Texas Trinity Team is being proactive regarding the current situation with COVID19. Here is the latest advice from Texas Association of Realtors (TAR) as well as from CCIM Institute. Of course, our blog is not meant to interpret law. We encourage you to speak to your risk advisors or attorneys on these matters related to COVID-19.
Current Federal and State mandates have prohibited any foreclosures or evictions for two months. It is important to review all Federal, State and Local orders in regards to how missed rent payments or late payments are to be handled. We need to be mindful that these new regulatory orders may supersede language within lease agreements.
TAR recommends the following:
Insurance May Not Cover Tenants
In addition, Landlords and Tenants need to check their insurance policies. Tenants may not be covered for business interruption and here is why: business interruption insurance policy should list or describe the types of events it covers. Some policies require business interruption to last for a certain time period before being entitled to any policy benefits. The concern is that business interruption coverage typically can only be triggered if you have property loss that leads to the business interruption. At this time, tenants have not experienced property loss. All parties need to consult with their insurance providers.
How Landlords Can Respond
The CCIM Institute states “it is only a matter of time before tenant’s approach landlords about negotiating rents. When a business closes suddenly, even if it's temporarily, there are no winners in this situation. Here are some viable alternatives to mitigate this issue:
There are additional recommendations that can be offered to tenant. We want to assure you that we are working hard to assist you at this time. Reminder! To Stay Home, Stay Safe. Let's help Flatten the Curve. Let’s find some time to visit real soon. Virtually, that is.
Miki McCarthy, REALTOR®, GRI
Texas Trinity Team | Designated Supervisor
C 956-249-9454 | www.MikiMcCarthy.com
Texas Premier Realty | Broker Daryl Zipp
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