BUDGETING TO PAY RENT ?

COVID-19, has shut down all of NYC and with that we are fearful that people will loose their jobs, and consumer confidence will also dwindle. For the New Yorkers who won't be able to pay their rent, below are some take aways. Contact me to review your individual concerns, or Jamie Heiberger whom is giving free consultations through out the month of April on interpreting the law, and what is enforceable in your lease during this economic crisis. 

Residential Leases
Governor Cuomo issued the tightest shut-down measures yet, he announced that the State of New York would be expanding its 90-day moratorium on evictions to commercial tenants. Read More here Remember courts are closed for 90 days, no evictions can take place.

Residential Owners & Mortgage Relief
90 days of no foreclosures, you don't have to pay your mortgage. You will have to ask for a deferral through your lender. If your mortgage is not paid, you will not get any derogatory credit marks. Banks are enacting a complete freeze up until 90 days, and after 90 days your payment schedule will be required again.

As for maintenance, let's be honest, we foresee a lot of people having trouble paying their co-op maintenance if they're anticipating getting laid off. Also note, State Governor Cuomo also announced today he will instate Paid Sick Leave for all employees under mandatory or precautionary quarantine.  Communicate to management and your co-op board if your foresee not being able to pay your maintenance. If in need to sell, I'd be happy to work with you.

As a Landlord, right now you NEED to Compromise

• Force Majeure clause in many leases speaks to " unforeseeable circumstances that prevent someone from fulfilling a contract" . It is arguable that at this time of crisis, many tenants can get out of their leases by claiming COVID-19 has caused serious hardship and they need to close their business.

• As any landlord of either commercial or residential, you should try and negotiate terms at this time than to loose a tenant. Work with your tenant on a rent reduction until they are able to reopen before aggressively loosing a tenant. Ask your tenants to share their hardship with you so you understand what's happening.

• Landlord's should seek legal advise on using a security deposit as a month's rent, as many leases explicitly don't allow for that. Ask me to put you in touch with my preferred RE Attorney,

• Share this List Of Coronavirus (COVID-19) Small Business Relief Programs with your tenants.