Landlord Reduces Tenants' Rent To $100 And Encourages Them To Spend Their Windfall Within Local Community

Apr 14, 2020 by apost team

In the wake of the coronavirus pandemic and subsequent government-mandated isolation measures, workers around the country have lost their jobs and are struggling to pay rent. To alleviate some of the economic stress, landlord John Zutz of Milwaukee, Wisconsin sent his tenants a letter telling them that he would only charge $100 for April rent.

Zutz, who owns two triplexes in the Riverwest community and has been a landlord since the 1980s, told the Milwaukee Journal Sentinel that he made the decision after considering that his tenants might be out of work and have trouble paying rent.

"I know that one of my tenants has a job at a retail place that is likely closed down and another works at one of those blood donation places; I've seen him around the house a lot, so I'm guessing he might have been laid off," he told the paper. "They’re good tenants, and I was trying to figure out something I can do that could help."

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In the letter Zutz sent to his tenants, the the Riverwest landlord made sure to emphasize that if they had a little cash leftover from the rent reduction, they should use it to support the community by ordering carry out, buying from local stores and tipping well in order to support the economy. And asked whether he would be open to reducing his tenants’ rent for next month as well,  Zutz said he was willing to reassess the situation and possibly provide relief again.

"I would encourage other landlords, if they’re able, if they have the means to do it, to do it,” Zutz told the Milwaukee Journal Sentinel. “I think we all have to do something. You have to decide for yourself what you can do and what you can’t do. We’ve got to keep the money moving."

Zutz isn’t the first landlord to forgive rent in the midst of this widespread crisis. Brooklyn landlord Mario Salerno received quite a bit of media attention earlier this month after he announced that he would cancel rent for hundreds of his tenants who live across the New York City area, according to The New York Times. Salerno, who has 80 apartments and around 200 to 300 tenants, told The Times that despite the sizeable drop in his rental income — likely hundreds of thousands of dollars — his only interest was his tenants’ wellbeing. Like Zutz, Salerno posted notices on his properties to alert renters of the good news, with his signs reading: “STAY SAFE, HELP YOUR NEIGHBORS & WASH YOUR HANDS!!!”

“My concern is everyone’s health,” said Mr. Salerno, 59, in an interview with The Times. “I told them just to look out for your neighbor and make sure that everyone has food on their table."

Salerno has been a well-known figure in the Williamsburg community ever since he started running the neighborhood auto body shop and gas station, which his father opened back in 1959, according to The Times. After inheriting the body shop, Salerno started buying vacant lots across Brooklyn in the 1980s, which he later used to build apartment buildings.

As tenants continue to struggle to afford rent, landlords across the globe should look to Salerno and Zutz for inspiration in how to look out for their communities in light of this unprecedented economic and health crisis. As Salerno pointed out, everyone’s health and wellbeing should come before profit.

How have landlords in your community helped tenants? How have others in your community helped out? Let us know and pass this inspiring story on to friends and family members.