How do landlords recoup losses suffered from tenants that stopped paying rent during the pandemic? The COVID Relief Bill provides funding for commercial real estate investors. If you are owed money, it’s time to collect it. Here is a quick breakdown of what programs are available, who is eligible, and how to apply.
Federal Relief for Landlords
One of the components in the $25 billion COVID relief bill is the Emergency Rental Assistance Program. This federal program is available to landlords and prospective apartment investors. There are 4 key aspects for landlords:
1. Renters are eligible for twelve months back rent, plus more if you meet certain requirements.
2. Payments can be distributed directly to landlord. This is a crucial component because if it was given to the tenant, many would not use it to pay rent.
3. To qualify for compensation, you must prove:
- Income loss due to COVID
- Significant expenses because of COVID-19
- Potential for you to become homeless
- Qualifying income levels
Most renters affected by this pandemic will qualify.
4. Funding is funneled to and distributed by state and local governments, not through the Treasury.
State Relief for Landlords
Since federal money is being funneled to the states to distribute through COVID-relief programs, you will need to research how to apply in your own state. Here’s how to go about it using Texas as an example:
Texas has $1.3 billion for their program called the Texas Coronavirus Relief Bill Rental Assistance Program which you can access on their website texasrentrelief.com. This relief program covers 11 months back rent and landlords can apply online on behalf of tenants. Tenants can apply for the program as well, but it is best to have your property managers fill out the forms on their behalf. All they need is the tenant’s signature, and then 30 days after submitting you will receive your money.
Your state will have something similar with links that you can follow to apply online. And if you are new to apartment investing, research these programs in your state so that when you close your deal, you can immediately apply for these funds if need be.
County/City Relief for Landlords
The states are also directing money to individual cities and counties. For example, in Houston TX you can apply for relief from the BakerRipley COVID-19 Rental Assistance Program at bakerripleyrenthelp.org. You may apply on behalf tenants but you must show proof they are behind in rent. In San Antonio you apply to the Texas Emergency Rental Assistance Program on the city website. As a landlord you can get the money yourself and receive it in 30 days.
