According to a new survey by the Urban Institute in collaboration with Avail, paint rental companies are particularly hard hit by the economic viability of COVID-19.
Black and Hispanic landlords are more likely to have difficulty paying their mortgages than white landlords, and they are reportedly more likely to be more indulgent in mortgage indulgence the report. They are also more likely to offer their tenants a rental payment plan to keep people in their homes.
While nearly 12% of landlords are lenient with a mortgage, these landlords are disproportionately black and Spanish, according to the survey. Nearly 20% of black landlords have at least some indulgence, followed by 14% of Hispanic and 9% of white landlords.
"Half of the landlords surveyed said they did not know whether their servicers were lenient," the survey said. “Almost two-thirds of white landlords said they were lenient because they could make their mortgage payments. Less than half of Black and Hispanic landlords said the same thing. "
Landlords said they pulled from savings or emergency funds to survive the crisis. 41% of black landlords, 35% of Hispanic landlords, and 34% of white landlords use these sources. About 16% of all landlords found government aid helpful.
"Many landlords were reluctant to accept the leniency option because they would have to repay the deferred mortgage payment after the grace period expired, and were unsure whether their tenants would be in a better financial position to repay their rents in the future," according to the Survey.
The results show that more help is needed to assist landlords, especially those who own less property and are more affected by tenant insolvency.
"The extension of the eviction moratoria will help tenants stay longer in their homes, but for many landlords who are struggling to make their mortgage payments and are disproportionately colored people, additional measures need to be taken to ease their financial burdens" according to the Urban Institute.
More than a third of landlords said they earn a large part of their income from rental properties, which exacerbates problems for colored landlords.
"… Black and Hispanic landlords have lower incomes, own less real estate, and are more likely to have a mortgage than ownership of their property," the survey found. "As a result, Black and Hispanic landlords are more likely to have difficulty making mortgage payments."
Black and Hispanic landlords are more likely to own only one rental.
“Owning less real estate makes it more difficult to diversify the risk and increases the financial volatility of rental income in the event of a crisis,” according to the survey.