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Can't Pay Rent for September Due to COVID-19? Guide for Tenants and Landlords

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can't pay rent for september these are

the most

uncertain times we've had yet we're

going to give you an update

tell you where tenants can find money

and give you an idea what to do if you

can't pay rent

hey there christian walsh coldwell

banker wire associates

we specialize in helping tenants and

landlords buyers and sellers in

california

and we're here with another update

during these

uncertain times and we're going to tell

you why these are the most uncertain

of any of the months we've had yet i've

been doing these since the beginning

these updates every month

about not being able to pay rent and

i'll keep doing them until we don't need

them anymore

but these are tough times and tough

months ahead tune in and we're going to

fill you in on what's going on

so there is some good news since the

last video we're off the watch list as

of last sunday

that's the good news the unfortunate

news is when we look at

unemployment statewide things have not

gotten any better

so the 600 a week bonus that was put

into place by the cares act

is gone uh trump signed an executive

order to give each states

a boost it was supposed to be 400 that

was 300 from the federal government

and 100 from each state unfortunately

states

couldn't afford the hundred dollars like

california so they've been given

clearance to move ahead it's called the

lost

wages supplemental payment assistance

program through fema

and the state of california did receive

funds in order

to give an additional 300 a week bonus

to those on unemployment they have

enough funds for about three weeks

the unemployment claims have continued

to climb

last month there were 4.4 million

in california on unemployment insurance

and just last week there were 4.9

so a 500 000 increase in unemployment

claims

unemployment paid out last week 724

million

dollars per day this is a thousand

percent

10 times more than what was paid out per

day

during the great recession in 2010 so

still a lot of folks hurting for income

and this is definitely affecting rent

payments as well

so here's why i said these are uncertain

times so now let's talk about evictions

a topic very important to tenants and

landlords right now

so the judicial council on april 6 had

put in an emergency rule that prevented

any

new evictions from moving forward that

was commercial

residential for any reason at all other

than health and safety

evictions could not move forward it was

supposed to be in place for 90 days

after the

emergency order was declared over we're

still not even close to the emergency

being declared over

but the judicial council voted and has

said

that that rule for the eviction

moratorium is going to sunset on

september

1st what that will mean is evictions can

move forward

on september 2nd and that is

all evictions residential commercial

coven 19 or otherwise so all evictions

can move forward

on september 2nd now governor newsom put

into place an executive order

n7120 that allowed local municipalities

to extend the eviction moratorium only

for evictions

related to non-payment of rent due to

copa 19.

they are able to extend those to

september 30th

and there are many municipalities that

have done that across

california and i have a link below if

you want to search and see if yours did

that

so there's no federal eviction

moratorium the state eviction moratorium

looks like it's about to come to an end

there are some bills working their way

through california legislature

they have a deadline of of august 31st

so they're moving quickly here to get

these taken care of

and there's a few different ones that

may protect tenants may prevent tenants

from being evicted

due to non-payment of rent uh due to

covet 19.

