For Central Texas apartment dwellers who have lost their jobs or are working reduced hours due to the coronavirus outbreak, the arrival of April also brings a financial challenge: their rent is due.

Early and honest communication to landlords and property managers -- along with providing documentation from an employer or other documentation what shows how you have been impacted -- will improve a renter’s chance of getting some leeway, according to the Texas Apartment Association and other industry experts.

While many variables come into play depending on renters’ individual situations, "everyone is doing the best they can under very difficult circumstances," said Emily Blair, executive vice president of the Austin Apartment Association.

"We are encouraging our industry to offer payment plans to impacted residents and waive late fees," Blair said. "I also have heard of other companies offering additional benefits when they can, such as rent freezes on renewals, etc."

The local and state apartment associations have issued new paperwork to equip the rental apartment industry to create payment plan agreements with affected residents and to waive late fees, Blair said.

"We have been training our industry on these documents, and encouraging property managers to start the conversation with their residents," Blair said. "These documents are being widely used, and give the flexibility for the property owner and the impacted resident to come to a mutually agreed-upon plan for how to proceed.

Nationally, apartment owners collect more than $22 billion in rent in a typical month, according to CoStar Group.More than 25% of the households that rent in the U.S. could need help making payments because of the coronavirus, requiring up to $12 billion a month in government support, according to research from Amherst Holdings.

Jeannie Nelson, executive director of the Austin Tenants Council, said landlords are going to have to be willing to negotiate in an apartment market that has changed almost overnight.

"The rental market in Austin is vastly different than it was two weeks ago," Nelson said. "Two weeks ago, there was someone with money in hand, waiting in line to move in if a tenant was evicted or broke their lease, etc. It was a landlord’s market. That’s not the case today."

’No one benefits’

Matt Ely, principal manager at Austin-based Ely Properties, said his company is trying to work with tenants who are saying they can’t pay their rent. Ely Properties manages about 1,000 rental units in Austin, about 600 of which are leased by students near the University of Texas campus.

"We’re feeling the crunch just like our tenants are, whether they are students or people in the service industry," Ely said.

Ely Properties is working with some tenants on special payment plans in light of economic impacts of the pandemic, he said.

"I’m sure we’re going to hear from more people as the week progresses, and into next week," Ely said. "And as we do we’re going to see what we can do on a case-by-case basis to help them out."

Terri Clifton, president of Houston-based apartment management firm Better World Properties, said many landlords she’s hearing from also are taking a case-by-case approach.

"This crisis does not create a free pass," Clifton said. "Everyone must do their part."

Clifton said the industry is "working tirelessly with community development experts and officials at every level" on solutions for affected residents, employees, apartment owners and lenders.

"No one benefits when people lose their homes," Clifton said. "We all lose when the economy comes to a halt."

The overall apartment occupancy rate in Austin has taken a hit, dropping between 3% to12% on a property level, and rents are down 3% to 5% overall during the past three weeks, said Robin Davis, owner of Austin Investor Interests, which tracks the Central Texas apartment market.

"Last week, a lot of properties saw an increase of calls from residents, requesting information about payment plans," Davis said. "Some properties are waiving April late fees, other properties are supplying their residents with information on how they can get rent help from Travis County and nonprofits. Others are waiting for a property owner directive on how to handle/approve payment plans for residents."

Like others, Davis said communication is key for tenants who are struggling.

"While everyone seems to be struggling in some way or another, whether it be from isolation, or worries to make rental payments, this is a time we are seeing management and tenants working together for the most part," Davis said.

Evictions prohibited -- for now

Nelson said the Austin Tenants Council has received numerous calls over the past few weeks from tenants who are concerned about loss of wages, inability to pay rent and eventual eviction.

The Texas Supreme Court has issued an order halting evictions until April 19. Travis and Hays counties have delayed eviction hearings until May 8, so no evictions can be finalized before then. Williamson County has delayed eviction hearings until May 11.

The Austin City Council passed an ordinance last week that gives tenants a 60-day grace period after rent is due in April and May before eviction proceedings for nonpayment can begin, Nelson said.

"This give tenants some time to pay back rent and/or negotiate a payment plan," she said.

In addition, Mayor Steve Adler signed an order prohibiting delivery of notices to vacate, landlord lockouts and seizure of tenant property -- an order enforceable by law officers, Nelson said. At the federal level, the CARES Act gives renters in federally subsidized properties additional protections, Nelson said.

While the various delays buy renters some time, "a landlord will eventually be able to pursue an eviction judgment for non-payment of rent," Nelson said. "If tenants can pay their rent, they should. If they cannot pay they should seek rental assistance and/or communicate with their landlord to try to work out a payment plan."

Rent concessions and other move-in specials, rare in the market for some time, are making a comeback. Some property owners are waiving deposits and application and administrative fees, or are crediting them back once a tenant is approved.

"We have seen an increase of look-and-lease specials, meaning a prospect could get between one-half to a full month off of their first month's rent if they applied within 24 hours of their virtual tours," Davis said. "There have been quite a few incentive specials based on the urgency of moving in now."

Jess Rodriguez, manager of apartment locating firm Apartment Experts, said rents are dropping throughout the market.

"I’ve seen prices come down by as much as $100 at some complexes. And we have a handful of apartments offering up to eight weeks’ free rent," Rodriguez said. "Definitely people are seeing this as an opportunity to make a move to a place, when it might have been out of budget before."

Additional material from Bloomberg News Service and USA Today.