Right now, we’re going to talk about the tenant and landlord quandary during COVID.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: We’ve been talking about the complexities of the landlord/tenant laws that are coming through due to the coronavirus. They’re talking about having to kick down the road until the end of June the benefit of tenants not being required to pay their rent so that they can offset their loss of income.
Bob Nelson: And it’s a tough situation because certainly a tenant who has been adversely impacted by the virus and doesn’t have the money to pay the rent, what do you do? Kick them out?
Well, technically that’s the contract that was set from the very beginning. Landlord says, “I give you use and possession of the property, quiet enjoyment of the property. In return, you pay me rent. And if you can’t pay the rent, you’re not entitled to the quiet use and enjoyment of the property,” which means go away. But again, that’s a tough situation. How do you kick somebody out? How do you evict someone who has been adversely impacted by something they can’t help?
Marcia Edwards: Instead of on the tenant side, let’s talk to you landlords out there. You’re in a quandary, as well. And I want to talk a little bit about the opportunities for you as an investor. I understand you’re feeling like you’re going out on a limb as a landlord and your risks are higher. There are ways to navigate a sale at this time. So if you want to sell that property and roll it in a 1031 that’s still available today into some other kind of real estate, we could help you on that.
Bob Nelson: Yes, absolutely. It takes a certain amount of planning. You need to know where you would rather be than where you are right this moment. You don’t just simply sell and say, “Well, I’ll look around to see if I can find something of interest.” Because when you look around, you’re going to find very few things available, period. Whether they’re of interest or not.
Marcia Edwards: And you’ve got to forecast. If you’re going from residential to commercial or other use property in your role of your money in your 1031 exchange, the easy part is getting that single family residence sold. Not uneasy. You want to optimize the opportunity, I’d love to help you do that. Let’s talk, Bob, about how you identify where you want to go next with your money.
Bob Nelson: It’s a function of where you are in your life cycle. Are you willing to take on management and do some of it yourself, or do you require that someone else handle it? The wise decision is generally that you have very competent professional management. So even though it costs something, they’ll get more efficiency out of the property than they take out as cost. And then the question is, do you want to go into commercial? Do you want to stay residential? Do you want to go, so forth? That’s what I’m good at.
Marcia Edwards: Start today a conversation of what could be for your future with Bob. And then we’ll talk about the real estate that you need to liquidate to get there.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.