Rent Freeze during Covid Pandemic

11 Replies

Has there been any discussion here yet about governments potentially ceasing ability to collect rent for a certain time frame during this Covid pandemic. While there is a great economic strain on people living paycheck to paycheck I also assume some landlords live off there cash flow. Any ides on how to combat this?

Haven't heard anything yet about state or local government ceasing the ability to collect rent but I did see that the City of Los Angeles has established a moratorium on evictions due to COVID-19. 

Great info, thanks. This was started by me seeing a large online petition in New York for the governor to freeze rent in addition to evictions. I don’t think I have heard any talk of a nation freeze on rent. Obviously we want to be as helpful to people as we can during this pandemic just some thoughts. 

A moratorium on evictions is the same thing as a rent freeze. If a tenant can't be evicted, then paying rent becomes optional. My guess is there will be no moratorium on foreclosures, so this would be a disaster in so many ways. 

The government sees this as an opportunity to make unilateral decisions and seize control without respect for private ownership. The mayor of Oakland wanted to take over a cruise ship to house homeless; Gov Newsom says he will take over hotels to house the homeless-probably including room service and valet parking. Some of the calls to action are more warranted than others, and this will get more and more radical if the virus resists control. If elections are being called off anything is fair game this will go on for months. It won't last forever just make sure you have reserves or access to capital. Get your hands on some serious money now before you need it.

@Craig Moffett I have not heard of any rent collection issues, other than the LA eviction moratorium.  As has been mentioned though, this is the case for owning A and B properties versus C and D.  In prosperous times, everyone pays their rent, but in any shift, it tends to be lower income tenants that are disproportionately hard hit, which will effect the landlords of those asset classes more.

My thought is a temporary decrease in rent if a tenant reports loss of income or even working out a payment plan. Luckily in OK purchase price and rent rate are typically so low that it might be a bit more manageable than what owners in other markets are seeing. 

Any updates on this?

Ther's a national apartment association advocacy group

You can also sign petitions and join apartment associations it seems