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Breaking News: White House Bans Evictions for the Rest of 2020

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Did Trump just “cancel rent” for tenants in America? Let’s talk about it.

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I'm a landlord, and when I saw the news yesterday, I have to admit I was a bit alarmed. Some of the news articles out there sound like rent is canceled for the rest of the year. But that's not actually the case.

Here’s the deal: The Trump administration announced that the CDC will halt COVID-19-related evictions through the end of 2020. The order is set to start September 4 and last through December 31.

Sounds scary, right?

But don’t panic just yet! I’ll break down what this means for you as a landlord or investor. Here are five things you need to know.

Related: Dear Tenants—I’m Sending This Letter to My Tenants Today

5 Things to Know About Temporary Halt on Evictions

No. 1: Only applies to tenants impacted by COVID-19

First and perhaps most importantly, despite the dramatic headlines, the eviction ban only applies to tenants who are unable to pay rent due to COVID-19. In other words, rent is not “canceled.”

According to the Wall Street Journal, unemployment is hovering around 10% right now, so 90% of your tenants will likely still have a job and be able to pay their rent.

No. 2: Tenant must provide proof

Closely related to the first point, each tenant on the lease will have to fill out a declaration form that proves they've tried to get government help and truly demonstrate, to a judge, that they cannot pay rent due to the impact of the pandemic. Examples of these hardships include loss of income, loss of work hours or wages, layoffs, or extraordinary out-of-pocket medical expenses.

In fact, the tenant will have to show that eviction would lead to them becoming homeless or having to move in with someone else.

Related: Will the Real Estate Market Crash Due to COVID-19?

No. 3: Some evictions are allowed to proceed

The draft of this order says that evictions for reasons other than not paying rent will be allowed to move forward. So if you’re a tenant and you decide that because of this you can move in 90 cats and trash your house and the landlord can’t do anything—well… just don’t do that. You’ll likely still be evicted.

No. 4: Moratorium only applies to certain tenants

The eviction moratorium only applies to tenants who were financially eligible for a stimulus check earlier this year. Those tenants are individuals who earned less than $99,000 in income or couples filing jointly who earned $198,000 or less on their most recent tax return.

No. 5: Tenants are responsible for paying back missed rent

Even if a tenant proves to a judge that they truly couldn't pay rent due to COVID-19 and an eviction is halted, the declaration form states that fees, penalties, and interest for not paying rent on time as required by a lease agreement may still be charged or collected.

Additionally, at the end of the temporary eviction halt, the landlord may require payment in full for all payments not made prior to and during the temporary halt. Failure to pay may make tenants subject to eviction at that time. In other words, legally the tenant will still be responsible for all that missed rent if they choose not to pay.

Of course, this just creates a much bigger problem down the road and may lead a glut of evictions after the New Year. But, hey—that’s government for you. Why solve a problem today when you can kick it down the road until after the election?

Advice for Rental Property Owners

My suggestion as a landlord: follow the rules, help those tenants who truly have need, and create a win-win solution with your tenant (like the one I proposed in this video way back in March when this fear of tenants not paying rent first hit the world).

I’m going to treat tenants like real humans and talk with them about their options. And worst case, I’ll create a payment plan next year for those who truly need it.

And look, tenants—if you have the means to pay your rent, then pay your rent. This eviction halt does not mean rent is canceled. Don't be a jerk. Your landlord needs rent to be able to pay their mortgage or else they'll lose the property to foreclosure and you'll be kicked out by the bank. That doesn't help anyone.

Landlords, remember, your tenants are going through a hard and scary time, too. So, let’s treat everyone with dignity and respect and work together to emerge from this quagmire a more resilient society.

I’ll certainly be keeping you updated as this story continues to develop throughout the year.

Questions? Comments?

Join the discussion in the comment section below.

Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He is a nationally recognized leader in the real estate education space and has tau...
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    Erik Stenbakken Investor from Nortnern Colorado
    Replied 16 days ago
    Thanks for the overview, Brandon. Yeah, when I saw the first headline on a major news site -- it looked pretty scary. Your breakdown is less dramatic, but more hopeful.
    Nathaniel Walker Investor from Tampa, FL
    Replied 16 days ago
    Thank you Mr. Turner for providing you're anayliss of the eviction crisis, there is hope as many people are getting back to work so this should only affect a small percentage of the overall Landlords.
    Troy Whitney Rental Property Investor from Seattle, WA
    Replied 16 days ago
    I don't hear anything about the government banning foreclosures until the end of the year. Is this really on landlords and the lenders have carte blanche to carry on and foreclose if they like?
    Michael Casile
    Replied 14 days ago
    Yes, it is a squeeze on small real estate investors. Governments can keep forcing us to pay the taxes, insurance can still be collected, and the bank can get what we contractually owe them. Only people squeezed here are landlords.
    Chloey M.
    Replied 16 days ago
    And if I'm not mistaken, this only applies to people have government-subsidized loans on their homes. In other words, if you are a cash buyer or your house is paid off, this moratorium doesn't apply to you. Please correct me if I'm wrong!
    James McMillan Investor from Greensboro, North Carolina
    Replied 15 days ago
    This one applies to ALL residential rentals with the terms as described in the article.
    Russell Brazil Real Estate Agent from Rockville, MD
    Replied 16 days ago
    That was the case under the CARES Act. That is NOT the case with the new executive order/CDC guidelines. It is blanket of all rental units.
    Eric James from Malakoff, TX
    Replied 15 days ago
    In that case, a legal challenge is in order.
    Miranda Paton
    Replied 13 days ago
    I believe those legal challenges will be forthcoming. Given that the CDC has issued this law, anyone arguing against the eviction moratorium will have to be prepared to explain why it's not a matter of public health to prevent a wave of people from becoming homeless during a pandemic. Will that pressure trump whatever rights a property owner has? I don't know.
    Justin M. from San Antonio, TX
    Replied 16 days ago
    Are there any relief options for the landlord if a tenant cannot pay? I guess that vacancy fund comes in handy at that point.
    Sherry Eklund Investor from Oceanside, California
    Replied 16 days ago
    I have a tenant that purchased a home out of state and is living free in my rental property, in WA State, until escrow closes. I’ve discounted their rent for four months, then they just stopped paying. Why? Because they could.
    Michele Klebuc-Simes
    Replied 14 days ago
    Suggest you see if you can obtain a judgment against them and then register your lien against their new property. Also the very process of bringing a lawsuit should show on their credit report. If you cannot get judgement quickly you may also be able file a lis pendens, which is notice of a claim/lawsuit against the property. All of this is subject to the laws of both the relevant jurisdictions. Wish you success.
    Suzanne Villanueva
    Replied 15 days ago
    Can you file to get a judgment against the tenant, so it affects their credit? Lender will be checking such things right up until close. Clearly if they are buying a house, it is not inability to pay that is preventing their rent payments.
    Jim L. Professional from Greater Seattle area, WA
    Replied 15 days ago
    Washington's COVID 19 eviction moratorium expired Aug. 1. In view of that expiration (frankly, even if it were still in force) and the Federal moratorium's limitations described above, the renter should understand that they aren't living free, they're just deferring payment. If they have the means, they are better off paying now.
    Robert Haney Investor from Sugar Land, TX
    Replied 13 days ago
    Jim, You must live in a state that will allow you to get a judgement and then garnish wages to obtain payment for the back rent. Then your talking about rent not being "canceled" makes sense since you have some hope of EVENTUALLY being paid. Here in Texas we are in a debtor's state. There is no garnish of wages or collection against autos, furniture, etc. In other words, judgements against renters are extremely rarely collected. The rent IS EFFECTIVELY LOST. The fact that it is not "cancelled" does not matter in the least. If a landlord in Texas is stopped from evicting then the GOVERNMENT is forcing the landlord to pay for housing for tenants with no practical way to ever be paid. I would rather the government force me to paid the tenants' car payment instead of their housing. Maybe paying for both is coming for socialist America.
    Jared Shoemaker Rental Property Investor from Berwick, PA
    Replied 15 days ago
    So find the new house they bought and move into it! Wouldn’t that be great!!
    Daniel Green Investor from Weehawken, NJ
    Replied 15 days ago
