Local property owners waiving late fees, making payment arrangements with tenants during pandemic
Rent was due Wednesday for Spokane-area residents and business owners, and for the first time in their lives, thousands of them didn’t know where the money was going to come from to pay it.
Thrust into the ranks of the nation’s unemployed millions by shutdowns related to the cornonavirus pandemic, people are finding uncertainty has suddenly become the norm.
While the city of Spokane has a moratorium banning evictions and late fees through April 30 for commercial and residential tenants, landlords still are expecting monthly rent payments.
But some area property owners are taking steps to work with tenants by making payment arrangements and waiving late fees, especially for those who live outside city limits.
“It’s obviously not a normal situation that the tenant can plan or account for, so from the beginning, I told them I’m not going to charge late fees during this time and, also with payments, I’m asking they please contact us and let us know they are going to be struggling and we will work with them to split up payments,” said Adam Cunningham, managing broker at Call Realty Property Management. “I feel like that’s the right thing to do.”
The Spokane Valley-based company, which manages more than 500 properties in the region, also created a giveaway contest for tenants via its Facebook page with prizes, such as $500 off May rent and gift cards for local businesses. Tenants earn entries by paying rent on time, calling the office to make payment arrangements and leaving reviews on the company’s social media platforms.
“This is an opportunity for us to have a relationship with our tenants and work with them as opposed to creating a greater divide by standing firm with what has been in the past,” Cunningham said. “We want to help people out. I’m nervous because we are going to be affected by this. I don’t get paid if rent doesn’t come in, but I wanted to do what I can.”
Spokane Valley-based Moland Management Co., which specializes in single-family rentals, apartment communities and duplexes, is also waving late fees for residents affected financially by COVID-19.
“Unfortunately, we can’t waive rent, but we will work with residents to have it paid back over time when it can be,” said Kim Meredith, property manager and designated broker at Moland Management. “A majority of our owners understand the times that we are in and want us to work with residents to keep them in their homes and safe.”
Although building owners aren’t waiving rent, they are working with tenants on a case-by-case basis on lease modifications to temporarily reduce rent payments by adding the remaining rent balance toward the end of the lease, among other things, said Gordon Hester, president and CEO of Kiemle Hagood, which manages commercial and multifamily properties in the region.
Property owners, who also have to pay for utilities and building maintenance, try to help tenants stay in their units during the coronavirus pandemic, he said.
Hester encourages renters to communicate with landlords if they are facing financial difficulty.
“For the most part, building owners are understanding with the challenges of rent and are flexible on waiving late fees to keep tenants in their homes and get the base rent covered,” Hester said.
In addition to Spokane’s eviction moratorium for commercial and residential tenants, Gov. Jay Inslee issued an order prohibiting residential evictions for failure to pay rent that is in effect until April 17. A Spokane County Superior Court judge also issued an emergency order placing a stay on eviction proceedings through April 27.
In a Monday news conference with Inslee, Attorney General Bob Ferguson said his office has received complaints about landlords attempting to work around the state moratorium and evict tenants.
The Coronavirus Aid, Relief and Economic Security Act, adopted by Congress last week, contains a measure that prevents evictions for 120 days on federally-backed properties.
Terri Anderson, co-executive director of the Tenants Union of Washington State, said she would like to see a state moratorium that is uniform with the CARES Act measure preventing evictions for 120 days.
Anderson would also like to see a moratorium for lease breaks, noting she’s received several phone calls from local college students who remain in a lease although they’ve had to move back to their hometowns and finish school online becaues of the coronavirus pandemic.
Anderson said it’s important to ensure the safety of the community by observing health orders and working to keep tenants in their homes.
“The most important thing is that everybody stays in place,” she said. “We don’t want to risk any more people getting the coronavirus, and we don’t want it to affect families.”