I had a new client referred to me. A few years ago I would have met this with great joy. Now it's more mixed emotions. I'm really pretty burnt out on doing accounting/tax. In fact, by the time tax season ended this year, I was ready to send out a blanket letter to my existing clients to, putting it mildly, establish new rules. I am so tired of inconsiderate people, who have all their info at hand, wandering in here at the last minute. It puts SO MUCH stress on me, particularly since I have the bread and butter part time job. And, believe me, this isn't the first time I've had to bridle my tongue and keep myself from doing this. I have tried to be accommodating, but I know that some people will take advantage of you because they can. They don't need any other motivation.........
I had to drive about 8 miles to meet with this new client. And, I ended up making two wrong turns trying to find him. He lives in a fancy gated community with all sorts of twisty turny streets. My car is old enough that it doesn't have GPS. Sometimes that is an inconvenience--like today. I felt like I was on a search for the Holy Grail. Sometimes I like it because there may come a time I'd rather big brother not know where I am at all times. However, today's experience had me online pricing portable GPS systems--the kind you can disconnect.
The guy is Asian and elderly. I would say he was born in the US to immigrant parents. He is filthy rich, at least by my standards. He owns several pieces of rental property in Washington DC. He just turned down a cash offer of 2 million dollars on one of them. Two years ago the same property was appraised at 5 million. Here's what I learned about COVID: This particular property is rented to a restaurant. However, as of May, he's lost $22000 on it. Because of COVID, the lessee can't pay the rent. Meanwhile, the operating expenses of the property are falling on my new client. He has met with an attorney who specializes in landlord-tenant matters and there appears to be nothing he can do. According to the attorney, the courts that hear landlord-tenant cases have shut down. Apparently law firms who specialize in this type of law are closing up operations. And they don't expect the courts to open up til the end of the year, at which time there will be huge backlog of cases. So, my client cannot evict the client . And having the facility standing vacant has depressed the market value of the property so he stands to lose millions if he tries to sell out now. However, in the alternative, in the meantime, he is on the hook for the operating expenses--utilities and such. He cannot turn off the lights, etc., because then the place turns into a derelict building.
I have had a great deal of sympathy for people facing eviction or foreclosure because of lay-offs and business closures due to "the China Virus". It brought to mind the fact that the small branch bank in the neighborhood of my work, has closed down. Now, I'm sure B of A is still solid, but can we expect other small branches to close? The truth is, upper echelon management would be wise to take that step. With home loans not being repaid, and, I'm sure commercial loans are also not being repaid, you can see that the banks will have less cash to play with and will need to cut costs. In addition, many of the renters/borrowers may need to bankrupt due to this mess. This could take quite a toll on the nation's banks.
I had never looked at it from the standpoint of property owners or mortgage lien holders. Even worse, we once again face a glut on the market of rental property and foreclosed homes, once we think "it's" over, thus depressing the market value of those homes that are not hardship sales. It's gonna take a while to pull out of this...........possibly quite a long while.