2B — May 15 - 28, 2020 — New Jersey — M id A tlantic Real Estate Journal
N ew J ersey
OVID-19, stay-at-home mandates, and job loss impact us all. When By William J. Redmond, CPCU, World Insurance Associates LLC The new normal: Supporting the residential rental market beyond the pandemic C
pandemic. Why do renters and land- lords need help? COVID-19-related job loss is not to be understated. Even pre-pandemic, the statistics are astonishing. 30-50% of Ameri- can after-tax income already goes to housing expenses, and 78% of workers live paycheck to paycheck. That leaves most renters with no safety net when they lose their job or become disabled and unable to work. Missed rent payments can have a lasting impact on tenants, and the eviction process is expensive and time consuming for landlords.
Even before COVID-19, there weren’t many programs designed to help the 36% of American renters, who, as a population, are more vulner- able than homeowners. Older Americans were already losing their jobs, and younger Ameri- cans were concerned about job replacement. Individual investors who own a smaller number of rental properties are also vulnerable and are hit harder when tenants cannot pay rent. Who pays the rent when tenants cannot? The situation during CO- VID-19 is not unique. It is just
more widespread, bringing these issues to the forefront. The industry needs a solution to support renters in times of crises beyond this one pan- demic. One new solution is the Pensio Tenants Rent Guar- antee program, which pays the rent of residential ten- ants impacted by unexpected job loss or disability. All rent payments made by Pensio are made directly to the landlord and are non-recourse. Depending on the lease agreement and the chosen Rent Guarantee plan, Pensio Tenants will pay rent to the
landlord for 3, 6, or 12 months if a tenant involuntarily loses their job or become disabled and unable to work. The Rent Guarantee can be purchased by tenants directly, or by landlords or property man- agers for the tenants of their buildings. The Pensio Tenants Rent Guarantee makes it easy for renters to qualify, with no credit score requirements, no monthly income require- ments, no deductible, and no specifications on the length of the lease. COVID-19 has had a sig- nificant impact on tenants’ lives, but so can other events. When rent is guaranteed, renters can stay in their homes and focus on getting back on their feet instead of a potential eviction. They can keep more of their money in savings and focus on grocery, medical, and other bills. Landlords have peace of mind knowing that the rent will still be paid. Coverage starts at just $35 a month for three months of rent protection, based on $1,000 in rent. To learn more and calculate your Rent Guarantee fee, visit www. worldins.net/solution or email firstname.lastname@example.org. We don’t know all the long- lasting effects of COVID-19, but we do know that the need to support landlords and renters is not new and will continue beyond the pan- demic. Let’s make supporting the residential rental market part of the new normal. Wi l l iam J. Redmond, CPCU is principal and senior vice president at World Insurance Associates LLC.
renters must juggle food p u r c h a s e or rent, the trickle-down e f f e c t o n m a n a g i n g a g e n t and l a n d l o r d cashflow and
their own ability to meet ob- ligations is significant. It’s time for a solution that en- sures renters can continue to pay their rents and make landlords whole beyond the
With Gratitude Thank you to all of the medical professionals, first responders and essential workers for their tireless efforts to support our communities while we attempt to flatten the curve.
We are hopeful.
The Kislak Company, Inc. Woodbridge, NJ Conshohocken, PA
a section of the MARE Journal 350 Lincoln Street, Suite 1105 Hingham, MA 02043 P: 781-740-2900
Kislak Commercial Real Estate Services, Inc. Basking Ridge, NJ
Fax: 781-740-2929 www.marej.com
Section Publisher Lea Christman email@example.com Section Editor Karen Vachon firstname.lastname@example.org
Made with FlippingBook - Online Brochure Maker