COVID-19 has negatively affected the lives of many Jamaicans.
The restrictions on movement implemented globally to manage the spread of the disease, led to a downturn in several sectors, especially tourism. Several people have lost jobs; been laid off; forced to accept significant reductions in their salaries; or have lost additional income they were earning. Some persons have experienced up to a 70 per cent reduction in income.
The Inter-American Development Bank has noted that job losses could reach close to 25 per cent in Jamaica, if the pandemic creates a prolonged recession, due to negative growth for more than three consecutive quarters.
As a result, there are many who could encounter difficulties with meeting their fixed obligations, such as their living expenses, and in particular, rent.
How you manage the situation will affect your credibility, which is your most important asset.
Here are few tips from our chief development financing officer in the JN Group, Earl Samuels to help with managing the situation:
- If you have been affected by loss of employment, lay off or a salary reduction, have a conversation with your landlord right away and explain your circumstances. Request a reduction or temporary deferral of a part of your monthly rental payment. Let your landlord know that you’re committed to settling your debt and when you expect to clear outstanding balances.
“Paying a portion of your rent on time will indicate your willingness to honour your obligation, and this will reflect positively on you as a tenant,” Mr Samuels advises.
- Whatever you do, don’t ignore your obligation, Mr Samuels adds, because your landlord can start termination and ultimately the eviction process without delay, especially if you miss a payment and you have been regularly late with your rent, or already in arrears
- Finally, it is very important that you restructure your financial obligations to match what you can afford. If the reduction in your income is likely to be long-term, you should consider renting a more affordable accommodation in order to reduce the stress of being unable to meet your obligation.
