Don’t worry about the owners. They are rich. They do not require their tenants to pay rent. I get so frustrated with narrow-minded advocates that it’s hard for them to see how an action that might benefit one group harms others. They want to push their agenda, no matter the cost.
According to some housing advocates, the recent CDC eviction moratorium doesn’t do enough to help, and it should be the landlord’s responsibility to find government support while the tenant can’t pay rent without any recourse. Don’t these folks realize that most landlords own less than three units and NEED the rent to fund maintenance, taxes, insurance, and mortgage payments? What happens to your property when you stop paying your mortgage?
Early last month, the CDC used its powers to enact a moratorium preventing landlords from evicting their tenants for nonpayment of rent. This moratorium is valid until the end of the year, with the possibility of extension. The CDC can do this because they claim that this is not about financially supporting people in need (which is not their job), but about slowing the spread of COVID-19 (which is their job). I applaud them for recognizing the risks of homelessness and compact living situations with the spread of the virus, but what I don’t understand is why the burden falls on small “mom and pop” homeowners. Here are the often misunderstood details of the recent Eviction Moratorium.
With very few exceptions, all tenants qualify for eviction protection! To qualify, the tenant only needs to meet two requirements.
Attempt to get government support to pay rent.
Earn less than $99,000 in a year for a single filer or $198,000 for dual income families.
I struggle with the second requirement, because that’s more money than most people making their payments make in a year. According to the CDC, in order to afford a 2-bedroom home in the nation’s most expensive market, a family needs to earn $80,621 per year. That would keep rent at 30% of household income. Since the CDC referenced 30% of income, their guidelines to qualify for this moratorium means that the family that is protected from eviction could make rent payments of almost $5,000 per month. See why I say almost all renters qualify? All my tenants certainly do.
It sounds bad? It gets worse. The process to avoid being evicted for non-payment is quite simple. All that is required is for the tenant to send you a signed statement. They can get this declaration online, sign it and send it to you and prevent you from being evicted. Notice how I didn’t mention that they need to prove that they tried to get support, nor do they need to prove that they really need it. It’s important to note that this is for non-payment only, so if you have a tenant who is breaking the rules, causing problems, or just out of the lease term, you can still evict them. It’s also good that this is not rent forgiveness, or at least that’s the idea, it’s just a stay of eviction. The tenant will still owe all rent and late fees and you, as the landlord, will still have the opportunity to collect them at some point. Good luck with that!
My advice would be to start the eviction if you didn’t get the statement. If the tenant doesn’t send him that, he’s not protected. I would also suggest working with your tenant as much as possible. If they really are in need and want to work with you, let them. A partial payment is better than no payment and helping them keep their home is important in times like these. Finally, if you have any leases that are expiring, I suggest moving those contracts from month to month. At least until we get past the chaos of COVID. Having a month-to-month lease will allow you to evict based on the expiration of the lease and not non-payment.