As the COVID-19 pandemic continues to impact our housing industry and the economy in unprecedented ways, we hope that you and your family are safe, healthy, and well. This is an ongoing disaster which has no rulebook, and we know it’s hard to keep up with the information that’s out there. Today, we want to help our San Francisco landlords understand what is happening in terms of renting out properties and collecting rent.
In San Francisco and throughout California, there is talk about modifying the stay-at-home order that’s in place and beginning to reopen the state in ways that are safe.
Here’s what you need to know as of May 6, 2020. We know that information changes almost daily, so check back with us if you have any questions about your unique situation or need some support or resources.
San Francisco Property Management: Eviction Moratorium in California
As you probably know, there is currently a ban on evictions. Right now, we aren’t sure about when the courts will open back up for landlords to be able to file an Unlawful Detainer on tenants who haven’t paid rent. Governor Newsom has issued an executive order that says courts cannot accept Unlawful Detainer actions until 90 days after the shelter in place emergency order is lifted. So, even when things begin getting back to normal in San Francisco, you’ll still have to wait 90 days for the courts to reopen.
Even when the courts do reopen, we can expect an extreme backlog of cases. While it may have taken a landlord two months to evict a tenant in the past, it will now be at least twice that before you can get your tenant removed. Not only will you have to wait longer, but it’s possible the courts will require you to make some concessions.
Furthermore, if you were in the process of evicting a tenant before all this happened, that tenant will now have an extra 55 days to respond to your Summons and Complaint. We aren’t sure what the legal landscape will look like once the order is lifted, but we know that even when evictions are permissible again, they likely won’t look the same as they once did.
Working with Your Tenants on Rent Collection
Because of the uncertainty and the delay around the eviction process, we think it’s a good idea to work with your tenants whenever you can. Most of your San Francisco renters will fall into one of these categories:
- Tenants who have not experienced a disruption in financial stability or income and can continue paying rent as normal.
- Tenants who have lost a job or had their hours and wages cut and want to work with you to pay what they can and stay in their home.
- Tenants who are going to stop paying and refuse to talk to you because they’re going to take advantage of the eviction moratorium.
If you have a resident who isn’t able to pay rent due to the coronavirus emergency, you have to expect you’re still going to have that tenant in place for the next six months at least. See what you can do about getting some of the rent paid. You can forgive what may be already overdue if they can make their May payment. You can ask for half the rent and defer the rest. You can find out when they think they’ll be able to catch up, and put a payment plan in place.
Be prepared to be flexible, and show compassion. If your tenants are going through a tough financial time, they’re probably emotional and stressed out. When you get in touch with them and provide an offer to help, they’re likely going to want to find a solution that helps everyone.
Talk to the tenant and find out what their unique circumstances happen to be. What can they pay and when can they pay it? Can they pay partial rent? Try to work something out.
San Francisco Property Management: Communicating with Tenants
