As a real estate investor, it may seem like the bulk of the COVID-19 stimulus packages and protections have benefitted tenants rather than rental property owners. But the recent plan can actually be a win-win for both.
This relief package, which was passed as part of H.R. 133, The Consolidated Appropriations Act, can help tenants to remain in their rentals, as well as landlords who are paid both back and current rents that are due.
In addition, this legislation can provide added taxpayer relief, which includes residential real estate investors, by way of a tax rebate – which is based on income – and the potential for other tax credits, too.
Through this Emergency Renter Assistance Program, tenants could obtain up to 12 months’ worth of rent payments, along with payments for utilities – and possibly, if needed, an additional three months of assistance
The owners of rental properties who qualify will be paid directly by the government. However, if this monetary assistance is declined by the real estate investor, the funds can then be paid to the tenant, which allows them to make rental payments to the landlord.
It is up to the renter to submit the application for assistance with this program. In addition, there are some other qualification criteria, including the ability to demonstrate that one or more of the members of the household would be at risk of becoming homeless without this assistance. The tenant(s) must also be in arrears on rents that have accumulated during the COVID-19 pandemic.
As a residential rental property owner, you may already have a full plate when it comes to managing and maintaining your investments. So, in order to ease up on your time, hiring a professional property management team could be beneficial.
If you own residential investment property(ies) in Central Florida and you’d like more information on how a property manager could help, contact us and we’ll answer any questions that you have.