Non-paying tenant in turnkey due to CDC

[Nate R.]

Is anyone else dealing with this? 

I purchased a turnkey property in Jacksonville through a well-known company that has been discussed many times on BP and haven't received rent. It appears the tenant had enough to pay the first month rent and security deposit, then stopped making payments in April. There was a story about how they were shot and in the hospital (which happened after they were late), now they're claiming to be affected by Covid-19.

This company offers a rent guarantee. They wanted to see how it played out (could they work out a payment plan?), but it's becoming clear this tenant will continue to take advantage of the CDC eviction moratoriums as long as they are in place.

The eviction moratorium was just extended again, despite a federal judge ruling it unconstitutional. There seems to be no end in sight to this unfair situation.

[Greg Scott]

I'd put a little more pressure on your property manager.  Too many are willing to throw their hands up in the air and say "not my fault".

It is still possible to evict residents (depending on jurisdiction) despite the CDC eviction moratorium.  Remember, under penalty of perjury (jail) the form the resident signed says their income was affected by COVID, they have made a good faith effort to make partial payments, and they have applied for rental assistance.  If they haven't done those, they can be evicted. 

A good resident will be in communication with the property management company and can provide evidence of rental assistance applications.  Those are good people that probably will start paying again as soon as they can.  A deadbeat tenant will just go dark because they are partying too much and don't want to be hassled.

Also, have the property management company do an inspection.  There is a high correlation between deadbeat tenants and poor housekeeping. In many places, you can still evict for health & hazard lease violations.