Corona Virus Relief bill - No evictions for a year!

General Landlording & Rental Properties
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Corona Virus Relief bill - No evictions for a year!

Patrick McGrath
Rental Property Investor 路 Westminster, MD 路 Member since 2014 路 165 posts 路 221 votes

New Bill past 10/1 states no evictions or foreclosures for 1 year for non payment as of date of bill.

Thoughts?

https://www.bloomberg.com/news/articles/2020-10-03/house-coronavirus-relief-bill-would-ban-evictions

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John UnderwoodPro Member
Investor 路 Greer, SC 路 Member since 2014 路 13k+ posts 路 17k+ votes
5y

No point in worrying about something that hasn't made it through the senate. If it gets passed we just have to hope that we have good tenants because we screened them as best we could when they moved in.

I just converted another property to Section 8 so that I have as much guaranteed rent coming in as possible.

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  • Patrick McGrath
    OP
    Rental Property Investor 路 Westminster, MD 路 Member since 2014 路 165 posts 路 221 votes
    5y

    @Nate Sanow

    Great idea! Love your thinking on this. I believe you can still evict for other lease breaking issues. But its 100% still someone to ponder.

    1Reply
  • Matt M.
    Specialist 路 Easton, PA 路 Member since 2018 路 1k+ posts 路 2k+ votes
    5y

    @Patrick McGrath

    Screening requirements? Just screen better.. 

    0Reply
  • Calvin Lin
    Investor 路 Raleigh, NC 路 Member since 2015 路 81 posts 路 210 votes
    5y

    Yes screening is super important under this type of no-eviction environment but I hope people realize the longer the no-eviction policy drags on and the talk of new ones coming on after whatever current ban expires the more tempting it is for current paying tenants to stop paying.  Remember the GFC in 2008?  After many homeowners stop paying mortgages and walk away many under the water homeowners even though could have kept paying their mortgages stop paying too because hey why pay if others are not paying and get to stay in their homes for years because foreclosures are all backed up for years?  This situations can easily escalate into something like that, except this time it will hit rentals.

    1Reply
  • Josh Nigh
    Boise, ID 路 Member since 2017 路 50 posts 路 64 votes
    5y

    @John Underwood

    I understand the reasoning...but do WE really want to become even MORE dependent on the govmit?

    Think about it.

    1Reply
  • Bonnie LowPro Member
    Lender 路 Asheville, NC 路 Member since 2016 路 1k+ posts 路 1k+ votes
    5y

    @John Underwood I've been thinking more and more about the Section 8 play as well. Since the gov't pays the greater portion of rent for a S8 tenant, I'm wondering if there will still be forbearance for landlords who can't pay their mortgage if their tenant is S8? Have you seen anything about the Coronavirus bills that address this? In other words, if landlords who don't have a S8 tenant can avoid foreclosure for non-payment of mortgages, will this still be allowed when most, but not all, of their mortgage is covered by the S8 payment?

    [email protected]
    1Reply
  • John UnderwoodPro Member
    Investor 路 Greer, SC 路 Member since 2014 路 13k+ posts 路 17k+ votes
    5y
    Originally posted by @Josh Nigh:

    @John Underwood

    I understand the reasoning...but do WE really want to become even MORE dependent on the govmit?

    Think about it.

     With what's going on in the world , absolutely. 

    Think about it.

    1Reply
  • Jennifer Donley
    Rental Property Investor 路 Saint Louis, MO 路 Member since 2018 路 228 posts 路 279 votes
    5y

    Hi All - I've got a portfolio of 26 Section 8 SFHs in B and C class neighborhoods, mostly 3 bedroom.  I also teach landlords in my local market how to maximize Section 8 for profitability and stability.  I love this niche.  I always have but I especially do now.  

    I would strongly recommend anyone looking into Section 8 contact your local PHA (the agency that administers the program in your county) and see if they have a class (likely a virtual one now if at all) that they give for landlords.  It will shorten your learning curve.  Each PHA operates a little differently so it's helpful to learn how yours does.

    Advertise on GoSection8.com (it's the only place I advertise), screen meticulously like normal (if you're not doing a Home Visit as the final part of your screening process, I'd recommend adding it to your process for all tenants.  Also, I don't worry about income multiples for my tenants but I do collect employment information) and follow the PHAs paperwork process.

    I'd also recommend learning how your local PHA sets & increases rents.  Many PMs and landlords here do not utilize these 2 processes to their full effect and miss out on some cash flow.  Feel free to contact me with questions.  I love this stuff!

    5Reply
  • Sandy Sawyer
    Realtor 路 Houston, TX 路 Member since 2017 路 177 posts 路 68 votes
    5y

    Just because somebody doesn't get evicted for a year doesn't mean they don't owe the money. If on a large scale there are squatters waiting this out, who is going to rent to them after they move out? Then there is the wave of foreclosures that will ensue. This is a pretty short-sighted approach I think. Maybe the solution is to diversify and invest where the jobs are. Rent to nurses, they have job security everywhere.

    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor 路 Sioux Falls, SD 路 Member since 2015 路 9k+ posts 路 18k+ votes
    5y
    Originally posted by @Patrick McGrath:

    New Bill past 10/1 states no evictions or foreclosures for 1 year for non payment as of date of bill.

