HELP US! No rent to be paid for more than 6 months in Seattle!

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HELP US! No rent to be paid for more than 6 months in Seattle!

Nikki Closser
Investor · MI · Member since 2019 · 112 posts · 221 votes

Seattle passed a bill that extends eviction protection for renters for 6 more months. So, basically you don’t have to pay rent for 6 months AFTER the city reopens. This could absolutely wipe out small time landlords like us! 

Will you take 10 seconds to sign this petition to veto it? 

http://www.seattleforgrowth.or...

Here is more info about what’s happening:

https://www.seattletimes.com/s...

24Reply
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Marc Winter
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
6y

Sadly, it's not just Seattle that is passing unconstitutional rulings.  (What happened to due process?)

Pennsylvania's Governor Wolf has mandated that no evictions will be allowed before July 10, 2020.  Before it was June 10.  They keep moving the goalposts.  

While the 'no evictions' rulings don't mean the rent will not be due, however, no one thought or cared about what a tenant will do with that pass to "GO".  Sure, we can sue for the back rent, but we all know that a tenant with nothing to lose can simply disappear without much trace.  If you can find them, you can't serve them.  Turns out this free pass will protect the player's rights while stripping them from the landlord.

We all must keep in mind that elections have consequences.  Please keep that in mind if we ever get the opportunity to actually vote again.

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  • Ujwal Velagapudi
    Investor/Agent/Entrepreneur · Dallas, TX · Member since 2016 · 464 posts · 564 votes
    6y

    Wow that's brutal. Wonder how much backlash there actually was at those city council meetings, or if due to lockdown no was able to attend and contest. I understand it comes from a good place, but I can just see so many people taking advantage of this, especially in this time. 

    6Reply
  • Nikki Closser
    OP
    Investor · MI · Member since 2019 · 112 posts · 221 votes
    6y

    Totally understand that people are struggling to pay rent right now. It’s horrible. And, what happens to small time landlords like me and and my husband who rely on the rent to pay our mortgage???!! There are so many of us like this who could easily lose our home. Why isn’t the city of Seattle reallocating funds to help people who truly can’t pay rent instead of completely transferring this financial problem from renters to “mom & pop” landlords who maybe put their life savings into one rental home? This could wipe out small time landlords in Seattle altogether and that would only make the high rent in Seattle even worse

    36Reply
  • Account Closed
    Specialist · OverTheRainbow · Member since 2020 · 607 posts · 909 votes
    6y
    Originally posted by @Nikki Closser:

    Totally understand that people are struggling to pay rent right now. It’s horrible. And, what happens to small time landlords like me and and my husband who rely on the rent to pay our mortgage???!! There are so many of us like this who could easily lose our home. Why isn’t the city of Seattle reallocating funds to help people who truly can’t pay rent instead of completely transferring this financial problem from renters to “mom & pop” landlords who maybe put their life savings into one rental home? This could wipe out small time landlords in Seattle altogether and that would only make the high rent in Seattle even worse

    You are Not Welcome in Seattle. Do not underestimate what is going on.

    How are people who don't pay their rent for months and months EVER going to get "caught up"? Answer: There is no intention that they will.



    Seattle to provide eviction protection for 6 months after coronavirus moratorium expires

    May 4, 2020 at 8:11 pm Updated May 4, 2020 at 9:17 pm


    Monday’s council vote was 9-0, despite opposition from many landlords.
     
    “This legislation … can help people stay housed, and that is the bottom line,” González said

    15Reply
  • Brian Hughes
    Seattle, WA · Member since 2017 · 275 posts · 223 votes
    6y

    Unfortunately the COVID situation is the excuse that some members of Seattle leadership needed to try out housing policies they have been wanting long before the emergency declaration - no late fees on rent,  no evictions for any reason,  housing payments basically optional,  landlords unable to enforce any rental agreement terms.

    They aren't done yet either - another ordinance is already in the works preventing us from using eviction history in screening potential applicants also supposedly temporary for 6 months after the emergency orders end,   and it also extends the prohibition on any late fees for a year.

    I hate to say it but I have before and I will again - do not invest new money in rental properties in Seattle without pricing in all these additional risks.    If you have rental property now,  especially if you only have one or a few units,  make sure you have an exit strategy.

    Note:  right now all indications in Seattle, at least from what I have seen from my limited but invested point of view seem to be that most tenants are doing their very best to keep paying their rent.  We should all thank them for that.   I have one tenant out of 7 that is 1/2 month behind for April but they payed all of May - and May was supposed to be worse.  Nationally it may be May is worse, but at least in Seattle things seem to be holding up OK so far but it is still early.   Also the much ballyhooed rent strikes for May being pushed by some of our local city council memberships I haven't heard anything about,  probably meaning they didn't amount to much.    I suspect this is also an indicator that despite the loud calls by some factions for this type of action,  most people realize its a lose/lose proposition.

