How to Get a Rent Break During Covid-19
If you’re among the bajillion people who felt that riding out Covid-19 lockdowns might be easier, arguably safer, and definitely way less crazy-making outside of a major metropolis, you’re not alone. But what do you do with the apartment or house rental you left behind? Be prudent, for one: “We have no idea how long this will last, or if and when we will return to life as we knew it," says Lane Walsh, Broker and Owner of Dwell Denver Real Estate. "In regards to housing, if you can batten down your hatches, stop all unnecessary spending, and brace yourself for what might be coming, do that. My advice to clients has been to work closely and respectfully with their landlords, credit companies, etc." We spoke to experts in New York City and Denver for some salient advice around the questions you might be asking yourself about that abandoned home.
Can You Stop Paying Rent, or Ask for a Break?
“I would only seek to renegotiate rent if you have lost your job and are unable to keep paying the current price," advises Manhattan-based realtor Robert Khederian. "If the tenant is employed as before and made the choice to shelter elsewhere, then their case for renegotiating is weakened—it would probably be better to explore other options like subletting, assigning the lease, or breaking the lease.” Either way, communication is key. “If tenants can't pay their rent, they should go straight to their landlord and work out a plan, and they should absolutely ask for a rent break,” Walsh says. “So many renters have just stopped paying rent and won't even communicate with their landlord. We've had three clients with rentals this month where that happened, and we're putting the homes on the market because of it. The landlords are still responsible for their mortgage payment even if the tenant isn't paying rent, and they are in the same position as the tenants, so they are unloading their rental properties.”
If it’s a matter of not being able to come up with the cash, seek out your local options for tenant rent relief. The U.S. Department of Housing and Urban Development maintains helpful links to resources for tenants rights in each state; New Yorkers may want to check out this advice). Landlords can call their mortgage company to ask for forbearance if it's absolutely necessary.. “Just be sure that you fully understand what forbearance will do to your credit and your ability to borrow money in the future,” Walsh says.
Can You Break Your Lease and Move Out?
Making this decision requires looking closely at all that fine-print on your lease itself. “If you are certain you won't be returning for several months or the remainder of your lease, you have a few options,” Khederian says. “If you don't want to break the lease, you could either sublet or assign the lease if allowed in your agreement. Check your lease to know.” But, he says, be aware that you’d have to find a new tenant—and the pool of people seeking short-term rentals in cities is down significantly. “Your lease should be clear about how difficult it would be (and how much it would cost) to break. Every situation is very case-by-case, so think through the options and determine what works best for you.”
One telling anecdote, in Khederian’s recent experience: “I was just talking with a client sheltering in the Hamptons with a rental in downtown Manhattan who was considering assigning the lease, but ultimately determined it would make most sense for her to pay a fee of two months rent and break the lease.” Ultimately, says Walsh, “Read your lease carefully, know what you're responsible for, and come to your landlord prepared with a plan for what you can do and be prepared to honor the terms.”
...and Then Move Your Things to a Storage Unit?
“If folks are co-quarantining with loved ones, getting a storage unit is a great way to save money and retain their belongings,” says Walsh, who notes that having to buy all new household items makes zero sense if this is a temporary situation. “There will be an expansion after this quarantine period, and people will spread back out. Storage is a great alternative to liquidating your belongings.” Which begs the question...
Can You Move Without Being There?
If you’re willing to pay for the service, you can absolutely move from afar. “We offer a ‘contactless moving service’ 24/7/365,” says New York City’s Najah Ayoub, who owns Piece of Cake Moving & Storage with her husband Voyo. “The moving part of the service is performed as usual, the only difference is that the customer will need to provide access to their home, be available for a few video calls during the process with their moving foreman to confirm their items have been loaded and dropped off, and lastly sign their bill of lading—the formal document where the customer acknowledges all their items are accounted for and to agree that move is completed— electronically.”
Since the Covid-19 lockdowns began, Piece of Cake Moving & Storage has had hundreds of customers elect to use their contactless moving service. Their team’s safety efforts include everything from commercially sanitizing every inch of their moving trucks and equipment between moves, to providing their movers with disposable gloves and hospital-grade sanitizer. “In some cases, the customers have also used our complete packing process, where they have not been in the state or country to pack their own home. With our White Glove full packing and unpacking service, we can even pack your entire home and unpack your entire home at the next location, working closely with our moving consultant to ensure everything is exactly where you want it.”
Once again, be sure to consult with your building and landlord before starting the process. “I would first check with your landlord/management company if any COVID-specific protocols for moving out have been instated,” Khederian says. “Some buildings may have restrictions around move outs and who can/cannot enter the building.” Honestly, maybe contactless moves are the way to go, whether or not there’s a pandemic—anything to avoid recreating Ross & Rachel’s “Pivot!” scene IRL.
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