Property House owners Proceed to Battle Amid Pandemic Setting

0
406
Property Owners Continue to Struggle Amid Pandemic Environment

For the past 13 months, NAR's legal and leadership teams have met with congressional officials and White House officials to find a solution to the escalating commercial real estate crisis. As a result, more than $ 46 billion in rental support has been ensured through two separate pieces of legislation, each dollar designed to keep families in their homes and mom and pop apartment owners afloat. However, ongoing eviction moratoriums continue to destabilize the real estate market and damage both owners and tenants. The following articles show this problem in the media and how it harms different groups.

You Paid For It: The St. Louis Sheriff admits the landlord got a bad deal on the eviction moratorium (Fox TV St. Louis, April 19, 2021).

Sheriff Vernon Betts has the unenviable job of delivering eviction notices and forcing families out of their homes. But that job was stopped because of the pandemic. The presiding judge of the St. Louis Circuit Court, Michael Stelzer, banned most evictions. Landlord Allen Shelton says his tenant won't pay. He said he didn't have much money to keep improving the building. To make matters worse, the pipes froze and water seeped into the control boxes, cutting off power to the first floor tenant who, according to Allen, hadn't paid rent. When the town's building inspector came Shelton told him to just condemn the building. But the building inspector only condemned the second floor, and not the first floor where the non-paying tenant lived.

The $ 50 Billion Race to Save America's Renters from Eviction (The Washington Post, April 8, 2021)

The National Association of Home Builders joined Ohio landlords in a different suit. The judge on the case, J. Philip Calabrese, also ruled against the ban, writing on March 10 that "the CDC's orders exceeded the legal authority that Congress has given the agency." Tenant attorneys and housing company lobbyists alike celebrated when the federal government approved approximately $ 46.5 billion in emergency rental aid to be distributed to renters and landlords through hundreds of state, local, and tribal housing agencies and organizations. But paying out so much money so quickly and efficiently is not an easy task. Yentel recently said that only about half of the states have put in place a program for this. Some landlords have started saying they won't accept the money because they fear there are too many conditions.

Eviction Moratorium: Landlords Pay a Price (Washington Examiner, April 1, 2021)

While many local, state, and federal government agencies recognize the plight of tenants, they appear to disapprove of the plight of small landlords like Rich Tyson of Rochester, New York. “My property tax per year is roughly $ 58,000. I've lost more than this year to date from tenants who have not been affected by COVID but have simply chosen not to pay rent. … I lost … $ 60,000 in rents this year that … will never be recouped, "Tyson said.

Eviction moratorium a burden on landlords (Las Vegas Review Journal, April 1, 2021)

Any experienced property manager will tell you that once a tenant owes a month or more of rent, no matter how well the tenant means, they will no longer be able to make up the unpaid balance. Seasoned managers skip legal action and make it attractive to the tenant to find a more suitable and affordable apartment and eat the loss if they find that the tenant cannot pay.

The moratorium on eviction for tenants in Illinois is likely to be extended but won't come back too far (ABC TV Chicago, March 31, 2021).

Withdrawing evictions in Illinois will likely continue through June 30, if the CDC puts a moratorium on evictions, but it's important not to fall back too far. The moratorium can give tenants some breathing space, but on the other hand, it's owners. The hardest hit are those with small buildings, which can also find it difficult to get by without an income. "When someone has four units and has a tenant or two who aren't paying, it becomes a significant part of their investment," said Paul Arena, Illinois Rental Property Owners Association.

Keep Washington's mom and pop landlords in business (The Seattle Times, Mar 29, 2021)

Heads of state rightly prevent pandemic evictions from residential buildings. Crowds of Washingtoners shouldn't be brought onto the streets when the eviction moratoria eventually expire. But landlords aren't the big bad wolf in every story. Often times, they are small business owners who have difficulty paying their own bills. Today many wonder whether the investment is worth the risk. Washington policymakers should encourage these entrepreneurs rather than evict them.

Some landlords are selling properties as CDC extends the eviction ban (CNBC, March 29, 2021).

A federal ban on evictions is putting pressure on smaller landlords who don't have direct access to Covid rental aid funds, and some are starting to sell properties to make up for losses. This will likely reduce the much-needed, affordable rental stock in an already unaffordable housing market.

