COVID-19 is here, and will be here for at least the next few months. I am going to refer to this as post number one, or the pre first rent day post.
I want to start with setting the stage on where we are right now in Canada and the USA. The Corona Virus has been spreading, so measures to stop the spread have been put in place by the government and individuals. The advice is being provided by medical professionals at all levels of government and the World Health Organization. The virus started to spread in China and from there went world wide. Several countries such as China and South Korea appear to have the spread under control and are starting to recover. As I right this on March 29, 2020 the virus is spreading fast throughout Canada and the USA (as well as several other countries). Most of Canada and the USA are under house arrest.
Social distancing rules have been put in place such as keeping a 6 foot distance from other people and no more than 5 people in a group and a strong message of stay at home. All children’s birthday parties are cancelled, grandparents are staying away from grandchildren. On top of that anyone who has traveled (if you can, since most international flights are cancelled) is required to self quarantine for 14 days, that means no contact with anyone, includes going to get groceries, driving in a car etc. Several states and provinces have given power to police forces to enforce the restrictions placed on people. This can include prison, fines, or a good stern talking to.
Depending on where you are parks are closed, restaurants are either offering take out or are closed, night clubs are closed, museums are closed, movie theaters are closed, all non-essential businesses are closed, essential businesses are limiting the amount of customers allowed in, and recommending only one person go the a store per household.
Toilet paper is a hot commodity, to a point where people were hording it, buying all of it, fighting over it. Now when you go in stores there are limits on items like toilet paper and hand sanitizer. People were buying it, and then selling it online for huge mark up. Amazon started cancelling listings of over priced hand sanitizer. Other online platforms are deleting listings of these items as well.
Many stores are refusing to take cash. The Canadian government has been putting out information pointing out that businesses are required to take cash. Many elderly or homeless do not have bank or credit cards. I did see a pan handlers sign, that actually read: You can also give safely by emailing money. Everyone is so afraid to touch anyone.
Additional protective measures are being taken in the stores such as plexi-glass in front of the cashiers, latex gloves are being worn by customers and workers, hand sanitizer (if you can get it) is being used, as well as other products to keep everything clean. Hand washing is now not just a strong recommendation, it is a life saving necessity.
The challenge with this virus is that it can be spread really easy. A person could have the virus and pump gas (which is at a 30 year low, 64.1 Cents per liter in Nova Scotia today). The next person to pump gas could get the virus on there hand, they could then touch there mouth and voila they are infected. The virus attacks the lungs, so it can be a death sentence to people with respiratory problems, also elderly people or babies. Anyone with a weak immune system is high risk.
Millions of jobs have been lost in Canada and the USA due to the spread of the virus. Complete industries are on lock down or very close to, such as hotels, anything in travel and tourism. CEOs like Christopher Nasetta of the Hilton hotel chain are forgoing salaries. Many weddings have been cancelled, funerals are limited to 5 people, the list goes on. We are heading into some challenging economic times.
Non-violent prisoners are being let out of jail to help stop the spread, this includes freedom for some elderly prisoners. The court cases are either not happening or are very limited. When this ends, the courts will be severely backed up.
Currently there is no cure for the corona virus. Some folks get infected, pass it on, but don’t exhibit symptoms, so they do not even know they have it. It appears at this point it will pass through a persons system within 14 days. That is the current quarantine timeline.
A lot of people are under stress and strain, living in fear. The current circumstances are bringing out the worst and the best in people.
Now that I have set the stage, I want to talk about how this is affecting landlords and property managers.
Rent may be late or not paid: We are heading into the first rent day, since the virus has grabbed a hold of the economy in Canada and the USA. Many governments have put a freeze on evictions related to a loss of income due to the Corona virus. Several tenants have interpenetrated this as they are not required to pay rent. As those of us in the industry know that generally properties have heavy expenses, large mortgage payments, and very small margins. If rent is not collected many landlords would be bankrupt in a very short time.
In my area the government sent shock waves through the residential property industry by making an announcement that there would be no evictions for 3 months. Fortunately they added clarity along with the residential tenancy board.
They made it clear. Tenants are required to pay all the rent. The purpose of the eviction freeze is not to provide free rent to tenants on the backs of landlords and banks, but to provide time for tenants to work out a deal with landlords to pay what they can now and the rest when either government aid, or unemployment cheques start, or they could get another job in an industry that is booming (such as grocery, pharmacy, cleaning supplies, masks, respirators, healthcare etc.
