Anyone Know - tenants who haven't lost income still protectected?

Question

We know Trump has staved evictions for some non-paying renters for now (hud/fha properties - protecting those losing income or experiencing financial hardship due to the pandemic). But, does this apply to those who have full pay? How do they determine "financial hardship?" Individual states have also strengthened the protections. I am in AZ and trying to find out my rights when renters who have not lost income nor meet any other criteria fail to pay. Any chance protections apply to commercial tenants, too (I have both residential and commercial)? Now that more clarification and rulings have come out since some posts have discussed some of this, how will everyone be handling non-paying renters (again, particularly if they can't prove a loss of income, quarantine, increased risk of covid, etc)?

Jerry W. · Answer

@Nathan G., our courts are not prohibiting evictions of privately owned property at the moment, but it is complicated.  They are only doing essential court which is similar to folks in jail needing to see a judge, but you can still file eviction papers, have them served, and ask for a court date.  You may got a date, or not.  Most likely you will have it set for a teleconference and have it set 30 days down the road instead of the 1 week we have grown used to.

John Teachout · Answer

I think there will be a lot of tenants that confuse "not being evicted" with "not having to pay rent".

If you have a tenant playing games, then make sure all the notices required in your jurisdiction are posted correctly so things can proceed when able/allowed.

We've had two tenants pay rent today. That's a relief. We thought maybe no one would pay, lol. About a dozen to go. Fingers crossed.

Nathan Gesner · Answer

I've given my renters some basic instructions in a kind, empathetic, but firm letter:

1. Rent is still due. We all have financial obligations to meet and renters should do their best to meet them.

2. If they have a legitimate reason for not meeting their obligations, I ask them to stay in communication with me. I didn't say this in my letter but I will waive late fees or even set up a payment plan for tenants that communicate. For tenants that try to hide from me, I'll be tougher.

3. I pointed out that unemployment claims are processing in about two days in Wyoming and unemployment benefits were increased. A lot of renters are still getting tax refunds soon and we have stimulus checks coming. Everyone should have the funds available to pay rent the next couple of months, even if it's delayed.

I have one renter (out of 360-ish) that will try to take advantage of this situation. I'm watching him closely. If he fails to pay and tries to stay, I will continue racking up his charges and evict him the minute the courts open back up. Then I'll go after him for every dime owed. I may never see it, but it will still sit on his credit and cost him other things in the future.

Jeffrey Daniels · Answer

@Andrea Finkelstein, you may want to confirm a tenant need have actually lost income, or even needs to prove they have been impacted in order to be protected.

Wes Blackwell · Answer

@Andrea Finkelstein

I'm assuming your rentals are in the Phoenix metro area. First thing I would do is contact your lender and get answers from them on how they prepare to deal with property owners with tenants who are defaulting in mass scale because of the Coronavirus.

As you may know, the AZ Governor signed an executive order delaying evictions for tenants affected by the Coronavirus. See it here:https://azgovernor.gov/sites/default/files/eo_2020-14_0.pdfI would contact your lender and tell them your hands are being bound by the state, and then also call your local officials and ask for protection for landlords as well.

Ultimately, the hope is that lenders would offer landlords a loan forbearance, and that landlords will offer the same forbearance to their tenants

Cynthia Brooks · Answer

EVICTION as soon as the courts open!

Andrea Finkelstein · Answer

Thanks for everyone's suggestions and advice! I'm happy to say that all of my residential tenants have paid April's rent on time!!! I did send out a letter (modified from the ones that have been suggested on BP) yesterday. In it, I strengthened the explanation that our State proclamation only applies under certain specific circumstances, and doesn't permanently waive rent or fees like late charges; asked them to email me with documentation if they felt they had a need and the proclamation applied to them; and I attached a copy of the proclamation to the letter. I was very compassionate, yet firm. Thankfully, it worked and I can breathe again until next month. See you all here same time, same bat channel (I'm dating myself). Thanks again!

Anyone Know - tenants who haven't lost income still protectected?

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