Author Topic: Nationwide eviction moratorium - how are landlords coping?  (Read 480 times)

ChpBstrd

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Nationwide eviction moratorium - how are landlords coping?
« on: September 02, 2020, 12:00:57 PM »
The Trump administration just established a nationwide eviction moratorium through the EOY.

https://www.marketwatch.com/story/cdc-issues-nationwide-eviction-ban-through-the-end-of-the-year-in-an-effort-to-control-coronavirus-2020-09-01?mod=home-page

I donít own any rentals, but Iím wondering how landlords are going to handle 4+ months of no rent. How will the mortgage be paid on a four-plex, for example, when 1-2 units collect zero rent for the next 4-6 months?

The second thing I wonder is if a lot of real estate with negative cash flow is about to be put on the market at desperation prices in an attempt to avoid foreclosure. Iím certain a lot of operations are running on a very small cash cushion. The properties in California and other HCOL areas that had negative cash flow before the pandemic will be interesting to watch.

How are you planning to stay solvent? Borrow more against the property now?

Chiron

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Re: Nationwide eviction moratorium - how are landlords coping?
« Reply #1 on: September 02, 2020, 02:51:11 PM »
Way too early to determine any of this.  The order doesn't go into effect until Friday.  Yet to be determined:

1. Whether the order will survive the inevitable legal challenges.  Significant chance that it doesn't.

2. How tenants will respond.  Local eviction moratoriums have been in place in most places since March though many expired over the summer.  Many tenants still paid because they didn't want to get behind and unemployed got help from the stimulus packages. Evictions are down YOY in many cities.

3. Whether landlord assistance will be part of phase 4 of the stimulus.
« Last Edit: September 03, 2020, 03:23:53 PM by Chiron »

spartana

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Re: Nationwide eviction moratorium - how are landlords coping?
« Reply #2 on: September 02, 2020, 04:03:08 PM »
Calif just passed a similar no-eviction law. It is in effect now and it remains until end of Jan 2021. The basics are that renters who were financially effected by covid can not be evicted until next Feb but they must  pay at least 25% of their monthly rent. The landlords only recourse is to sue the tenant for the remainder but can't do so until the law is lifted in Feb 2021. Not sure if landlords will have any financial aid from the state but doesn't sound like it. I don't own rentals but curious how this will turn out.

https://www.gov.ca.gov/2020/08/31/governor-newsom-signs-statewide-covid-19-tenant-and-landlord-protection-legislation/
« Last Edit: September 02, 2020, 04:06:49 PM by spartana »