Sunday, March 22, 2020

What to Do If You Can't Pay Your Rent due to COVID-19

NOTE: On April 6, 2020, the Judicial Council in the State of California suspended issuing summons in unlawful detainer proceedings for 90-days AFTER the state of emergency is lifted, suspended the entry of default judgment, and extended the time for trial with certain caveats. Review these new rules carefully to understand the protections that these rules afford. Despite these new rules, be sure to take a proactive approach with your landlord and timely notify your landlord if you are not able to pay the rent.

For details about the new court rules, click here.

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Cities with an Eviction Moratorium:

If you are located in a city with an eviction moratorium (see the right side of this blog entitled "COVID-19 Eviction Moratoriums or Tenant Resources), timely notify your landlord or property management company if you are unable to pay the rent. What is "timely" is described in the eviction moratorium published in your city's ordinance. What is timely under Governor Newsom's executive order is before rent is due or within 7-days after rent is due together with documentation substantiating the reason for the rent shortfall.

The City of San Jose published a tenant's form that can be used to notify their landlord about the impact of the COVID-19 crisis on their ability to pay the rent. 

See Landlord Notification form issued in San Jose.

Berkeley also has a new fact sheet on their eviction moratorium and a sample letter.

City of Hayward provides a tenant notification letter on their website.

County of Marin has a letter in English, Spanish, and Vietnamese that is a tenant's notification concerning their inability to pay rent due to COVID-19.

The City of Richmond recently published a letter that tenants can use to notify their landlord about the tenant's inability to pay rent due to the financial impact of COVID-19.

The San Francisco Tenant's Union also provides a sample letter to landlords which can be found here.

The City of San Francisco provides additional guidance here and advises tenants to notify their landlord about each instance in which the tenant is unable to pay rent. Click here for more information.

The City of Oakland does not provide a sample tenant notification letter but one can be modeled from the sample letters from other cities noted here but that quote the Oakland municipal ordinance and the date that it was enacted.

If your city does not have a similar notification form, draft a letter to your landlord notifying them about your inability to pay the rent due to COVID-19 and support it with documentation. Check your cities' eviction moratorium requirements and draft your notice consistent with those requirements.

Back up your written notice with documentation such as:
  • An employer order of mandatory leave with no or reduced pay due to COVID-19;

  • Necessity of staying at home to care for children due to school closure and issuance of city order to close your children's school due to COVID-19;

  • Reduction of work hours due to the coronovirus pandemic such as a letter from your employer;

  • Closure of work location due to local or state-issued shelter-at-home order due to COVID-19;

  • Unemployment related to the coronavirus pandemic.
Be sure to check your city's notification requirements for documentation required.

Send the letter by certified mail or by mail with delivery tracking and, if you are able to, email or FAX the letter, too. (Be sure to check the USPS delivery tracking information and print a copy of the delivery information. You may need to use these documents to support an affirmative defense to an unlawful detainer (e.g. an eviction proceeding in court.)

These moratoriums generally act as a defense to eviction but tenants are "still on the hook" for rent. Try to work out a payment plan agreement with your landlord or property manager so that when the moratorium is lifted, you are able to pay a lower balance due.

My City does Not Have an Eviction Moratorium:

If your City has not enacted an eviction moratorium, draft a letter to mail, email and/or FAX to your landlord and quote the requirements of Governor Newsom's Executive Order N-37-20 and follow the requirements set out in this order:

1) The letter must be sent before rent is due or within 7-days afterwards;

2) The tenant is unable to pay rent due to a financial impact caused by COVID-19;

"'(i) The tenant was unavailable to work because the tenant was sick with a suspected or confirmed case of COVID-19 or caring for a household or family member who was sick with a suspected or confirmed case of COVID-19;

(ii) The tenant experienced a lay-off, loss of hours, or other income reduction resulting from COVID-19, the state of emergency, or related government response; or

(iii) The tenant needed to miss work to care for a child whose school was closed in response to COVID-19.

The tenant retains verifiable documentation, such as termination notices, payroll checks, pay stubs, bank statements, medical bills, or signed letters or statements from an employer or supervisor explaining the tenant’s changed financial circumstances, to support the tenant’s assertion of an inability to pay. This documentation may be provided to the landlord no later than the time upon payment of back-due rent."


Send the letter by certified mail or by mail with delivery tracking and, if you are able to, email or FAX the letter, too. (Be sure to check the USPS delivery tracking information and print a copy of the delivery information. You may need to use these documents to support an affirmative defense to an unlawful detainer (e.g. an eviction proceeding in court.)

These moratoriums generally act as a defense to eviction but tenants are "still on the hook" for rent. Try to work out a payment plan with your landlord or property manager so that when the moratorium is lifted, you are able to pay a lower balance due.

Payment Plan and Payment Plan Agreements:

Certain landlord law firms or trade organizations have prepared payment plan agreements (also known as "rent workouts") for landlords to present to their tenants impacted by COVID-19. Before entering into any payment plan with your landlord, consult an attorney to help ensure that the conditions are "bargained for" exchanges and not a one-sided agreement.

Interestingly, the California Apartment Association, a leading landlord association, states:

"If you own or manage rental housing, please demonstrate patience and compassion when dealing with renters affected by coronavirus." 
Landlords also have to pay a mortgage and are being impacted, too.

The CAA is advocating for a state-wide eviction moratorium with financial assistance being offered to both tenants and landlords so that they can benefit from these protections; tenants can rent without fear of eviction and landlords can own without fear of bank foreclosure.

DISCLAIMER: Since the list of eviction moratoriums does not include all cities, check with your city directly or check the Tenant's Together link listed under the COVID-19 resources on this blog. The laws are changing rapidly to keep pace with the pandemic.

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