Tenants Who Are Taking Advantage of the Eviction Moratorium

Tenants Who Are Taking Advantage of the Eviction Moratorium

Investor · Tucson, AZ · Member since 2017 · 12 posts · 0 votes

Hello,
We have sent out a letter/email similar to what Brandon created and also added links to online applications to the expanded Arizona Unemployment program and Rental Assistance program.

Since there is a moratorium on evictions until July 23rd what I am now interested in is the process  in documenting, communicating, etc with the tenants who are taking advantage of this situation to not pay rent.

Out of 18 tenants there are 2 tenants who have not responded to the "Brandon" letter/email or requests for the rent. Dead silence.

In the Bigger Pockets Rental Property Management book there are 2 forms; 1) Pay or Vacate - In AZ 5 day if hand delivered/posted or 10 day if mailed and a Courtesy Late Rent Notice.  According to the attorney we use for evictions there is no point to suing for an eviction since the Constables won't serve. Then there is no sense in using the Pay or Vacate because it cannot be enforced. Perhaps it's better to use the Courtesy notice to document non-payment and add to it every month of non-payment? If it ends up that they don't pay for up to 4 months I want to be ready on July 24th to send their info to the attorney. Also should I provide information from the article below in highlighting what is expected from the tenant; e.g. their responsibility to contact us about their inability to pay, not all renters eligible for reprieve, etc?

I appreciate your ideas on this process

This is the relevant portion of the article about the eviction moratorium posted on Tucson.com By Capitol Media Services Mar 25, 2020 Howard Fischer


Arizona renters affected by COVID-19 will not be in danger of losing their homes, at least through July 23.

Gov. Doug Ducey, in an executive order Tuesday, barred police officers and constables from carrying out eviction orders under certain circumstances.

Not all renters will be eligible for the reprieve.

Under Ducey's order, relief will be available to anyone who is required to be quarantined based on a diagnosis of COVID-19 or has been ordered to self-quarantine by a licensed medical professional based on symptoms.

Evictions also can be avoided if someone else living in the home is diagnosed with the virus or if they have some condition "that makes them more at risk for COVID-19 than the average person.''

There also are financial triggers, with evictions precluded for anyone who suffers a "substantial loss of income'' linked to the virus, ranging from job loss, a cutback in wages, closure of their place of employment, or an obligation to be absent from work to care for a home-bound school-age child.

Arizona renters affected by COVID-19 will not be in danger of losing their homes, at least through July 23.

The relief is not automatic.

Tenants and residents must notify the property owner or landlord in writing and provide supporting documentation. They also must acknowledge that they remain bound by the terms of the lease.

There are exceptions. The order allows evictions if a judge determines they are necessary "in the interest of justice'' or if a tenant is being evicted for lying on a lease agreement about such things as employment, a criminal conviction, or having pets.

Ducey's order is effective for 120 days, meaning tenants who are still in arrears on July 23 — the 121st day — would be subject to eviction.

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  • Dick RosenPro Member
    Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
    6y

    What kind of financing do you have on your rental property? That will dictate what your next steps should

  • Michele FischerPro Member
    Rental Property Investor · Seattle, WA · Member since 2013 · 2k+ posts · 1k+ votes
    6y

    Wow, I am so envious of how landlord friendly that letter is!  Our only path to eviction here is if it impacts the safety of tenants or others.

    I think it is important to keep reminding tenants, at least monthy, that this is delayed payment not non-payment, and the amount due is adding up to a potential eviction after the virus is under control.  Tenants are stressed, and it is easier to avoid unpleasant conversations, but silence always makes everything worse.  But you are effectively in a holding pattern until things are lifted.  And you should probably play nice; I'm concerned about damage to units as things get more desperate then unpaid rent.

    I like the idea of attaching the letter to a courtesy reminder with the rent due amount, then do it again next month. 

  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    6y

    @Phil Savio I know this is an extremely difficult time for all involved, but it is important to remind these tenants that they still have an obligation under the terms of their lease and payment for same. The smart ones have told me that "you cant evict me"!!! I say, you know you are right RIGHT NOW, but sooner than later, you will be evicted. You will not be able to rent nor buy a property with this on your record. This moratorium does not release them from their obligation. Working out a payment plan is essential. in all of us working together, we will get through this, but ignoring your responsibility helps no one!!!

    We are being firm, fair and consistent across the board in our responses to ALL tenants. 

    You sound like you are doing everything right 

  • Investor · Tucson, AZ · Member since 2017 · 12 posts · 0 votes
    6y
    Hello @Dick Rosen 
    One of the properties has a conventional mortgage and the other is free and clear.








  • Investor · Tucson, AZ · Member since 2017 · 12 posts · 0 votes
    6y
    Thank you @ Michele Fischer! Excellent advice! I appreciate it
  • Investor · Tucson, AZ · Member since 2017 · 12 posts · 0 votes
    6y
    Thank you, @ Kim Meredith Hampton. I will definitely include your suggestion of reminding them of their obligation and even though not paying may help them in the short term. It will only end up hurting them in the end. We do want to be fair and usually are to a fault, but firm and consistent.
  • Dick RosenPro Member
    Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
    6y

    Then you should be able to still charge late fees, send a 5 day Pay or Quit and get an eviction with judgment. But that's where it may stop because of the Governor's moratorium on Writs. That being said you could go through the entire process only to have an evicted tenant not paying rent and p.o.'d at you for as much as another 120-150 days. 

    In my opinion I feel that I am better off being very persistent with collections calls and offering assistance in educating the tenants on unemployment and Government funds available to help them pay rent. For the ones who feel that they are entitled and don't have to pay rent I also educate them on the facts that they do still owe the rent and if they don't work with me they will be looking at an eviction with a very large judgment in the end. I'm being very persistent with payment plans and guiding them to financial support. 

  • Investor · Tucson, AZ · Member since 2017 · 12 posts · 0 votes
    6y
    Thank you @ Dick Rosen. I have definitely incorporated your stategy into our letters and will call asking for rent and their acknowlegment of their responsibilities. Then we'll see how it goes.
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