Are these Gov moratoriums on evictions making you rethink REI?

General Landlording & Rental Properties
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Are these Gov moratoriums on evictions making you rethink REI?

Joe M.
Erie, PA · Member since 2018 · 413 posts · 348 votes

This isnt supposed to be a political debate...but reguardless of where you stand the fact of the matter is the government moved in rather quickly and just like that said your lease and laws dont matter with very little reguard for potential bigger picture fallout.  In my state, the Gov and AG said no evictions until July 10-thats almost 5 months potentially without rent.  This is a really slippery slope and not sure how much clearer it can be.  

I think moving forward there obviously needs to be common sense applied, you know what they say about common sense-its not common.

What Im asking you, are these moratoriums on evictions giving pause to you and REI? If so, how are you adjusting? Thoughts? Actions being taken?

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Michael HaasBusiness Member
Real Estate Agent · Sammamish, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 725 posts · 3k+ votes
6y

@Scott Passman - "Not even a little. Where else would you plan to invest your money where the government can't manipulate it..." Well, there's always Bitcoin :D.

Seriously though - as much as I hate the hair-brained and pandering policies Seattle City Council and other similar governing bodies, I think we as landlords tend to blow the eviction thing out of proportion. On a well managed rental with well screened tenants this should only rarely be an issue, and most tenants want to pay their rent and do not want to be evicted (even if the consequences of an eviction are becoming smaller).

So continue to invest in REI - I know I am. Take precautions - diversify your holdings geographically and by type (STR, LTR, ect) to mitigate your political risk. Just keep swimming.

[email protected]408-439-7873
HouseHack Seattle | Michael Haas & Team572 Reviews
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  • Patrick M.
    Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    @Michael Haas the concern I have is not so much with the moratorium today, but instead it is this constant undermining of acceptable tenant behavior.

    When this is all over I hope we can laugh and say we "blew" it out of proportion. Problem is- we haven't even gotten started yet. So if we are dealing with these issues when the government is throwing cash at every sad face, imagine what is going to happen when it stops.

    Winter is coming, Buckle your chinstraps!

    1Reply
  • Michael HaasBusiness Member
    Real Estate Agent · Sammamish, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 725 posts · 3k+ votes
    6y

    @Patrick M. you’re right, there’s still lots up in the air. Hope for the best, prepare for the worst!

    PS- I was born in Red Bank, NJ 👍🏼 

    [email protected]408-439-7873
    HouseHack Seattle | Michael Haas & Team572 Reviews
    WebsiteView Page
    4Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    6y
    Originally posted by @Joe M.:
    Originally posted by @Jim K.:
    Originally posted by @Joe M.:

    This is really facinating.  I imagined more outrage.  

    I never saw a wild thing sorry for itself.

    Who is feeling sorry? 

    I'm not attacking you, Joe. You have a right to your feelings. But moral outrage and huffing and puffing about rights and obligations...you can make money or you can make hot air in this business.

    And most of us think of ourselves as capable, self-reliant types. We don't need or want the nanny state to take care of us, we would prefer to master ourselves rather than serve masters. We would prefer to be free rather than tamed to someone's hand.

    There's a poem by DH Lawrence called "Self-Pity," most recently featured in the popular media in the film GI Jane:

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  • John Barrett
    Rental Property Investor · Everett, WA · Member since 2015 · 458 posts · 386 votes
    6y

    @Joe M. The government policies regarding evictions have not caused me to change my thinking with regards to investing in real estate.  While these policies are good political theater, most reasonable people acknowledge they are not beneficial to tenants or landlords in the long term.

    While these regulations present additional risk that need to be accounted for when conducting your due diligence, to me the fundamentals of investing real estate continue to look good long term.  I will adjust my screening and reserves to account for these risks. My belief is that real estate will provide superior returns to other asset classes so I choose to allocate my funds there.

    Best of luck,

    John

    1Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    6y
    Originally posted by @Bjorn Ahlblad:

    I am not rethinking REI at all. Land lording is the oldest profession; It is even older than that other one. I am shocked to see how eager some people are for a Nanny State and how prepared the many layers of government are to provide one. Some states and cities more so than others. This is just a prelude however; there is a lot more to come. REI is still good; it just takes more cash than many folks thought.

     Pretty sure prostitution is still older.

    0Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    @Calvin Thomas Haha! that's the 'other one' profession I was referring to. And they needed a place to do it so the prostitute may have been the 'original tenant'? 

    0Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    6y
    Originally posted by @Bjorn Ahlblad:

    @Calvin Thomas Haha! that's the 'other one' profession I was referring to. And they needed a place to do it so the prostitute may have been the 'original tenant'? 

     Thinking more of a cave.  But hey, no rent, insurance or utilities were needed, so there you go.

    0Reply
  • Joe M.
    OP
    Erie, PA · Member since 2018 · 413 posts · 348 votes
    6y
    Originally posted by @John Barrett:

    @Joe M. The government policies regarding evictions have not caused me to change my thinking with regards to investing in real estate.  While these policies are good political theater, most reasonable people acknowledge they are not beneficial to tenants or landlords in the long term.

    While these regulations present additional risk that need to be accounted for when conducting your due diligence, to me the fundamentals of investing real estate continue to look good long term.  I will adjust my screening and reserves to account for these risks. My belief is that real estate will provide superior returns to other asset classes so I choose to allocate my funds there.

    Best of luck,

    John

    Appreciate the answer John.  I probably worded my question wrong, but this was the type of reply I was hoping for.  Thanks

    0Reply
  • Joe M.
    OP
    Erie, PA · Member since 2018 · 413 posts · 348 votes
    6y
    Originally posted by @John Barrett:

    @Joe M. The government policies regarding evictions have not caused me to change my thinking with regards to investing in real estate.  While these policies are good political theater, most reasonable people acknowledge they are not beneficial to tenants or landlords in the long term.

    While these regulations present additional risk that need to be accounted for when conducting your due diligence, to me the fundamentals of investing real estate continue to look good long term.  I will adjust my screening and reserves to account for these risks. My belief is that real estate will provide superior returns to other asset classes so I choose to allocate my funds there.

    Best of luck,

    John

    Appreciate the answer John.  I probably worded my question wrong, but this was the type of reply I was hoping for.  Thanks

    0Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    6y

    I am not rethinking real estate , but rethinking getting into politics .

    0Reply
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