrenthelp.org. Now, again you apply on behalf of the tenants and must show proof that they're behind in rents.
- San Antonio, TX: In this city you can apply to the Texas Emergency Rental Assistance Program on the city website you can apply online as a landlord to get the money yourself and receive your money in 30 days.
Apply Now: Act now because money is limited! Last year we did the same thing under the Cares Act and within a few months the funds were depleted. It will probably happen again so if you are a landlord, and your tenants are behind on your rent, and you need help, apply now. The same thing applies for those of you who are thinking about apartment investing. Look up these programs in your state so that when you close your deal, you can immediately apply for these funds. Don't let this stop you from investing.
3 Key Tips to Remember!
- Fill out the forms yourself on behalf of the tenants. I can tell you from experience that they will not fill it out, so we have our property managers do it on their behalf. After filling out the forms and getting the tenants signature, we submit it and are paid in 30 days.
- Money is limited so apply now!
- Remember, the key to commercial real estate investing is perseverance. Perseverance is not a long race; it is many short races one after another. Know that this time we are in is a short race so let’s stick together. This too will pass.
For more posts on Commercial Real Estate Investing and COVID-19 check out: