The COVID-19 pandemic has brought on unprecedented challenges, and the real estate industry is no exception. With mass layoffs by companies, many Americans are out of work, and for the millions of Americans living on paycheck to paycheck, this has made it impossible for them to pay their rent.
To help these struggling families who would be homeless, otherwise, the US government passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) back on March 27. This law, apart from providing financial assistance to families, workers, and small businesses impacted by the pandemic, prohibited the eviction of tenants who live in certain housing types for not being able to pay their rent.
Under the CARES Act, an eviction moratorium was implemented, which banned the eviction of tenants living in rental properties that are financed with a federally-backed mortgage or are classified as government housing. Legally, landlords were not allowed to evict tenants of such properties for 120 days. While this came as great news for cash-strapped tenants who were unable to pay rent, it has also impacted landlords greatly.
- Small-time landlords are impacted the most: The eviction moratorium imposed by the US government has largely impacted small-time landlords, most of whom rely on monthly rental payments for their income. These are mom and pop landlords who do not have other sources of income apart from their rental properties.
- Some tenants not paying rent for non-COVID related reasons: Although the moratorium applies to only tenants who have been impacted by COVID-19, there have been several landlords who claim that some tenants refused to pay their rent even though situations were unrelated to COVID.
- Nowhere to turn to for struggling landlords: Some landlords even lost tens of thousands of dollars as a result of missed rental payments, utility bills, attorney fees, and more.
- Importance of knowing the laws: There are some laws that may differ based on the county or municipality that you belong to, which is why it is important for you to check local laws and even consult with local eviction lawyers and real estate professionals to understand current eviction law.
Most states are prevented from assessing penalties such as late fees and interests for the inability to pay rent or late payment. At the same time, landlords must remember that the eviction moratorium does not mean tenants are freed from their obligation to pay any back rent that they owe.
– The Multifamily Review Team
Hi, my name is Michael Avent. I founded The Multifamily Review in 2020. I’m a Commercial Agent at Northcap Multifamily located in Las Vegas, Nevada. My vision for The Multifamily Review is to be the most trusted resource for all Multifamily Investors and Industry Professionals. We strive to offer the best and most up to date content to our readers and are always open for suggestions. Make sure you sign up to join our newsletter to stay up to date on our latest blog, ebook, and more exclusive content that’s coming your way! The Multifamily Review team and I look forward to building a deeper relationship with you!
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