What's going to happen to the rental market?
Haven't seen much about this in a while. Is anyone concerned about what's going to happen to the rental market if there are mass evictions or if the eviction moratorium keeps getting extended?
On one hand, there could be mass homelessness created by landlords evicting past-due residents. On the other hand, the Biden admin and state governments will probably continue to extend the eviction moratorium, which could lead to an accumulation of large balances. Should landlords just write-off the losses now and bank on the economy recovering with the vaccine rolling out? Just curious to see what you all think about this.
I have also been morally trying to come to terms with the fact that I might be contributing to an eviction crisis. It just doesn't sit right with me.
It’s definitely an intricate problem. Whichever side you go with then you are tremendously hurting the other. In NY, the eviction moratorium has been extended to May 2021. I think it’ll probably be extended again until the fall. But not again after that. While you should sympathize with people during the pandemic, you have to also realize landlords are hurting. Let’s say evictions are postponed again until September 2021. Pandemic started in March 2020. That means you have had 18 months to figure something out. At that point, a tenant should just willfully leave because after all that time, if you have not rectified your situation then you probably won’t be paying anything even if given another 3-6 months. Also, wouldn’t be surprised if landlord groups successfully take a case to the supreme court citing the takings clause. In essence, government has mandated that tenants stay in place without paying rent. That can be arguable in court. But hey we’ll see🤷🏾♂️
I mean if you’re a landlord hopefully you’ve been writing off some of the past 18 months of delinquency already
To add on to my post below, minus the first month or two of quarantine, over a year and a half ago, we have not seen any rise in delinquency.
I'm not saying that as if "it's only a percent or two" either. We have not seen any increase in delinquency.
Perhaps this is more impactful in other markets, but as a multifamily developer, I've had to evict a total of 1 person across all of the deals, buildings, and units I've built. Ever. It just...isn't an issue, especially if your property management does their job correctly upfront and doesn't allow fraud in the building in the first place.
I understand COVID causes a crisis for renters and in a lot of ways that crisis is ongoing, and there is plenty potential for pain for landlords left holding the bag, but I'm not entirely sure who those landlords are. Mom and pop owners in small towns? Slumlords of class C minus properties in bad areas? I have not seen any issues in the institutional space.
Count_Chocula - have you guys had dramatic issues with this on your stabilized assets?
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