Rent not paid again. What to do ?

Question

I have a ￼ client that has a renter that hasn’t paid is rent in 4 months. I know there’s renter protection at the moment but can he sell the property at this time ?

He called the lender to see if they would work with him on the mortgage but they’re not willing to.

Greatly appreciate any advice. ￼￼￼

Nelson Sandoval · Answer

I don't see any restrictions for a homeowner wanting to sell their properties during this time. As a wholesaler I've talked with a few investors trying to get rid of their property. They are all very irate, building any kind of rapport to even get some details is difficult! They are just so fed up at this point and I don't blame them!

But obviously, the new owner would not be able to evict the tenants due to the renter protection in place.

So, I don't know who would want to buy such a property at that point unless its at quite a discount if the client has a reasonable amount of equity and the new owner has cash to float the property and is in it for the long game.

I also wonder if they have equity so the client could take out a heloc to cover the mortgage payments in the mean time if they are struggling financially?

Pretty crazy stuff for landlords, I feel for them, its not right whats happening out there. I read a article where the landlord, due to financial hardship, had to move back into their own property with the renters in there that won't leave and can't be evicted and don't pay rent or anything at all. The landlord is forced to pay all utilities and everything, just insane.

Kris L. · Answer

@John Fortunato

The client could sell the property, but it would be challenging, because a potential buyer would face whatever issues evicting the tenant as the current owner.  Probably going to be hard to find someone who wants to do that.

Mark H. Porter · Answer

Sure he can sell.  But when they close 60 says from now he’ll then need to take them to small claims for the money.  New owner starts a 0 owed.

Christopher B. · Answer

I'm not in California, but are there any rental assistance options available that the tenant might apply for?  Has he talked with the Tenant to confirm exactly what the problem is?  Job loss, or they just don't plan to pay regardless?  The owner could consider an EIDL loan to catch up expenses if needed, and pay it back with the Tenant's back paid rent, assuming the Tenant will eventually pay.