Connecticut landlords essentially just got .... by the governor.

Connecticut landlords essentially just got .... by the governor.

Investor · San Diego, CA · Member since 2015 · 435 posts · 421 votes

https://portal.ct.gov/Office-of-the-Governor/News/Press-Releases/2020/04-2020/Governor-Lamont-Signs-Executive-Order-Providing-Residential-Rent-Protections?fbclid=IwAR1_ej9w4ehy8nk1tbQqymMiVDJRd38X44AfzFGeHUXqavYaeZW7aitYJ3M

Protections granted to residential renters during COVID-19 crisis

Governor Lamont’s order – Executive Order No. 7X – includes a provision taking the following actions to protect residential renters during the public health crisis:

  • All landlords are prohibited from issuing a notice to quit or beginning eviction proceedings before July 1, 2020, except for serious nuisance, such as physically harming another tenant or the landlord.
  • For rent due in April 2020, landlords must grant tenants an automatic, 60-day grace period for payment, instead of the existing 9-day grace period.
  • For rent due in May 2020, landlords must grant a 60-day grace period for payment upon the request of tenants. Under this provision, a tenant must to notify the landlord that they have lost a job, lost hours, or otherwise lost revenue or faced significant increased expenses as a result of the COVID-19 pandemic.
  • If a tenant has a paid security deposit of more than one month’s rent, the tenant can apply all or part of that excess to April, May, or June rent. Under this provision, the tenant must notify the landlord that they have lost a job, lost hours, or otherwise lost revenue or faced significant increased expenses as a result of the COVID-19 pandemic.

“During this crisis, these protections will allow residents to stay safe at home, while prohibiting landlords from charging late fees or interest for nonpayment and provide a buffer for the next couple of months,” Governor Lamont said. “Residential renters need to have added safeguards during times of emergency like this – they have rights and we will see to it that they are protected.”

So, it takes on average AT LEAST TWO MONTHS to run a straightforward eviction for non-payment of rent in CT, and a savvy tenant, or one who is getting coached by Legal Aid, can often draw it out for several months more.  The governor just declared today that no one has to pay rent until July 1st, so he just gave people 3 months of not having to pay rent.  That, plus the two months it takes to evict someone, means that tenants now can get at least 5 months' free rent.  He also has allowed tenants to apply the second month of their security deposit to their rent, meaning that the LL now is left holding only one month of security deposit, in a state where it takes at least two months to run a straightforward eviction for non-payment.  So, assuming that a tenant decides to take advantage of this, and not pay rent beginning April 1st (and a lot of tenants take the grace period, and don't pay until the tenth of the month - the day he announced this), by the time they get into court they'll be 5 months behind in rent, and most judges will give them another few weeks to get ready to move, without making them pay a cent.  For marginal tenants, they may be better off not paying rent, saving their money, finding a new place for September 1st, and just moving, leaving the LL out 6 months of rent, since they won't be able to rent the unit until October 1st at the earliest, plus eviction costs.

The LL still has to maintain the properties, pay mortgages, pay property taxes, pay insurance, not to mention pay his OWN bills, too - this is his livelihood.  It's as if the governor just announced that food from groceries, restaurants, and delivery services is now free for the next five months.  I notice that he hasn't announced a program for the state to pay the landlords for the lost rent.  And none of the federal bailout programs cover mom and pop small landlords, since they have no employees.

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Flipper · Bridgeport, CT · Member since 2017 · 21 posts · 9 votes
6y

@Karen F. Do you think there will be a break for landlords on taxes, water, pollution and other utilities paid by the landlord? I don’t understand how CT can ask the landlords to basically take care of the tenants when the bills don’t stop on our end. When courts open back up they will be so backed up it will take months and months to evict.

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  • Investor · North Stonington, CT · Member since 2014 · 393 posts · 228 votes
    6y

    @Karen F.

    Wow, I am hoping most of my tenants understand this new bill correctly. Some may think they don't owe rent until July 1st, but in reality they will still owe for May and June and on July 1st three months rent will be due. Given certain tenant classes, I could see how this bill could really screw them. 

    We need to make sure our good tenants who might think this is a freebie understand the law.

    For our bad tenants, this is going to be awful for landlords. Some people I had in the past, would have stopped paying in April and then they would have taken advantage of this bill and not paid for May, June, and definitely not July. Then the eviction process is going to take even longer than the average 3 months it did before all this. We are looking at lost rents for 6 or more months.

    Hopefully, everyone will have enough good tenants to balance out the bad ones. 

  • Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    “During this crisis, these protections will allow residents to stay safe at home, while prohibiting landlords from charging late fees or interest for nonpayment and provide a buffer for the next couple of months,”

    Then why not just say no late fees and interest? He has just put landlords completely at the mercy of their tenants.