    Or put a lean on the new house.
    Elisabeth Lernhardt
    Replied 15 days ago
    Having run a business for 20 years in California , I can tell you , the details in this stay does not matter. The dead beats know this better than you and me. If you have no credit, don't pay taxes, not even a bank account you can live for free. No judge will rule against you. I just can not believe the Trump administration is throwing landlords and capitalism under the bus.
    Robert Johnson
    Replied 4 days ago
    Exactly.
    Hunter Straus from Atlanta, Georgia
    Replied 15 days ago
    Well I think the big question is whether the "under perjury" clause will be enforced at all; the CDC distribution (https://s3.amazonaws.com/public-inspection.federalregister.gov/2020-19654.pdf) states that the tenant has to affirm that they were impacted and tried to use the resources available to them and work with the landlord, but doesn't really demand proof, just "you better not lie about it." The LL can only provide proof that this claim wasn't followed (maybe enough for a judge?): I am using best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit, taking into account other nondiscretionary expenses; See below for the form that the tenant is supposed to sign: https://www.cdc.gov/coronavirus/2019-ncov/downloads/declaration-form.pdf
    Michael Casile
    Replied 14 days ago
    My son read the bill ... and it seems that ... as long as tenant signs the affidavid ... that's about it. I highly doubt any will be forced to truly "prove" all their actions or assertions of actions.
    Eric V. Rental Property Investor from Red Bank, NJ
    Replied 15 days ago
    In NJ, This means rent is Cancelled. Shows just how important screening and solid employment history is when accepting tenants. This will burn hard on landlords who have let questionable tenants in. Been there done that by some top notch cons. I predict PAIN.
    James McMillan Investor from Greensboro, North Carolina
    Replied 15 days ago
    Amen Eric! I went to 720 minimum FICO, job with a career track, rent/income: 25%, 2 yr Verifiable rental history minimum, identity and income verification Before showing, etc.- haven’t had a bad renter since and that Desired highly qualified renter Has always showed up with little or no change in vacancy time. The right renter wants a tight ship; the scammers run.
    Mike De Lota Rental Property Investor from Austin, TX
    Replied 15 days ago
    Thanks for the breakdown Brendan. I agree that being proactive and working WITH your tenants is a great way to save yourself a headache down the road.
    Stephanie Donahue
    Replied 15 days ago
    They have to prove nothing. They sign a piece of paper from the CDC.
    Michael Casile
    Replied 14 days ago
    Yes, my son read the bill ... and it seems that if they're willing to state that it's all Covid's fault (a disease that kills 0.00x% of the population among those less than 80 years old with no co-morbidities) ... then it is highly unlikely they will need to "prove" anything. Guessing Brandon rents in some different markets ... but I believe 100% of my tenants make < $99K/year as individuals or $198K/year as couples.
    Bob Beaumont from Long Beach, California
    Replied 15 days ago
    Exactly! ~ I was waiting for this comment. They click and fill out a form online. That's it!
    Greg Robinson from Jacksonville, Florida
    Replied 15 days ago
    Is it possible to file an insurance claim for lost rent?
    Robert Johnson
    Replied 4 days ago
    Yes. But there is usually a $1,000 cap. Some policies have a $10,000 cap.
    Alfred Litton Rental Property Investor from Valley View, TX
    Replied 15 days ago
    If I read the order correctly, it applies only to properties with "covered" tenants. My understanding is that a "covered property" is one with a govt-backed mortgage (Fannie, Freddie, USDA, VA, etc.). That would mean properties owned outright or through private lending would be exempt from the moratorium just like they were under the CARES act. Am I correct on this? Anyone else notice this as well?
    Angel Chaney from Parma, OH
    Replied 15 days ago
    No, there aren’t any exemptions with regard to properties owned outright or through private lenders.
    David Wandel Real estate investor from Pasadena, MD
    Replied 15 days ago
    you can click the link below and let your representatives and the White House know where you stand on this https://nationalreia.org/actio...
    Heather Swope Rental Property Investor from Plainfield, IN
    Replied 12 days ago
    I just filled in a response and sent it.
    Norm Chrostowski Real Estate Investor from Lakeview, New York
    Replied 15 days ago
