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Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: ChpBstrd on September 02, 2020, 12:00:57 PM

Title: Nationwide eviction moratorium - how are landlords coping?
Post by: ChpBstrd 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 (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 don’t own any rentals, but I’m 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. I’m 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?
Title: Re: Nationwide eviction moratorium - how are landlords coping?
Post by: Chiron 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.