    The risk with all these eviction and late fee bans is in the long term it probably will 1) erode the sense of responsibility around paying rent (and costs for any other essential services) and 2) attract the type of people who are more likely to take advantage of such a situation for their own gain.

    19Reply
  • Varun Talluri
    New to Real Estate · Member since 2019 · 52 posts · 35 votes
    6y

    If that is the case why would any small investor invest in Seattle area? Doesn't it make unattractive for investments and drive the prices down? why would the home owners who pay mortgage agree to this? I feel Sorry for all the small investors. 

    8Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    6y

    @Nikki Closser Then think of the backlog in the courts , add another 3 months to that , more if the tenant postpones or appeals . Then at least in my parts you have to schedule the sheriff to evict , and they will be backed up also . 

    Landlords in Seattle need a Great lawyer and fast 

    8Reply
  • Marc Winter
    Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    Sadly, it's not just Seattle that is passing unconstitutional rulings.  (What happened to due process?)

    Pennsylvania's Governor Wolf has mandated that no evictions will be allowed before July 10, 2020.  Before it was June 10.  They keep moving the goalposts.  

    While the 'no evictions' rulings don't mean the rent will not be due, however, no one thought or cared about what a tenant will do with that pass to "GO".  Sure, we can sue for the back rent, but we all know that a tenant with nothing to lose can simply disappear without much trace.  If you can find them, you can't serve them.  Turns out this free pass will protect the player's rights while stripping them from the landlord.

    We all must keep in mind that elections have consequences.  Please keep that in mind if we ever get the opportunity to actually vote again.

    20Reply
  • Sandy Gabin
    Rental Property Investor · Lawrence, MA · Member since 2020 · 252 posts · 153 votes
    6y
    Originally posted by @Marc Winter:

    Sadly, it's not just Seattle that is passing unconstitutional rulings.  (What happened to due process?)

    Pennsylvania's Governor Wolf has mandated that no evictions will be allowed before July 10, 2020.  Before it was June 10.  They keep moving the goalposts.  

    While the 'no evictions' rulings don't mean the rent will not be due, however, no one thought or cared about what a tenant will do with that pass to "GO".  Sure, we can sue for the back rent, but we all know that a tenant with nothing to lose can simply disappear without much trace.  If you can find them, you can't serve them.  Turns out this free pass will protect the player's rights while stripping them from the landlord.

    We all must keep in mind that elections have consequences.  Please keep that in mind if we ever get the opportunity to actually vote again.

     Hi Marc! Wanted to say thank you for letting me know when tenants can be evicted in Pennsylvania. I'm about to inherit tenants, so want to be prepared if anything changes. 

    3Reply
  • Sandy Gabin
    Rental Property Investor · Lawrence, MA · Member since 2020 · 252 posts · 153 votes
    6y
    Originally posted by @Nikki Closser:

    Seattle passed a bill that extends eviction protection for renters for 6 more months. So, basically you don’t have to pay rent for 6 months AFTER the city reopens. This could absolutely wipe out small time landlords like us! 

    Will you take 10 seconds to sign this petition to veto it? 

    http://www.seattleforgrowth.or...

    Here is more info about what’s happening:

    https://www.seattletimes.com/s...

     Hi Nikki,

    Sorry to hear about that! Do you know if there will be a program or loan to help you out with the property taxes, mortgage, etc.?

    1Reply
  • Aleejandro Dela Vega
    Investor · Las Vegas, NV · Member since 2015 · 71 posts · 38 votes
    6y

    @Nikki Closser

    That’s terrible. Here in Las Vegas it’s July 24th... for now. Ford (our very left wing AG) might extend that. I wrote him and our governor but I don’t expect to get far.

    Unfortunately landlords are easy targets and we are viewed worse and worse in the news and media these days.

    2Reply
  • Tom Makinen
    Member since 2019 · 226 posts · 115 votes
    6y

    At least it isn’t rent forgiveness, but sucks nonetheless.  They are going to be sued up the nose.  

    3Reply
  • Christopher Vaughn
    Wholesaler · Bellevue, WA · Member since 2016 · 32 posts · 7 votes
    6y

    Signed and shared!

    3Reply
  • Blake Weldon
    Rental Property Investor · Livonia, MI · Member since 2020 · 15 posts · 33 votes
    6y

    @Nikki Closser

    This is a crime! Those who passed this should be personally responsible to assist landlords if the tenants do not pay.