    Awesome. I was wondering about that. I have a tenant (drama queen) that is a slob. I’ve been very passive with respect to her cleaning habits, or the lack there of. She also had 2 additional animals in the apartment not apart of the signed monthly lease agreement. Needless to say the place smelled like a kennel. I have pondered eviction with her, but she does pay on time, and doesn’t call me with a leaky toilet every 3 weeks. On the contrary I rarely ever hear from her. Only the first of the month when she calls and delivers the rent. So I guess there’s trade offs right? People will be people and there has to be some leeway I guess from both sides I think. Anyway, I did have a talk with her and the dogs are gone, and she’s been warned about her cleaning practices. We’ll see how it goes over the next few months. Mind you she’s been there for going on 9 years as well. Something also to be said about long term tenants. Sorry about the ramble, figure it might be good to share real world stuff, with a guy in the trenches everyday as a landlord. Thank you again, I know the skinny of what to explain or tell the tenant with regard to the virus and non-Payment of rent. In my case, I believe I have every right to evict if I so choose. Not for non-payment of rent but breach of contract.
    Karen Ellsworth Wholesaler from Pleasant Grove, Utah
    Replied 15 days ago
    Great article - Thanks Brandon!!
    Byrne McKenna Rental Property Investor from Evergreen, CO
    Replied 15 days ago
    Brandon, operating in Colorado, I understand our state constitution does not allow the government to "commandeer" your property without just compensation. I am not an attorney but it would seem logical that if the government mandates you to house a person who can not pay the rent, they have in effect just commandeered your property. Your thoughts?
    David M. Hagley, Jr. New to Real Estate from Greenfield, IN
    Replied 15 days ago
    My local REIA had their attorney discuss this CDC order today. We had just filed a suit against the state of Indiana to lift the eviction moratorium back in July. It was lifted in August. As with the state order, it is unconstitutional on the federal level as well as the state. This is part of the argument that was used with the suit. Also, by this order being put in place, some judges will not even hear any evictions at all, COVID related or not. Also, since when does the CDC have authority over housing. Our attorney is staying on top of it.
    Heather Swope Rental Property Investor from Plainfield, IN
    Replied 12 days ago
    @David M. Hagley, Jr. I am in Indiana too. I need to sell one of my properties, and I can't sell to an investor because of HOA ruls (not that an investor would want to buy a property with a non-paying tenant). Her lease ran out on Aug 31. After the IN moratorium was lifted, notified her to be be out by Sep 30. I really hope she goes. I need to sell this property.
    David M. Hagley, Jr. New to Real Estate from Greenfield, IN
    Replied 15 days ago
    Here's the national REIA link to send messages to your senators, representatives, and the White House. https://nationalreia.org/action-center/?vvsrc=%252fcampaigns%252f77003%252frespond
    Konstantin Samorodskiy Investor from Dayton OH/Cincinnati, OH
    Replied 15 days ago
    Their proposed adjustments dont move the needle. Making it only harder instead... Good movement but with strange main narrative.
    Eric James from Malakoff, TX
    Replied 15 days ago
    This means, landlords should only rent to new tenants who can pay upfront for their rent for the remainder of the year
    Bonny Sanders
    Replied 15 days ago
    The problem will be that in January, these tenants who owe all this back rent, will take off and leave no forwarding address, so either way the Landlord takes the brunt of this decision.
    Miranda Paton
    Replied 13 days ago
    Yes, the scammy, short-sighted tenant will do that. But who will rent to them next? If landlords have not all been diligent about reviewing applications and checking references and rental histories before, that will certainly start happening now. My plan is to offer my tenants a "good deal" first. I'll invite them to keep me informed of any potential payment problems and to set up a payment schedule for any missed payments while keeping current on their rent. I want to be my tenants' first creditor. But I'll also let them know that they can also have a "bad deal" from me: I will evict them, pronto, if they put me into the position where that needs to happen. It's up to them to earn the kind of treatment from me that they want. But I understand and value the "known quantity" of good, long-term tenants and no vacancies, so you won't find me me being imperious with my tenants. That's something I can't afford.
    Lucy Meng Investor from kirkland, Washington
    Replied 15 days ago
    I also heard that if the landlord wants to sell the house or move into it themselves, then they can still evict? Please correct me if I'm wrong, cos I'm about to get a lawyer and evict my tenant who have the mean to pay but decided not to since May.
    Ken Virzi from Long Beach, California
    Replied 15 days ago
    They do not need proof, they just need to sign an affidavit, and can lie about it. This article is not representing the facts on the point well at all. We got screwed and their is nothing I can do but pay my tenants water bill while they live for free. Was in the process of evicting and now she gets four more months free.
    Randy Pulliam from Little Rock, Arkansas
    Replied 15 days ago
    This is correct. There is no judge to determine, the tenant just needs to fill out a form. I suspect that form is already being circulated among tenants. The article was WAY too optimistic vs the facts.
    Bob Beaumont from Long Beach, California