The attack by a landlord again raises questions about the eviction moratorium of D.C. (The Washington Post, March 24, 2021).

Keith Carr was not trying to provoke a confrontation, let alone a fist fight. The 38-year-old landlord was in one of the three apartment buildings he owns on Longfellow Street in Brightwood Park, northwest Washington, Thursday afternoon. He went into the building to check the maintenance. Thirty minutes later he ran away from the property, bleeding from fear and adrenaline. In the hours after Carr's attack, the Small Multifamily Owners Association, a DC landlord advocacy group, emailed all DC Council members. Carr's situation was blamed on the severity of the moratorium: "You are responsible for his injuries," began the email before an exemption from the district's eviction moratorium was requested for tenants who endanger the health and safety of their neighbors. Without the ability to evict tenants, "I have no authority," he said. "I would say it is getting out of hand as tenants realize that there are no more consequences now."

Biden's administration sees an expanded ban on evictions as incentive delays and landlord lawsuits loom (The Washington Post, March 24, 2021).

The legislature admits that the federal eviction moratorium is not perfect. Housing lawyers and some Biden government officials have even questioned whether the federal government has the power to extend it. However, there is broad consensus that a continuation of the federal eviction ban is essential. "In general, the moratorium has done what it intended," said Diane Yentel, president of the National Low Income Housing Coalition. However, she acknowledged that "it has many flaws and deficiencies that undermine the public health purpose and have enabled an alarming number of evictions".

Small landlords struggled when tenants stopped paying (California Matters, March 17, 2021).

At the beginning of the pandemic, Brandon McCall's two tenants ran into financial difficulties. One had an operation and was handicapped, which put strain on his wallet. With a limited amount of money, McCall said the two stopped paying rent on his Van Nuys Los Angeles apartment. McCall investigated mortgage forbearance but chose to insist upon learning that it would affect his creditworthiness. He would have to pay in full even after his grace period has expired. Unsure when tenants would pay again, McCall and his wife went into savings to cover the mortgage on their apartment, even if they were renting elsewhere for work. "Landlord and tenant rights are the same," said McCall. "They often compete against each other, but they're the same. … I want to stay. I want to accommodate my tenants. We're all in the same boat."

Who's Looking For Struggling Real Estate Owners (Nevada Independent, March 12, 2021)

I am a landlord with a property that is rented to a tenant. My savings are being seriously used up. Why do you ask? Because my tenant hasn't paid his rent in months – despite being employed and still receiving $ 80,000 a year at his place of work in Las Vegas throughout this pandemic. I am currently in cancer treatment myself and in financial trouble, and I rely on the income from my Las Vegas rental property to pay for the property I now live in. Three months before the end of his lease, the tenant stopped paying his rent and also expressed a desire to extend the lease for another year (instead of month-to-month as per the original contract).

Unpaid rent is increasing. Landlords Can't Hold On Forever (Northern California Action News Now, March 12, 2021)

Millions of struggling tenants had a much-needed hiatus when the federal eviction moratorium was extended to the end of March. But for many landlords in the United States, the news was a nightmare. "It is important to realize that after 10 months of severe economic hardship, job losses and falling rental income, everyone is hurt," said Bob Pinnegar, president and CEO of the National Apartment Association, an industry group that represents property owners. By further extending the moratoria, landlords and property managers would "be burdened with the financial burden of providing housing to America's 40 million tenants without adequate resources, and residents could run into even more debt."

Why the Eviction Moratorium Is Not Fair to Landlords (ROI New Jersey, March 5, 2021)

At first glance, it sounds like an important social adjustment when people hear of an eviction moratorium. Let's be honest: landlords are not personable figures. However, there are two sides to this problem. Many landlords are not big corporations and not rich – they are hardworking people who own a building or two and whose life savings are tied up in their residential operations. Let's look at the bigger picture. If tenants fail to pay their rent, landlords cannot pay their bills – even some of the larger businesses. It's a very simple cause and effect scenario: if tenants fail to pay their rent, landlords cannot pay their mortgages, they cannot pay their taxes, they cannot pay their utilities. The courts are unlikely to provide any relief to owners after the pandemic has subsided. The backlog of evacuation measures is staggering.

