{"id":129130,"date":"2020-09-02T15:32:10","date_gmt":"2020-09-02T21:32:10","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=129130"},"modified":"2024-01-05T11:26:18","modified_gmt":"2024-01-05T18:26:18","slug":"eviction-moratorium-extended-through-end-of-2020","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/eviction-moratorium-extended-through-end-of-2020","title":{"rendered":"White House Bans Evictions for the Rest of 2020"},"content":{"rendered":"<p>Did Trump just \u201ccancel rent\u201d for tenants in America? Let\u2019s talk about it.<\/p>\n<p>I\u2019m 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\u2019s not actually the case.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/bt1yrwurado\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>Here\u2019s 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.<\/p>\n<p>Sounds scary, right?<\/p>\n<p>But don\u2019t panic just yet! I\u2019ll break down what this means for you as a landlord or investor. Here are five things you need to know.<\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/coronavirus-letter-to-tenants-from-landlord\" target=\"_blank\">Dear Tenants\u2014I\u2019m Sending This Letter to My Tenants Today<\/a><\/em><\/p>\n<h2>5 Things to Know About Temporary Halt on Evictions<\/h2>\n<h3>No. 1: Only applies to tenants impacted by COVID-19<\/h3>\n<p>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 \u201ccanceled.\u201d<\/p>\n<p>According to the<em> Wall Street Journal<\/em>, <a href=\"https:\/\/www.wsj.com\/articles\/july-jobs-report-unemployment-claims-2020-11596771828#:~:text=Unemployment%20Rate%20Fell%20to%2010.2,to%20Search%20Skip%20to...&amp;text=WSJ%20wants%20to%20hear%20from,to%20help%20shape%20The%20Journal.\" target=\"_blank\" rel=\"noopener noreferrer\">unemployment is hovering around 10%<\/a> right now, so 90% of your tenants will likely still have a job and be able to pay their rent.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-126521\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/06\/world-temporarily-closed.jpg\" alt=\"\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/06\/world-temporarily-closed.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/06\/world-temporarily-closed-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h3>No. 2: Tenant must provide proof<\/h3>\n<p>Closely related to the first point, each tenant on the lease will have to fill out a declaration form that proves they\u2019ve 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.<\/p>\n<p>In fact, the tenant will have to show that eviction would lead to them becoming homeless or having to move in with someone else.<\/p>\n<p><em><strong>Related: <\/strong><a href=\"https:\/\/www.biggerpockets.com\/blog\/will-market-crash-covid\" target=\"_blank\" rel=\"noopener noreferrer\">Will the Real Estate Market Crash Due to COVID-19?<\/a><\/em><\/p>\n<h3>No. 3: Some evictions are allowed to proceed<\/h3>\n<p>The draft of this order says that evictions for reasons other than not paying rent will be allowed to move forward. So if you\u2019re a tenant and you decide that because of this you can move in 90 cats and trash your house and the landlord can\u2019t do anything\u2014well\u2026 just don\u2019t do that. You\u2019ll likely still be evicted.<\/p>\n<h3>No. 4: Moratorium only applies to certain tenants<\/h3>\n<p>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.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-125254\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/05\/covid-19-guy-wearing-mask-in-field.jpg\" alt=\"\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/05\/covid-19-guy-wearing-mask-in-field.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2020\/05\/covid-19-guy-wearing-mask-in-field-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h3>No. 5: Tenants are responsible for paying back missed rent<\/h3>\n<p>Even if a tenant proves to a judge that they truly couldn\u2019t 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.<\/p>\n<p>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.<\/p>\n<p>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\u2014that\u2019s government for you. Why solve a problem today when you can kick it down the road until after the election?<\/p>\n<h2>Advice for Rental Property Owners<\/h2>\n<p>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 <a href=\"https:\/\/www.biggerpockets.com\/blog\/tenants-unable-pay-rent-landlord-advice\" target=\"_blank\" rel=\"noopener noreferrer\">the one I proposed in this video<\/a> way back in March when this fear of tenants not paying rent first hit the world).<\/p>\n<p>I\u2019m going to treat tenants like real humans and talk with them about their options. And worst case, I\u2019ll create a payment plan next year for those who truly need it.<\/p>\n<p>And look, tenants\u2014if you have the means to pay your rent, then pay your rent. This eviction halt does not mean rent is canceled. Don\u2019t be a jerk. Your landlord needs rent to be able to pay their mortgage or else they\u2019ll lose the property to foreclosure and you\u2019ll be kicked out by the bank. That doesn\u2019t help anyone.<\/p>\n<p>Landlords, remember, your tenants are going through a hard and scary time, too. So, let\u2019s treat everyone with dignity and respect and work together to emerge from this quagmire a more resilient society.<\/p>\n<p>I\u2019ll certainly be keeping you updated as this story continues to develop throughout the year.<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/webinars?utm_source=blog\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-91217\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-01.jpg\" alt=\"\" width=\"700\" height=\"85\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-01.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-01-300x36.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em>Questions? Comments?<\/em><\/p>\n<p><strong>Join the discussion in the comment section below.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Trump administration has announced the CDC will halt COVID-19-related evictions through the end of 2020. The order is set to start Sept. 4.<\/p>\n","protected":false},"author":710,"featured_media":129146,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7384],"tags":[],"class_list":["post-129130","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics-policy"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/129130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/710"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=129130"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/129130\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/129146"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=129130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=129130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=129130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}