What to Do if Your Income Dipped Due to COVID-19

 By Roxy Julian

Since the pandemic began, renters have been struggling to pay their debts, putting landlords in financially precarious positions. This is especially the case for individual landlords or those with small- to medium-sized rental spaces. Unlike larger real estate companies and REITs, many of these landlords rely on rental payments to get by, so the pandemic has cut them off from a valuable source of income. If you’re struggling with the same problem, read on for actionable tips on what you can do next:

Review Your Savings

It’s clear that the effects of the pandemic will linger long after it’s gone. Everyone will be dealing with various financial setbacks, but this is especially the case for landlords. Even so, it’s important to asses and adjust your savings goals accordingly, and the question of how exactly to do so depends on your current financial situation. If you’re one of the lucky ones that are currently employed, but could use a boost in savings, it’s time to start putting money into an emergency fund. Cut down on unnecessary expenses like takeout and gym memberships. Instead, put the extra cash in your emergency fund. We live in uncertain times, so it doesn’t hurt to be prepared. However, if you’re unemployed and your primary source of income was the rental payments, you’ll need to dip into your savings and start looking for income elsewhere. Just make sure to plot a budget and stick to it.

Seek Financial Support

The COVID-19 pandemic has affected landlords across the country, so local governments are pitching in to help.  Take advantage of grant programs that you are eligible for. The extra funding is sure to help sort out your budget. In addition to local grants, there’s also the CARES Act, which was passed last March to help unemployed Americans get by despite the pandemic. Although these benefits were to expire by 2021, a law has been passes to extend it for thousands of New Jersey residents. It promises an additional thirteen weeks of CARES Act benefits for unemployed Americans residing in New Jersey.

However, if you have debt, you’ll need to talk to your creditors to discuss your options. Many offer hardship program benefits for those experiencing financial losses from the pandemic. Otherwise, you can talk to them about extending your deadline, waiving fees, or plotting out a new payment plan.

Know the Rules Surrounding Tax Losses

The global economic crisis has caused real estate properties to run up tax losses for this year, and it’s reasonably expected to carry over to the next. Knowing what you can write off helps you stretch out your savings further, at least until you find another, more sustainable source of income. As per federal income tax guidelines, property managers can deduct mortgage interest, real estate taxes, and basic operating expenses from their taxable income. Basic operating expenses include utilities, insurance, and any form of repair or maintenance. There have also been multiple tax relief provisions, so make sure to read up on those and utilize them when possible.

The COVID-19 pandemic has muddied everyone’s financial plans, and landlords are bearing the brunt of this. Despite these hurdles, know that you have options. The important thing is to plot out your next steps carefully. And of course, don’t forget to look after yourself. These are challenging times for all of us.

Read More Information About COVID-19

NJ CVERAP II

NJ CVERAP IIThe State of New Jersey, through the Department of Community Affairs (DCA), has opened a $350 million rental assistance program to help COVID-impacted tenants with past due rent, future rent, and utilities. Note: You must be a current tenant.  While there...

read more

Read more News & Views.

6 Reasons You Need Access Control Systems At Your Property

6 Reasons You Need Access Control Systems at Your Property 1. Protect Your People: Access control systems offer a safe environment that your "people" will appreciate, thus bringing them peace of mind. If integrated with other security platforms such as security...

Can Accepting Rent On A Credit Card Be An Upside For Property Owners?

Can Accepting Rent On A Credit Card Be An Upside For Property Owners?When Governor Murphy signed a law on January 4th requiring landlords and property managers to accept credit cards as a form of payment from their tenants, there was collective apprehension from...

News & Views April/May 2021

Features Acceptance Of Credit Cards For Rent Payments Bill Signed Into Law Auto Out Cooktop Fire Suppressor Can Help Protect You From The Leading Cause of Apartment Fires What Do We Look For When Agencies Conduct An Inspection Of Your Building(s) Mold Preventative...

News & Views February 2021

Features Discover 6 Essential Reasons Why Your Property Needs An Access Control System What To Do If Your Income Dipped Due To Covid-19 Accounting For COVID-19 Rent Concessions Columns President’s Message Legal Corner Form of the Month Tax Corner Quick Tips Super...

Landlord Tenant – Report & Recommendations Of The Judiciary Special Committee On Landlord Tenant -Publication For Comment

LANDLORD TENANT – REPORT AND RECOMMENDATIONS OF THE JUDICIARY SPECIAL COMMITTEE ON LANDLORD TENANT – PUBLICATION FOR COMMENT (njcourts.gov)

What To Look For When Agencies Conduct a Fire Inspection of Your Building?

What To Look For When Agencies Conduct a Fire Inspection of Your Building?By John Thomas As a retired Fire Marshal, I have conducted a number of commercial and residential building inspections.  One of the most important elements of emergency equipment in a building...

NJ CVERAP II

NJ CVERAP IIThe State of New Jersey, through the Department of Community Affairs (DCA), has opened a $350 million rental assistance program to help COVID-impacted tenants with past due rent, future rent, and utilities. Note: You must be a current tenant.  While there...

Don’t Forget: Landlords Are People Too!

Op Ed: Don't Forget-Landlords Are People TooPOA Executive Director Kelly Voicheck was recently featured on NJ.com with regard to the "People's Bill."  Much has been written about the plight of tenants during this COVID-19 pandemic, but what seems to get lost in this...

What to Do if Your Income Dipped Due to COVID-19

What to Do if Your Income Dipped Due to COVID-19 By Roxy Julian Since the pandemic began, renters have been struggling to pay their debts, putting landlords in financially precarious positions. This is especially the case for individual landlords or those with small-...

Scroll other News & Views Posts.