so ab1436 which we've discussed

tenants would not be able to be evicted

until after april 21st

there's sb 1410 that's one that would be

voluntary between a tenant a landlord

the tenant would pay back the state and

then the landlord would get a deduction

on income taxes so that they could

recover some of those funds

but they wouldn't be able to do that

until 2024 so that's not really going to

help anybody right now

there is another compromise bill that's

working its way through

literally changing by the hour until we

hit this august 31st deadline

called the covet 19 tenant relief act of

2020

and we'll get you more details on that

but it's changing so quickly

we'll see if that one passes but

literally this is adding to the

uncertainty

people whether you're a tenant or

landlord you have no idea

if you're going to be able to stay put

or be evicted so this uncertainty is

unlike any we've had so far

every month previous you knew as a

tenant

you could stay put and landlords you

knew you couldn't get them out but we're

coming into a new era here

it looks like so we will see how this

plays out

all right so the part where we tell you

where you can find funds as a tenant

to help pay your rent and unfortunately

there's just not that much left right

now

we hate to report so we had talked about

the ppp the paycheck protection program

if you were a gig worker self-employed

etc you could apply for those funds

through the sba

that program is closed so you missed

your chance on that those funds you

could have used to pay rent but that's

gone

the sba still has the e-i-d-l i have a

link below you can still

apply for that that's for business

owners tenants and

landlords can actually apply for that

one so make sure if you haven't applied

for the eidl that you make sure

some local municipalities are offering

funds

i know this city of irvine for example

had a thousand dollars

that would go straight to the landlord

look for those funds when most of those

are gone

and then the federal stimulus payments

there is a chance we'll get another 1200

one or some variation of that but it's

not going to happen until

end of september at the earliest and

some folks i've

heard say that there may not be another

stimulus payment and if there is it

would be after the election

or maybe into the next year so i hate to

say it

places for additional funds have pretty

much dried up

but don't give up tenants don't give up

there's still opportunities out there

so if rent's not coming in for september

we have some things you can do

and our heart goes out to the tenants

because you've lost income and can't pay

and our heart goes out to the landlords

because not getting your rent

means you're losing income so we're very

sorry to hear this on both sides

tenants it's important that you remember

remember that as of right now

you still owe the back rent there's

nothing that has forgiven you from

paying this rent

there may be bills in the future but as

of right now you still owe it

so let's come up with a mutually

beneficial plan

so that you can repay the landlord and

get back on financial footing

so here are the options for a tenant and

landlord number one and one we do not

expect

is a waiver of rent so there's nothing

out there right now that's gonna waive

your rent

tenant it would be entirely up to the

landlord

to waive some or all of their rent and

we can't expect this early on there were

folks doing it

but we've been going on for a long long

time right now

so everybody needs those funds coming in

okay so number

two would be a partial delay of rent

so with this the tenant you're going to

pay some of the rent for the month

and then the landlord is going to defer

the other portion

the other one is a full rent delay so

that's number three

so in this case the tenant can't bring

anything to the table

and the landlord is going to have to

defer the rent going forward

and come up with a repayment plan for

all of the rent for september

don't forget number four the landlord

can use some of the deposit or all of

the deposit if they feel comfortable

to cover the rent that isn't being paid

and then there's nothing that states

that a landlord can't ask

for the money to cover the deposit in

the future

so the landlord can ask the tenant to

replenish the deposit going forward

all right more advice for tenants and

landlords tenants if you're not gonna be

able to pay the rent for september

reach out to the landlord now pick up

the phone make a phone call

send an email but please let them know

the rent's not going to be there

also be prepared to show documentation

that you've lost income due to covet 19

or

lost your job let them know that that's

the case

have something in writing from an

employer be able to show that you're

being

impacted by covet 19. important point

for both landlords and tenant

any repayment plan and we have a form

you can use

the coronavirus rent payment delay and

repayment program

agreement which is real catchy name i

know link down below

but you must document the repayment plan

so you're going to go ahead and use that

form

you're going to show what months were

missed you're going to show how much

rent was missed

how much rent is owed you're going to

come up with a repayment plan

and then you're going to show if any

deposit was used

so you're going to document everything

this needs to be signed by the tenant

it needs to be signed by the landlord

and both parties need

a fully executed copy last piece of

advice

and this one's for landlords i know you

need your money but come up with a

mutually beneficial

payment program it's unrealistic to

expect a tenant to all of a sudden be

able to cough up

two to three months worth of rent in

october november

so come up with a plan so they can

actually get you your money back

and then the last piece of advice let's

try not to judge and let's be

compassionate these are still tough

times for a lot of people

and like i said before just as a tenant

you've lost income when you don't pay

your rent

that's lost income for a landlord so

let's try to leave the judgments aside

let's be compassionate

let's get through this so that someday

everybody's paid back and we're all

doing better than we are right now

alright

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coldwell banker

wire associates and what's your name

gigi

gigi walsh thanks for tuning in take

care

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