  • Flipper · Bridgeport, CT · Member since 2017 · 21 posts · 9 votes
    6y

    @Karen F. Do you think there will be a break for landlords on taxes, water, pollution and other utilities paid by the landlord? I don’t understand how CT can ask the landlords to basically take care of the tenants when the bills don’t stop on our end. When courts open back up they will be so backed up it will take months and months to evict.

  • Investor · San Diego, CA · Member since 2015 · 435 posts · 421 votes
    6y

    We have pretty good tenants, and virtually everyone paid up by today (before the 9 day grace period was over, and before the governor's "free rent for everyone" proclamation was made public).  But now, I don't know how much of our May and June rents we will see.

    Meanwhile, we have two vacant units.  We've decided that we will only rent them to Section 8 or other subsidized applicants, for the obvious reason that we believe that is the only way we can be sure of getting paid.  I cannot imagine ANY landlord in CT being foolish enough to rent a vacant unit right now to anyone other than Section 8 or other subsidized tenants.  Even if a LL takes the legally allowed max, meaning two months' deposit plus first month's rent, he could see the tenant not pay a penny thereafter, claim the second month of the deposit should be applied to June rent, and the three to six month eviction process would begin only on July 11th, couldn't get into court probably until at least September, because there will be a HUGE wave of evictions for non-payment of rent beginning the minute the courts open July 1st (if even by then).  He'd be lucky to have the person out by November, be lucky to have the unit re-rented by January 1st (and remember, middle of winter is hardest time to rent a unit).  He'd lose minimum six months of rent, plus eviction costs.  No way is it worth the risk.  Better to let the unit sit open until July 1st, when the "free rent for everyone" giveaway hopefully expires.

    How in the world are people who are not on Section 8 going to be able to get into a rental unit before summer?  It's bad enough that the courts are closed, but now, with the "free rent for everyone" proclamation, the rental market will be absolutely FROZEN.  Doesn't the governor see that he just left out in the cold anyone who isn't in housing, anyone who needs to escape an abusive household, anyone who needs to move here for a job, or who needs to move, for any reason?

  • Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    6y

    It's really not that bad. I have to give tenants 12 months to pay back their missed rent. A long as our local government thinks the crisis goes on for, tenants don't have to pay rent. When it finally gets back to normal, they can wait 12 months to pay the landlord back all the missed rent. 

    Regarding the security deposit, I question the legality of the state being able to alter a contract between two people. I can see this ending up in court and costing the state a lot of money.

  • Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    6y

    Why instead does the governor not make state interest free loans to these folks through their housing department to cover all the rent until July 1?  Why do the landlords have to give them these loans, which is really what he has done?  Easy answer, the governor knows that most of these folks will never pay this rent.

    Why not increase the funding for their HUD/Section 8 type housing co-pays for this period? Set up an emergency housing grant program? 'C the governor does not want to pay for their housing!

    Why not increase the unemployment to cover all their housing costs?

    Lota of solutions for this issue, but the landlords get to hold the empty bag this time.

  • Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
    6y

    @Greg M., of course the state can alter a contract between two people! Contracts have no sovereignty. It may get challenged in court, but elected officials have wide powers during times like these.

  • Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    6y
    Originally posted by @Jaysen Medhurst:

    @Greg M., of course the state can alter a contract between two people! Contracts have no sovereignty. It may get challenged in court, but elected officials have wide powers during times like these.

    Absolutely not that simple. There are laws against outside parties interfering with contracts. The Federal government is immune to this. Cities and states is another matter. 

  • Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
    6y

    Uh-huh, and who makes those laws, @Greg M.? Not to get into a whole federalism rabbit hole, but states have sovereignty. And while Federal law supersedes state law, states absolutely have the right to "interfere with contracts." That's why in some states you can have 2 months security deposit and other states only allow one. You can write your lease with a 6-month security deposit, but it's unenforceable. 

    Municipalities are a different matter as they have no sovereignty. Their powers are granted by the state in each individual charter. A city's rights and powers can be changed, reduced, or completely eliminated by the state. This isn't necessarily easy, as it basically means passing a law, but if NY State wanted to revoke NYC's charter, it's in the state's right to do so.

  • Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
    6y

    After this all ends lawyers are going to be busy, busy folks. There will be so many evictions I predict landlords will hire lawyers who don't specialize in evictions to handle eviction cases. 

  • bethel, CT · Member since 2015 · 335 posts · 57 votes
    6y

    Any updated on the ct eviction process I heard now it's the 25th of August? Will this awesome governor keep pushing back the date? 

  • Rick BassettBusiness Member
    Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
    6y
    I thought that this was going to be a real problem when it came out but it hasn't been. All tenants paid as they had before the Guv's EO. The good ones remained on time and the slower ones required the same amount of chasing.
    Bassett Property Management5108 Reviews
  • Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    6y

    At least down in C'class, this is where all the work you've put into vetting, placing, and building your relationships with your tenants matter. It's also where contempt, disdain, and unresponsive behavior toward your tenants get punished.

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