    Replied 15 days ago
    Hi Ken, Yes, I'm Long Beach also. I have a vacancy right now that includes all utilities, air conditioning cable TV and internet. I'm thinking maybe it's better to be vacant? ~
    Konstantin Samorodskiy Investor from Dayton OH/Cincinnati, OH
    Replied 15 days ago
    Bob, or AirBnb (short term rentals are not effected by the moratorium)
    Bob Beaumont from Long Beach, California
    Replied 14 days ago
    Thanks Konstantin. Yes I saw that "Guest House' is exempt. I don't know if that applies to me. However it is our home where we also live. An upstairs suite over our garage. Yet, I'm requesting a years lease. We do supply the tenant with all the AirBnB perks ie: furnishings , decor even dishes. Possibly if I amend the agreement to Not be a years lease? ~ I'm nervous about being taken advantage of. It's a beautiful unit at the beach. We need to help pay our very expensive property taxes.
    NJ Ram
    Replied 15 days ago
    This is going to have a huge impact on rental properties. Despite the "qualifying criteria", many tenants will seize on this as a "free rent" deal. Most of them will talk to their friends/neighbors who will say the landlord can't evict, so stop paying rent. They may owe rent plus interest, but try collecting once you win in court! Except tenants who have something to lose (assets, or savings, or even a credit score), rest of them will blow all the money they get and coolly state to the courts that they have no money to pay rent Unless the government also cancels the "mortgage component" for landlords, this will be a total loss for all landlords. It needs to be challenged in courts today!
    Jamie Powers Software Engineering from Vista, California
    Replied 15 days ago
    Does this in anyway affect the ability to simply do a non-renewal? This is leading to believe I should have everybody on month-to-month and simply non-renew if there are issues.
    Yulia J. from Westmont, Illinois (IL)
    Replied 15 days ago
    That might not help though. Our tenant is month-to-month but he he said he is not moving out and try to evict me.
    Konstantin Samorodskiy Investor from Dayton OH/Cincinnati, OH
    Replied 15 days ago
    @Yulia J. you can evict for overstay based on the language in the moratorium.
    Fernon Meeks Real Estate Broker from Denver, CO
    Replied 15 days ago
    Absolutely! I was thinking the same thing.
    Fernon Meeks Real Estate Broker from Denver, CO
    Replied 15 days ago
    Here is a link to the unpublished order https://s3.amazonaws.com/public-inspection.federalregister.gov/2020-19654.pdf Just check out the crimal penalties for landlords, including jail time on pages 29-30. MORE accessible rent assistance and extended unemployment benefits to those in need would make so much more sense to help tentants. Past due rent adding up just creates more stress for an already stressed out tenant and landlord. I am not certain how the CDC has any authority over leases or eviction filings. This is NOT a solution, it is totally a political move. The CDC is not publishing an order that everyone must wear a mask or limit gatherings to no more than 10 people to prevent the spread of Covid or face $100,000 fines like in this order even though THAT may actually prevent spread. Sheesh, what is next?
    Dennis Tierney Investor from Omaha, NE
    Replied 15 days ago
    There in effect will be no recourse for landlords as the tenant can lie about having a problem and lie about them making a "best effort " to pay. The rental business will be devastated by unscrupulous tenants. The only recourse will be to turn them over to collection once you are allowed to evict sometime in the distant future, assuming you're still in business. We all know the moratorium will be extended once December comes around. The first thing to do when you have no rent is to stop paying the property taxes. That's the only thing that will get the government's attention.
    Suzanne Villanueva
    Replied 15 days ago
    But the federal government issued the order, and property taxes go to local governments. Also, refusal to pay property taxes will cost you extra in late fees and penalties, and could get a lien placed on your property.
    John Mainwaring from Richland Center, WI
    Replied 15 days ago
    The only hope I see is that most of the political class invest heavily in real estate and will see relief written into the next money printing bill. It's hit our small town hard and I can't convince half of those that are delinquent to follow through on the state aid programs that have been implemented.
    Patti Ward
    Replied 15 days ago
    I was granted possession in February but had to wait for tenant to vacate when covid hit. He's been there since and has not paid. I have a judgement since February so this was pre covid. I'm sure at this point he'll just file bk and I'm out a year's income. I am ready to throw in the towel with my losses and just want to sell the property while the market is good. I am paying my mortgage which is not a Fannie or Freddie and I get no reprieve. How can I get him out?
    Tony Swinney
    Replied 15 days ago
    Where is the property? I might be interested?
    Patti Ward
    Replied 15 days ago
    Vinton Virginia
