Advise please !

What alternatives can we offer to our renters? Due to the bad economy they are not selling or fabricating,therefore they are not having the same income as before as a result they are not paying rent and very soon we will not have money to pay the mortgage. Please advise.
Thank you for your time.
In Leasing Property - Asked by Magda V. - Mar 15, 2009
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Answer(s)

Joseph B.
Owner/Investor
Norwalk, CA

I am in California, and I have been facing the same issue as you have. The only solution that I came up with, is have them pay weekly installments. It is a pain-in-the-but, however though it is a lot better than an eviction, and a lot better than a vacancy, espescially if the tenants takes care of your unit.
Please advise, how many tenats are in distress. If its less than 30% of your building units, then i suggest to evict them, and get someone who can bring you the income to pay off your mortgage.

Mar 16, 2009
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Ian J.
Broker/Agent
Ocala, FL

You have several options.
Number 1 is to work with your lender to reduce your payments any way you can. If they are unwilling, shop around, see link below.
If you cant reposition your mortgage, you will have to take rent consessions or you will not make your payments.
Bear in mind that the value of your property is usually based on a Cap Rate which is a function based on income....the less your NOI is the less your property is worth.
If your vacancy levels increase too much, you wont even be able to sell your asset if you get backed into a corner or try to re-finance.
Seek out the assistance of a CCIM designee in your area, look one up in your area on their web site, see below.
Good luck.

Mar 26, 2009
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