Mom and pop landlords "helpless", injured under eviction moratoriums (The Patch, March 5, 2021)

The sigh of relief unleashed by millions of U.S. renters struggling with coronavirus-related jobs and loss of income was almost audible as President Joe Biden swept a roof over his head on his first day in office . But their relief is another group's pain. For mom and pop landlords – people with small real estate portfolios who rely on monthly rent payments to earn income or pay their mortgages on real estate – Biden's Executive Order was nothing short of devastating.

The eviction moratorium gave relief to tenants, but owners must pay billions in unpaid rents (ABC TV Rochester, NY, February 27, 2021).

Richard Brown is the landlord of several properties in Winchester, Virginia, mostly small single-family homes. In August, Brown had to pay mortgages on his property, as well as maintenance and supplies, while his tenants' income fell due to the pandemic. One of Brown's tenants hadn't paid him in months and owed nearly $ 10,000 in rent back. He feared that he would fall behind on his mortgage payments and lose his other properties. A foreclosure moratorium in Virginia prohibited him from prosecuting his tenant until the state order expired on September 7th. Brown recently reported that half of his tenants are no longer paying monthly rent.

Unpaid rent is increasing. Landlords can't hold out forever (CNN, Feb.27, 2021)

Millions of struggling tenants had a much-needed hiatus when the federal eviction moratorium was extended to the end of March. But for many landlords in the United States, the news was a nightmare. "It is important to realize that after 10 months of severe economic hardship, job loss and decline in rental income, all are hurt," said Bob Pinnegar, president and CEO of the National Apartment Association. By further extending the moratoria, landlords and property managers would "be burdened with the financial burden of providing housing to America's 40 million tenants without adequate resources, and residents could run into even more debt."

Column: Eviction Moratorium Shows the Cost of Good Intentions (Chicago Tribune, January 22, 2021).

Keeping people in their homes is valuable in preventing infection. It benefits the general public, not just tenants. But the eviction moratorium sends the bill for this benefit to a small group of people: property owners. Not all tenants are currently in need of protection, but help is not limited to those who do. People with secure jobs and good incomes can waive payment as long as the moratorium applies. And what certainty do property owners have that they will ever see a dime? When the rent finally comes due, tenants could stiffen the owner, take the money saved, and find new quarters.

Rental vouchers, not an eviction moratorium, are best for renters and landlords (The Seattle Times, January 22, 2021).

Rental vouchers not only prevent tenants from falling behind in their payments, but they also provide owners with the income they need to pay their mortgages and other bills. An eviction moratorium does not do either. A word on rental property owners. Did you know that most of them only have a handful of units? Or maybe just one? And that most single-family homes are long-term retirement investments that take years to make a profit? That may not be true in much of urban Washington, but it definitely is true of the rest of the state, including the Yakima Valley, where I live.

Property Owners Cautious About Extension of Eviction Ban (Spectrum Local News, Dec 28, 2020)

Property owners across New York are bracing themselves for a four-month extension of the eviction ban. "We have to keep paying the bills," said Debbie Pusatere, who owns several rental properties in the capital area. According to Pusatere, only about half of their tenants have paid their rent this month. She says that many have gotten into difficult times and that she works out things with several families, but others take advantage of the ban. "When you have someone on the food chain who can pay who doesn't pay, you can call it human nature or whatever, but that hurts everyone else," she said.

How eviction moratoriums hurt small landlords – and why that's bad for the future of affordable housing (Time Magazine, June 11, 2020)

When COVID-19 hit U.S. soil, the federal government issued a number of rental protection regulations, including months of eviction moratoriums. While such guidelines were made in good faith – to protect tenants who have lost their income from losing the rooftops over their heads – they have a devastating little independent landlord like Greta Arceneaux who rely on a Schlag offset handfuls of rental units for a living. For Arceneaux, the city's order resulted in an unpaid rent of $ 15,000 and government support of $ 0 to help pay maintenance expenses and other bills, including her personal mortgage. "My retirement is failing because of this," she says. The complexity of the general economic crisis and its effects on tenants are not lost for Arceneaux. "I'm sorry for him," she describes one of her tenants who has lost his job and no longer paid rent. "He's in a situation like me. But why are you throwing me under the bus? Why am I responsible for him?"

LEAVE A REPLY

Please enter your comment!
Please enter your name here