    John Murray from Portland, Oregon
    Replied 15 days ago
    Pump the brakes, if you get involved in RI you better know what you are doing. You can always pay someone to leave. We landlords have such great tax benefits safe harbors and we are smart about human behavior. If you wave cash in front of people (especially if they don't) they will give up the keys and write it off as another lesson in RI. The upcoming general election all kinds of political maneuvering that will entertain and upset the masses. Use your brain to succeed, emotional intelligence and pattern recognition will serve you well in the next couple of years.
    Heather Swope Rental Property Investor from Plainfield, IN
    Replied 12 days ago
    The tenants have no incentive to take the "cash for keys" deal if they can live for months (or longer) for free. Are you going to offer them 6-month's or more of rent to leave? I don't have the resources to do that.
    Jessica S. from Little Elm, Texas
    Replied 15 days ago
    It feels like this article was written to get everyone to "not panic" when in fact, this is a totally unprecedented move. In no crisis in our lifetimes has there ever been an eviction moratorium nationwide. And all the tenant has to do is sign a form. That's it. You think this is going to be verified somehow? The article paints a far too rosy picture of the load of complete crap that was just handed to landlords. So as soon as tenants catch wind of this, that means we get to provide FREE housing and FREE maintenance, while still somehow paying our mortgages, property taxes and insurance. Yes, I have a cash cushion for my rentals. But it's supposed to be when there's an actual need. Not when the government sticks their nose where it doesn't belong and makes a completely illegal move and literally steals from landlords. This is absolutely insane.
    Robert Johnson
    Replied 4 days ago
    Exactly.
    Rob Althouse Real Estate Agent from San Antonio, TX
    Replied 15 days ago
    Thank you Brandon for your spin on the subject. This perspective of what is going on is a lot easier to share with my perspective investor clients than the chicken little version of what is happening!
    Konstantin Samorodskiy Investor from Dayton OH/Cincinnati, OH
    Replied 15 days ago
    Is this perspective correct though?
    Scott Trench President of BiggerPockets from Denver, CO
    Replied 15 days ago
    I could be wrong, but I'm just so convinced that the US taxpayer is about to guarantee rents for landlords. At the expense of the middle class. Think about it, this language is literally in the constitution: “nor shall private property be taken for public use without just compensation.” I don't see any way to interpret that other than guaranteeing rent here. Not with the current supreme court.
    Jason Hinton
    Replied 14 days ago
    Our properties aren't being taken for public use. The US government is writing new rules that govern a contract between two private parties. It is essentially creating a new protected class - people effected by COVID (physically or financially).
    Mike Shemp Rental Property Investor from Stewartsville, NJ
    Replied 14 days ago
    Completely agree with that. I would go one step further and say not only is guaranteed rent for landlords coming, but some form of Universal Basic Income for everyone as well. I think the guaranteed rent is coming first, and then some kind of UBI to follow maybe a couple of years later. Mike
    Konstantin Samorodskiy Investor from Dayton OH/Cincinnati, OH
    Replied 15 days ago
    Good point, probably some landlords stimulus is coming. They will need to hire a lot of extra stuff to proceed with those rental assistance requests after they created these headlines with moratorium
    Todd Drewson
    Replied 15 days ago
    LMAO at the people thinking these tenants are somehow magically going to have the $10k in owed rent to pay up once the moratorium ends. these people are going to live rent free for a year, banks are going to keep collecting interest, and as usual the small business/tiny landlord will get SHAFTED with the bill
    Tyler Brain from Portland, Oregon
    Replied 15 days ago
    Assuming that the unemployment rate of tenants nationwide is exactly that of the population as a whole seems pretty optimistic. Non-home owners as a demographic are more vulnerable to Covid related job loss. Also, what percentage of tenants out there didn’t qualify For a stimulus check? Nah, this is pretty crazy overreach by an administration looking to buy voting points with the working/renting class imho.
    Sylvia B. New to Real Estate from Savannah, Ga
    Replied 15 days ago
    Great article. Explains clearly.
    Zoila Benezra
    Replied 15 days ago
    I have been empathetic to my tenantsxwho have not been able to pay rent for the past 4 months, I've lost $18,000! I'm worried, scared and very stressed because nobody is helping us. We have bills to pay how could the government control our businesses and not help us? I have insurance and property taxes due in October and November , where will I get the money to pay? We're also hurting.
    Amy Pfaffman
    Replied 15 days ago
    Thank you for this! I feel much better now. So far, I've been VERY lucky with all nine doors paying rent every month. Too soon to tell for this month, but I'm hopeful.