    It's sad but I will never invest in a far left leaning State for this exact reason. Once you can no longer control your own destiny is the juice worth the squeeze?

    12Reply
  • Nikki Closser
    OP
    Investor · MI · Member since 2019 · 112 posts · 221 votes
    6y
    Originally posted by @Sandy Gabin:
    Originally posted by @Nikki Closser:

    Seattle passed a bill that extends eviction protection for renters for 6 more months. So, basically you don’t have to pay rent for 6 months AFTER the city reopens. This could absolutely wipe out small time landlords like us! 

    Will you take 10 seconds to sign this petition to veto it? 

    http://www.seattleforgrowth.or...

    Here is more info about what’s happening:

    https://www.seattletimes.com/s...

     Hi Nikki,

    Sorry to hear about that! Do you know if there will be a program or loan to help you out with the property taxes, mortgage, etc.?

     Nothing at this point! 

    0Reply
  • John Barrett
    Rental Property Investor · Everett, WA · Member since 2015 · 458 posts · 386 votes
    6y

    @Nikki Closser While this is a terrible policy decision by the Seattle City Council and shows this group of "leaders" lack any semblance of understanding of the economic principles, this is not the end of the world for your investment.  Even in a city as poorly run as Seattle, with leaders who are actively advocating that tenants break the terms of their leases, evictions are still a relatively rare.  The May rent strike looked really scary on social media but did not materialize into any discernible impact in May rent collection.

    What this means for investors is that we will need to diligently screen tenants (will likely need to be more creative given the new rules) and work to maintain positive relationships with them.  In the end, the vast majority of people are decent and just looking for a comfortable, safe & clean place to live.  Provide your tenants with that and good customer service and I don't think this insanity will really have much of an impact.

    Best of luck,

    John

    13Reply
  • Account Closed
    Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
    6y
    Originally posted by @Nikki Closser:

    Totally understand that people are struggling to pay rent right now. It’s horrible. And, what happens to small time landlords like me and and my husband who rely on the rent to pay our mortgage???!! There are so many of us like this who could easily lose our home. Why isn’t the city of Seattle reallocating funds to help people who truly can’t pay rent instead of completely transferring this financial problem from renters to “mom & pop” landlords who maybe put their life savings into one rental home? This could wipe out small time landlords in Seattle altogether and that would only make the high rent in Seattle even worse

    The thing is the vast majority of renters are not struggling AT ALL to pay rent right now. If they’ve been furloughed or had their hours reduced, they’re getting over $4,000 a month in unemployment because of the extra $600 a week from the CARES act. A lot of them are just taking advantage of the free rent. 

    When Seattle passed the “first come first serve” law, I said screw it and sold. I started investing in the Midwest and I’ll only buy on the coast if we have another big downturn. Seattle keeps getting more and more hostile to landlords. 

    12Reply
  • Account Closed
    Specialist · OverTheRainbow · Member since 2020 · 607 posts · 909 votes
    6y
    Originally posted by @Nikki Closser:

    Seattle passed a bill that extends eviction protection for renters for 6 more months. So, basically you don’t have to pay rent for 6 months AFTER the city reopens. This could absolutely wipe out small time landlords like us! 

    Will you take 10 seconds to sign this petition to veto it? 

    http://www.seattleforgrowth.or...

    Here is more info about what’s happening:

    https://www.seattletimes.com/s...

     Okay, if you want to do more than wimper about it, contact Bob Ordal, Seattle Attorney (if he is still practicing law) who is very, very good and experienced in real estate and landlord friendly and ask him if there is a 4th Amendment case involving the matter. Your assets are being seized without being consulted and without compensation. You should also contact Windermere, ReMax, John L Scott, Keller Williams, Coldwell Banker, and tell the Brokers you will no longer be buying properties in Seattle because of the threats and liabilities of doing so.

    They have attorneys and lobbyists who address issues like this. You cut into the real estate agents income and they will come running to your rescue.

    This is a very serious matter and if you don't take a stand like the lady running the hair salon in Dallas, you have no right to complain. Sorry, that is just how it works. No complaint, they get away with it. The reason they are doing this now is because not enough people complained (sued) about making it a felony to contact people in foreclosure. They got away it and now they know they can get away with this is you wiffle out of protecting your rights.

    It is very serious.

    Fourth Amendment - U.S. Constitution

    Fourth Amendment - Search and Seizure

    The right of the people to be secure in their persons, houses, papers,
    and effects, against unreasonable searches and seizures, shall not be
    violated, and no Warrants shall issue, but upon probable cause,
    supported by Oath or affirmation, and particularly describing the place
    to be searched, and the persons or things to be seized.

