What Will Happen To Apartment Owners Tenants Not Paying Rent

What Will Happen To Apartment Owners Tenants Not Paying Rent

Banker · Saint Clair Shores, MI · Member since 2011 · 131 posts · 53 votes

As jobs disappear and unemployment claims mount, it begs the question: What will happen to tenants and landlords when the moratorium lifts?

A lot of possible problems come from the fact that many people do not know what is legal and what isn't in the face of rapidly changing laws. For instance, the federal government and states have all passed eviction moratoriums of a sort, but they apply to different people and initially had different end dates.

The United States recorded 10 million first-time unemployment insurance applications in two weeks, shattering previous records from the financial crisis of 2008-2009. State and federal systems have been overwhelmed with applicants, causing technical delays. Money from the $2 trillion stimulus package will be a while in coming, but it will give people who make under $75,000 individually a $1,400 financial boost, as well as an extra $600 bump in their unemployment checks if they lost their jobs. Rent relief, in this case, means the government steps in to pay rent when people faced with an economic collapse cannot. 

Without rent relief, tenants who were recently fired could find themselves thousands of dollars in debt when the moratorium is eventually lifted — and with little standing between them and a 14-day eviction notice.

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  • Member since 2018 · 36 posts · 47 votes
    5y

    @Francis Louis Vogel Jr Definitely not a good situation right now. The sooner everyone is allowed back to work and does so, the better for all.

  • Rental Property Investor · Vancouver, WA · Member since 2017 · 182 posts · 115 votes
    5y

    I don’t want this to seem too be cold hearted, but I just finished listening to an NPR economic podcast and they mentioned an interesting statistic. 
    The typical family of 4 where a wager earner lost their job received $50,000 from the government in pandemic assistance. Seems like this should be sufficient to keep them from becoming significantly delinquent in rent payments when you also consider the typical rent paid by this same family. 

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