Unpaid rent is piling up. Landlords can’t hold on forever

www.cnn.com/2021/02/09/success/eviction-...ord-plans/index.html ?

To add to Pinnegar’s comments: we are the only industry forced to continue to extend credit to customers who have no means to pay their burgeoning debt off.

Its my opinion that congress handled this wrong. I believe there should be a landlord stimulus package that would pay the landlords directly. I wrote an email to a congressman suggesting that the stimulus be set up where landlords and tenants sign affidavits under penalty of perjury attesting to what is owed and that it's covid related. Landlords can then request payments up to 60% of what is owed by the tenants. The rest is written off as a loss. Everyone wins. 60% is better than nothing and tenants get no eviction.

I dont know about other States but many Texas counties and now the State have been issuing assistance for several months now. Our portfolio here in Houston is not struggling nearly like we thought. Tenants are taking the time to apply and are getting help.

I manage a wide range of properties in Houston area. A class deals not impacted at all. B class depends on the clientele; service industry versus teachers/nurses/firemen/police. Workforce housing/C class deals all have rising delinquencies with more than 10% of households owing one or more months rent. We hired an extra person last spring and summer to chase down housing and food assistance for residents in need. Texas eviction diversion funds promised end of 2020 still not paid out. Hopefully new stimulus programs that open this week will actually be paid out in a timely manner.

I agree, with some ledgers adding up to the the multi thousands, with no relief for owners or companies. Some residents think the moratorium protects them for months and years; they are suppose to make payments, their not doing that either. So I’m confused!

Just wait when evictions start and residents start the bankruptcy process. Landlords will even take more of a beating.

Why should landlords stuck to pay for this problem? State Governments created this problem, State Governments should forgive all PROPERTY TAXES during pandemic, PERIOD. The longer the pandemic, the longer governmentment must go without collecting taxes.

It may sound nuts but it was nuts to think there would ever be a year long eviction moratorium. There were laws and contracts in place! Besides most landlords do not want to evict. Eviction, necessary at times are usually not good for anyone.
Here it goes, mandate no penalties or foreclosures for late mortgage payments for multifamily loans. A landlord should have to prove at least a 10% loss from Covid. If they could then let them forgo mortgage payments for several months to help catch up necessary bills such as real estate taxes, insurance, utilities, etc. There are many states and counties hurting. Expenses are up and tax collections is down. This would help property owners catch up on back taxes. The missed mortgage payments could be tact onto the end of the loan amortization period. Yes the apartment owner would still be charged interest on the missed mortgage payments but the missed payments would essentially act as a loan to catch bills up. The lender would need some help too. Including any mortgages late due to COVID not being counted as deliquent/bad on their books. The lenders would be made whole when the loan was paid off. The servicing of loans is pretty much computerized and should not affect too many jobs. This would cost government little, maybe some unemployment benefits. This would give relief to landlords and help them work with delinquent residents to get caugt up over a longer period of time. Some states are going to mandate up to a year for residents to pay any back rent anyway.
I know just a crazy thought! Go easy!

Any non payment of mortgage, even if through an approved program is a default and will be held against the sponsor or key principal in future acquisitions

It is better this month for us but all of our residents not paying are working. I just don't understand it

The sad part is when you see the tenant that owes rent walking with shopping bags

To further the restaurant analogy: think of a full restaurant with a line outside and a few of your tables have finished eating, can’t or won’t pay the bill for what they owe but will also not leave the table so you could seat a customer that has the ability to pay for the meal you serve them. The non payers remain at the table drinking your coffee so you are unable to seat a paying customer. Double whammy.

They must be the same people at watching their kids play softball. The game is over and they keep sitting their while the next team runs on the field to start the next game and you want their spot.

Not a bad idea ,Aaron. Many properties in Houston (including A-class properties) ended up slashing rents by 30%+ just to try to make up some of the occupancy loss experienced anyway, so this also may have helped people that really didn't want to move but felt they had no choice.

And this isn't aimed at you, but I wanted to note that one thing that I think some people keep forgetting is that one of the main reasons the eviction moratoriums were put into place was not for economic reasons, but for public health. Evicting mass amounts of renters and putting them out on the street during a pandemic where a highly contagious virus has already killed 500,000 Americans in less than a year is a horrifying idea. I know it's easy to become cynical in our business, but people are mostly good, some are struggling greatly, and the vast majority are not trying to cheat the system. It's not worth it to deny help to the many that need it based on the small percentage of jerks that take advantage. And people that need help do not need to suffer in every other way to 'prove' that they need help. I'll get off my soapbox now. Be brave, kind, and wear your masks, people!!

Some tenants are getting help, but many others are doing anything for themselves. I everyone is calling my office for help because they came seem to complete the application on there own. I had some that just waiting to be evicted which is crazy to me.

OMG yes, or even worst....new used cars, paper tags everywhere.