    19Reply
  • Account Closed
    Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
    6y

    I think its high risk to own C class rentals in high end coastal markets. The renters there are struggling even in good times. In the midwest and other low cost markets the tenants can kind of afford the rent of 800-1000/month. In Seattle that gets you nothing. While the wages for service jobs are not much higher. If you owned A type rentals renting to Amazon or Microsoft tech workers, this would not really affect you as your tenants will pay rent anyway. 

    That doesn't mean I agree at all with the ridiculous short sighted ordinances like this one. Unless we are going to outlaw all property ownership, the government should not impose willy nilly on individual property rights. The solution to a real housing problem is not sticking it to the landlords. While I see the struggles of the working class in America who have been systematically screwed by the system for decades, stealing housing ala Robin Hood is a really stupid way to try to alleviate the issue. Getting Bezos to pay his warehouse staff a reasonable salary so they can actually afford rent where they work would be a better approach

    8Reply
  • Mark Brogan
    Investor · Roanoke, VA · Member since 2012 · 1k+ posts · 374 votes
    6y

    @Nikki Closser

    Sadly lots of the bigger players in my area are converting their rental business to selling them the homes on a note for the same reasons in Virginia, the judges won’t throw people out for non payment of rent

    0Reply
  • Nikki Closser
    OP
    Investor · MI · Member since 2019 · 112 posts · 221 votes
    6y

    Thanks for the info. In the future, not sure if you even care, but you might come off as more respectful if you don’t tell someone they are “whimpering”.  

    11Reply
  • Kenneth GarrettPro Member
    Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
    6y

    @Nikki Closser

    That’s a tough situation.  When governments passed these legislations across the country it solved one issue and created another.  In some cases, even though the tenant was still working they chose not to pay rent.  That was never the intent.  It was for affected tenants.  It also didn't mean you get to live rent free.  It was to be assistance for tenants having difficulty in paying rent.  It was not the intended consequence to stick it to the landlord.  This unintended consequence is the result.  

    I have been fortunate where most of my tenants have paid.  They might be late or short on the rent amount, but at least there paying. Enough to cover my costs; mortgage, insurance etc.  My state governor also issued the no eviction order.  The courts are closed anyway so we are stuck at this point.  We need to work with our tenants versus issuing notices.  You push to hard you get nothing.

    Hopefully we can all get through this without losing properties.  

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    The sales market is strong. This may be the perfect opportunity to sell off your investments and move your money to a state with reasonable laws and just courts.

    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    19Reply
  • Wesley W.
    Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    6y
    Originally posted by @Marc Winter:

    Sadly, it's not just Seattle that is passing unconstitutional rulings.  (What happened to due process?)

    Pennsylvania's Governor Wolf has mandated that no evictions will be allowed before July 10, 2020.  Before it was June 10.  They keep moving the goalposts.  

    While the 'no evictions' rulings don't mean the rent will not be due, however, no one thought or cared about what a tenant will do with that pass to "GO".  Sure, we can sue for the back rent, but we all know that a tenant with nothing to lose can simply disappear without much trace.  If you can find them, you can't serve them.  Turns out this free pass will protect the player's rights while stripping them from the landlord.

    We all must keep in mind that elections have consequences.  Please keep that in mind if we ever get the opportunity to actually vote again.

    Never to be outdone with treading on peoples' rights, NY's wonderful governor signed his 328th executive order (no, that's not hyperbole) extending the "no evictions" order through August 20th, allowing all tenants to use their escrowed security deposits for rent, and banning all forms of late fees.  So, tenants can now legally squat and not pay a dime until at least August 20th, at which point they would only owe the back rent (sans penalties) less their security deposit.  At that time (unless this order is extended once again) the beleaguered landlord can THEN begin the lengthy and expensive process of removing the tenant through eviction court, which is sure to have a months-long back log by that point.

    @Nathan Gesner is right, as usual.  There is really no incentive remaining to invest in these states, unless you are a masochist or philanthropist (or both). 

    6Reply
  • Lee Falkenhagen
    Real Estate Broker · Member since 2018 · 18 posts · 6 votes
    6y

    @Wesley W. Has anyone looked into the laws to see if you can push the payment date ahead...i.e. today you ask for rent on the 1st for the next month...why not ask for the rent 3 months in advance for new tenants and make them pay extra the first 3 mlm months to spread the go forward. That means starting the second quarter, you are ahead and if they miss, start the eviction...

    1Reply
  • Ricardo P.
    LakeWood , CA · Member since 2018 · 268 posts · 331 votes
    6y

    The problem here is WE as landlords aren’t sticking together like tenants do! Just like they have a voice we have a louder one. Y? We pay property tax! We all need to start suing Every city and every state around the world 

    7Reply
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