    Thoughts?

    https://www.bloomberg.com/news/articles/2020-10-03/house-coronavirus-relief-bill-would-ban-evictions

     Every single person who voted for that bill is up for re-election. Send e-mails to your Representative and Senator letting them know this is a pivotal issue for you. There is no reason for a Federal eviction ban at this point. September unemployment was under 8% nationally and my state was 4.8% unemployment. A better plan is they can fund a renter assistance program that helps people pay rent AFTER they prove COVID hardship. The money needs to go directly to the landlord. Here is how it should work:

    1. Tenant applies for rental assistance and must prove they were out of work due to COVID. They must be getting unemployment and looking for a job to qualify. 

    2. In the application they provide the landlord name. The landlord is contacted to verify the amount of rent owed and payment address.

    3. The money is sent directly to the landlord. 

    4. ONLY if a tenant is in this program, the landlord cannot evict. 

    This makes way more sense. If people can't afford to buy food, they don't pass a law requiring grocery stores to give it away free. They give the person a SNAP card to pay for groceries. What is so hard to understand about this?

    13Reply
  • Account Closed
    Specialist 路 Bozeman, MT 路 Member since 2016 路 237 posts 路 153 votes
    5y

    As a STR investor, I'm not worried at all. I just need to make sure my rentals are for less than 30 days as per state regs. And also not worried about vacancies for my own loan payments, as business has exploded since Covid hit.

    0Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 16k+ votes
    5y
    Originally posted by @Joe Splitrock:
    Originally posted by @Patrick McGrath:

    New Bill past 10/1 states no evictions or foreclosures for 1 year for non payment as of date of bill.

    Thoughts?

    https://www.bloomberg.com/news/articles/2020-10-03/house-coronavirus-relief-bill-would-ban-evictions

     Every single person who voted for that bill is up for re-election. Send e-mails to your Representative and Senator letting them know this is a pivotal issue for you. There is no reason for a Federal eviction ban at this point. September unemployment was under 8% nationally and my state was 4.8% unemployment. A better plan is they can fund a renter assistance program that helps people pay rent AFTER they prove COVID hardship. The money needs to go directly to the landlord. Here is how it should work:

    1. Tenant applies for rental assistance and must prove they were out of work due to COVID. They must be getting unemployment and looking for a job to qualify. 

    2. In the application they provide the landlord name. The landlord is contacted to verify the amount of rent owed and payment address.

    3. The money is sent directly to the landlord. 

    4. ONLY if a tenant is in this program, the landlord cannot evict. 

    This makes way more sense. If people can't afford to buy food, they don't pass a law requiring grocery stores to give it away free. They give the person a SNAP card to pay for groceries. What is so hard to understand about this?

    Dammit Joe, quit making sense! 馃槣

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  • Kris L.
    San Antonio, TX 路 Member since 2019 路 930 posts 路 836 votes
    5y

    @JD Martin

    Thoughts are that the tenant gives the government the wrong landlord name and contact so that their cousin or something gets the money. That step might need tweaking.

    0Reply
  • Vic Liang
    Rental Property Investor 路 Portland, OR 路 Member since 2016 路 54 posts 路 36 votes
    5y

    Makes me really glad I have my tenants through Oxford House no worries about eviction with them! I don't even care about eviction bans.

    0Reply
  • Sanjay Daga
    Investor 路 Chantilly, VA 路 Member since 2015 路 2 posts 路 0 votes
    5y

    Can renters be evicted for staying after lease end, even during CDC ban

    0Reply
  • Raj G.
    Investor 路 Jersey City, NJ 路 Member since 2015 路 304 posts 路 48 votes
    5y

    this will be horrible, lots of people who can afford rent, will no pay because they have excellent excuse, the worst part is they won't even save money, they will spent here and there, it's easy money for them, "easy come easy go"...it will be disaster after 1 year.

    0Reply
  • Nikki Giddens
    Property Manager 路 Member since 2020 路 5 posts 路 1 vote
    5y

    @Patrick McGrath What state is that?

    0Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 16k+ votes
    5y
    Originally posted by @Kris L.:

    @JD Martin

    Thoughts are that the tenant gives the government the wrong landlord name and contact so that their cousin or something gets the money. That step might need tweaking.

     That's tricky for sure. First off they would need to have strict criminal penalties for fraud. I would think they could also require double applications, one from tenant and separate one from the landlord. Then verify the landlord owns the property in question and has a valid written lease and proof of receipt of past rent. 

    That would catch 99% of it, but would also require a lot of administration. 

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  • Praveen Kumar
    Austin, TX 路 Member since 2018 路 17 posts 路 10 votes
    5y

    Doesn't the article also say that non-payment of loans would also prevent automatic foreclosure for the same period? And in order to qualify for 'rent cancellation', one would need to have a real job and income loss. It's not at the discretion of the tenant. Hope we have done our due diligence in finding quality tenants that won't file for unemployment anytime soon :) 

    0Reply
  • Patrick McGrath
    OP
    Rental Property Investor 路 Westminster, MD 路 Member since 2014 路 165 posts 路 221 votes
    5y

    @Nikki Giddens

    This would be federally

    0Reply
  • Josh Nigh
    Boise, ID 路 Member since 2017 路 50 posts 路 64 votes
    5y

    @John Underwood

    Can鈥檛 beat 鈥榚m...so join 鈥榚m. Ok John. GLTA.

    1Reply
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