If they do not pay the eviction process will just be delayed, also if it is not related to a loss of income from COVID-19 (such as a threat of violence to other tenants, or property damage) those evictions will still take place in our area.
The government also has been publicly encouraging tenants to contact their landlord / property manager if they are going to be unable to pay rent on April 1. That way a deal can be reached in advance. Read: Will you be able to collect the rent for ideas on what to do.
Judgement / secret police / spys: I know that subject sounds like something out of a documentary on communism or an old cold war story. I mean if you are into conspiracy theories you will have a field day with this virus. Here is unfortunately what is happening in some apartment buildings (or fortunately in some cases). If you are a property manager or superintendent of a building, you know you are the first point of contact for tenants. Some tenants are accusing others of not following the social distancing or quarantine rules, and have been telling on their neighbors, or confronting them. The idea of the message stay home is good, however, if you have been trapped in a brick building with small children for several days, and need to go out and get some air, you can see how rules can be broken. Maybe a 4 year old jumps on the swings in the park next to the building. Maybe someone has 5 kids and they go out all at once. What if you have a dog that needs to be walked. What if you are part of the essential service work force. Maybe some people do not see the service you provide as essential. In our area one of the hot topics is liquor stores are considered essential. These type of situations cause some people to judge, over react, and start reporting rule breakers to property managers, or the police. There are actually numbers to call.
I will say that if someone has traveled and are not doing the self quarantine, it is a good idea to have your tenants report it to the building manager. Then come up with a solution to help with their needs, or if necessary contact the police. In our area the fine per day / violation is $1000.
All levels of the Canadian government have been repeating the same message: Be kind to your neighbors, before you judge, investigate how you can help. The confrontation of neighbors with accusations that may or may not be true could cause long term feuds between people. I would encourage tenants to communicate with your building manager before they call the police. That way you can head off the complaint.
Self Quarantine of all residents per unit: If you know a tenant has traveled and is required to self quarantine, that means all tenants in the unit need to be in quarantine for 14 days. This includes roommates and family. To help get a head of it, if you know a tenant is away, you can post a notice / email the tenant or roommates left behind. You can post the local department of public health order. As a property manager / resident manager you need to stay on top of this, to keep all your tenants safe, and prevent possible conflict between residents, or yourself.
Social Gathering / guests: During this period of social distancing, it is important that everyone follow the requirements set out by the government and health departments. If everyone follows the rules this event could be over sooner than later. The idea is to “flatten the curve”. In our area no gatherings can be any greater than 5 people. This includes folks having friends over, kids birthday parties, sleep overs, family gatherings, game nights, etc. If there is a suspected gathering in your building, make sure tenants report it to you first, that way you can investigate, before calling the police. If the tenants refuse to break up the gathering you are obligated to contact the police. The upside to all this is that all parties are being prevented. The bad news is that people are stuck in confined spaces for extended periods of time. This could cause an increase in domestic violence and child abuse. Make sure to have this on your radar.
Building / Unit access – utility service / maintenance and repair: Make sure that you have a contact number for utility service providers and maintenance people. If you have a notice on the buildings front door that states you are only allowing limited access, then these people that you want in your building may just walk away. It is also important to make sure they do not enter any units where a person is in self-quarantine due to travel. If there is an emergency, the person going in will need to be wearing proper PPE (personal protective equipment).
COVID-19 Racism – Xenophobia: You may have tenants that will face judgement or blatant racial attacks based on their nationality. The origin of the Corona virus was China. It does not help that the current president of the United states (Donald Trump) called it the “China Virus”. He defends what he said in this CNN article. When the virus started to spread many Asian business owners were being targeted with racial comments. It is hard to believe that in 2020 we would have to deal with this kind of racism, but unfortunately, you may have to get involved on some level. As always avoid confrontation and realize you are not likely to change someones opinion or views.
Let’s face it, some people will not take these orders seriously, and others will take them too serious. Common sense always needs to prevail. The residential property business is arguably the most important essential service. We have to run properties during all economic conditions, and in this case a world pandemic. Even if the tenants do not pay, treat us or each other poorly, we need to put a smile on our face and handle every situation the best way we can. Do not panic, this to shall pass.
Until next time,
Design your landlord experience,
Michael P Currie
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