    Peter Guerra from Modesto, California
    Replied 15 days ago
    Well I believe if you have tenants on month to month and you decide to give them notice to move than you can as long as it is not for non payment...perhaps you just want to sell ...or have your relative move in ....
    Adam Cole from Rochester, MI
    Replied 14 days ago
    I had a friend of mine try to pull this in an effort to just stop paying rent to their landlord. Lease ended and he refused to leave because the landlord was "not allowed" to kick him out. I can't understand the mindset behind trying to take advantage of someone who works hard to provide a sustainable living environment for you, when you haven't personally been impacted by all this craziness. Thank you for breaking it down Brandon, it was easy to understand and very very helpful!
    Genaro Angulo from Delray Beach, Florida
    Replied 14 days ago
    What about if the tenancy agreement expires and they don't want to leave?
    Kat Rathell Rental Property Investor from Milwaukee, WI
    Replied 14 days ago
    Our rental application form includes a disclaimer that we have the right to contact all employers before, during and after tenancy. Can a landlord use this to contact current employer to provide continued employment and no hardship if a tenant lies?
    Kat Rathell Rental Property Investor from Milwaukee, WI
    Replied 14 days ago
    Prove continued employment
    Andrew Watson Rental Property Investor from Atlanta, GA
    Replied 14 days ago
    There is a ton of misinformation on this "CDC order". After getting a completely uninformed opinion from our attorneys I decided to read the order, in its entirety, from the CDC website. Here are a few facts, directly from the order: First and foremost, here are the two important points that have caused a lot of confusion: 1.) The tenant DOES NOT have to be impacted specifically by COVID19. The definition as stated in the CDC order says: "due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary [7] out-of-pocket medical expenses". There is no verbiage regarding COVID in the definition of who eligible. 2.) The tenant does have to sign a "declaration", under penalty of perjury, but they DO NOT have to "prove" anything. This declaration ONLY goes to the landlord (specifically, it says DO NOT send it back to the Fed), does not require a witness and does not have to be notarized. It's basically a form letter from a tenant to a landlord saying they can't pay rent. All a tenant really has to do is make less than $99k and send the declaration to their landlord. Second, this impacts ALL properties, not just those with Federally-backed mortgages or those receiving Federal rent assistance. This is not the CARES act - it affects ALL PROPERTIES. The CDC definition: "any property leased for residential purposes, including any house, building, mobile home or land in a mobile home park, or similar dwelling leased for residential purposes". The only exemption is temporary rentals (hotels, seasonal rentals, airbnbs, etc.) Brandon is correct in that the order, legally speaking, does not "cancel rent". I had to read it several times, but the order is clear: "These persons are still required to pay rent and follow all the other terms of their lease and rules of the place where they live. These persons may also still be evicted for reasons other than not paying rent or making a housing payment." However, the order specifically says, "Executed declarations should not be returned to the Federal Government", so the government won't be getting involved in collecting our back-rent. Most likely, the ONLY way we will see our money in 2021 is if we have conscientious tenants, genuinely impacted by COVID, who start making 5X their rent. Hey, it could happen. These being the facts, I agree 100% with Brandon and others who suggest working with your tenants/residents. Some are going to take advantage of the situation, live rent-free until January and then bail with no intention of repaying this "loan" that our fine administration provided them. But most are going to pay their bills and do the right thing. We stand ready to help those that are sincerely in need by temporarily reducing rent and waiving late fees.
    Joseph Konney Real Estate Agent from Forest Park, IL
    Replied 14 days ago
    This is by far the best commentary and most realistic view of this post/order... and to summarize THE ORDER DOES NOT PROVIDE FOR ANY MECHANISM FOR THE LANDLORD TO VERIFY THIS INFORMATION. The order says if they fill this template out (the letter to the landlord), they can't be evicted.
    Jason Hinton
    Replied 14 days ago
    Thanks for doing the research and posting a realistic take on this executive order.
    Jason Hinton
    Replied 14 days ago
