Working with tenants and offering rent payment plans during thecurrent COVID-19 pandemic helped Virginia-based Capital Squarecollect 99% of multifamily rent in May, according to its topexecutives.

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"We worked with our tenants who had issues with their jobsduring these times," Louis Rogers, founder and CEO of CapitalSquare, tells GlobeSt.com.

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Chris Hirth, the vice president of asset management for theeight-year-old company that has a multifamily portfolio consistingof 6,595 units in 33 Class A and Class B apartments primarily inthe southeast, said Capital Square has made living conditions forits tenants in the current health crisis a top priority.

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To that end, Hirth said Tuesday, the company has stressed "toall on-site managers that they need to maintain open andcompassionate communications with all residents and they need toput in payment plans for those that need them because of the COVIDcrisis."

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Those payment plans will be offered throughout the duration ofthe pandemic, both Rogers and Hirth said.

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"The payment plans are pretty flexible and are tailored to eachindividual," Hirth said. "In some cases, they will pay half therent on the first of the month and the other half on the 15th ofthe month. In other cases, some might do weekly installments."Hirth said about 10% of the tenants took advantage of the paymentsplans.

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Rogers said the tenants are "grateful" to the company's offer ofpayment plans.

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"They are not only grateful, but will remember that someoneworked with them when they were in distress," Rogerssaid. "This is a different situation from a tenant tryingto skip out on rent or on getting an angle on a landlord. We've allbeen hit by this pandemic and, in the grand scheme of things, weneed to work with people to keep a roof over their head wheneverpossible,"

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The main distinction. Rogers said, between Class A and Class Bapartments are the age of a property.

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"With Class A, we are talking basically about new construction,new apartments, and the newest style of building," Rogers said. Hesaid about 90% of the company's multifamily portfolio consists ofClass B apartments.

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On average, Rogers said, tenants in a Class A apartment will pay$1,600 to $1,800 a month for a one bedroom apartment. They wouldpay about $1,000 to $1,100 a month for a one bedroom apartmentin  Class B.

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The company has properties in 19 states, primarily in thesoutheast. The state's with the most multifamily units areVirginia, Georgia and South Carolina, Rogers said.

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Robert Storace

Robert Storace covers legal trends, lawsuits and analysis for the Connecticut Law Tribune. Follow him on Twitter @RobertSCTLaw or reach him at 203-437-5950.