    This doesn't only apply to the unemployed so telling us the official unemployment rate is only about 10% doesn't help. This applies to any renter impacted by COVID. The unemployment rate you listed is the U3 (which is 8.4% for August). That only includes people COMPLETELY unemployed for less than 12 months who are actively looking for work and haven't found any type of job. The BLS says the US labor force is 161 million. 31 million people collected unemployment in August. That is 19.2 % of the labor force. Even then we haven't tallied all the people effected by COVID. The US unemployment rate doesn't count self-employed people. It also does't count people that are still employed full time but took a pay cut (like my wife). I doesn't count people that had their hours cut but not below 30 hours / week (the definition of part time) It doesn't count people that didn't get a salary cut but had bonuses frozen (like me) It doesn't count people that are paying more than 7.5% of their income in medical bills. You also have to take into account the fact that many rentals have more than one person working. If anyone in the household suffered any loss of income they have been effected by COVID and don't have to pay rent until next year. Just sign the form letter and send it to the Property Manager.
    Kim Tucker Flipper/Rehabber from Kansas City, Missouri
    Replied 14 days ago
    Be sure to watch this video from National REIA as to the ramifications and what their leaders are working to do: https://youtu.be/XwUPgfMmteY
    Michelle Roberts from Porter, TX
    Replied 13 days ago
    The link gives this message: Video unavailable This video is private.
    Kim Tucker Flipper/Rehabber from Kansas City, Missouri
    Replied 14 days ago
    Be sure to take action and tell your legislators you Oppose this Eviction Moratorium: https://nationalreia.org/action-center/?vvsrc=%252fcampaigns%252f77003%252frespond
    Kim Tucker Flipper/Rehabber from Kansas City, Missouri
    Replied 14 days ago
    Ask Congress to support robust rental assistance for renters and housing providers through NARPM: https://www.votervoice.net/NARPM/Campaigns/77031/Respond
    Bridgette Pellicano
    Replied 14 days ago
    I am a landlord and I 5old my tenants to pay me what they can , I would rather see there small children eat then to worry so much about me...... All my tenants have small children and I wouldn't be able to live with myself if they went hungry... They give what they can and I appreciate that .... I totally understand that some so not want to pay there rent thinking they just can and that is wrong. ....I just feel bad for the kids as they have no control over there parents.... I saw a video on one of the news stations where they followed officers in Texas as they were evicting families and I was in tears as one family had two small children and left with the clothes on their back back , and another with a elderly lady , and her I did not understand why her rent wasn't paid cuz I'm sure with her being elderly and she was she was getting Social Security and some type of assistance.... We didn't ask for this virus we didn't ask for any of this... I feel the government should be taking care of the tenant and the landlord because winter time is coming and my biggest fear is there's going to be so many children out on the streets in the freezing cold...... If you cannot already tell children mean a lot to me they are just sweet and innocent and they don't deserve to go through this.... Especially if they have parents who don't want to be responsible.........I hope things will work out for all of us ..... I am trying to have faith.......
    Heather Swope Rental Property Investor from Plainfield, IN
    Replied 12 days ago
    That's great for you. In the meantime I am unemployed myself (have been since April 1), so I can't afford to pay for my tenants to live for free. I know that one of my tenants who doesn't pay does have work while I do not.
    John Murray from Portland, Oregon
    Replied 14 days ago
    Here is a history lesson during the subprime crash about 10 years ago people could default on their homes and live in their homes rent and tax free. In my state some stayed up to 8 years because of the lack of proper procedure by buying and selling securitized loans. The CEOs of Fannie and Freddie were fired, they committed fraud and were not prosecuted. Billions of dollars were made by the shorting and those were often shorting their own securitized loans. There is no criminal activity or Constitutional questions, just people hurting because of a virus.
    Miranda Paton
    Replied 13 days ago
    The only feature of this eviction moratorium that hasn't gotten enough airplay is the fact that back rents are due on January 1. That's a bad deal for tenants who would do well to keep that mounting debt in mind (or have a plan for getting the next landlord to rent to them with all of that money owed to the last one. 2. And if it's a bad deal for tenants to be given a pure "rent vacation" without partial payments of any sort, it will become the landlord's problem, too. People are famous for short-term thinking. Thus, all of us would do well to keep in touch with out tenants and figure out a way to keep collecting some rent and creating payment schedules/signed promissory notes for the rest. That said, if you have bad situation and want your tenant out, at just about all costs, remember that you have just 90 more days of suffering. By the way, can landlords file eviction paperwork before the end of 2020 and set a court date for, say, January 2, 2021? In my opinion, everyone should treat the problem of back rent as ongoing and needing to be paid sooner or later.