Knoxville, TN · Member since 2013 · 62 posts · 216 votes
Forgive me if this has been posted before. A search didn't find anything. As you probably know, the Democrats in the House passed the Hereos Act, A part of this bill calls for a Federal Ban on evictions of any residential property for non payment of rent. This is extended for 12 month after the pandemic is over. No recourse for landlords. I rely on my properties (which are paid for) for my living expenses. Also in there is a provision stating the back rent will be forgivable. If the Senate passes this bill, I may be without income for a loooong time. Does anyone know any more about this?
Forgive me if this has been posted before. A search didn't find anything. As you probably know, the Democrats in the House passed the Hereos Act, A part of this bill calls for a Federal Ban on evictions of any residential property for non payment of rent. This is extended for 12 month after the pandemic is over. No recourse for landlords. I rely on my properties (which are paid for) for my living expenses. Also in there is a provision stating the back rent will be forgivable. If the Senate passes this bill, I may be without income for a loooong time. Does anyone know any more about this?
You ever notice how so many bad laws, acts, groups and movements are titled in such a way that it is considered shameful to oppose them?
LakeWood , CA · Member since 2018 · 268 posts · 331 votes
6y
There was a topic about this I believe 2-3months ago. Alot of members have agreed that it won’t pass in the senate. But I agree if it does pass a lot of landlords will be screwed
Knoxville, TN · Member since 2013 · 62 posts · 216 votes
6y
I hope they don’t. It looks like the senate will take it under consideration in July. It does look like a vote will happen but on a scaled down version. What worries me is the things they mentioned wanting to “scale down” did not include taking out the eviction ban. I have a property ready to rent out but I will hold off until I see where this goes. If it passes, I think it is time to sell out.
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
6y
In many European countries evictions can take years and they continue to have landlords there. Very few tenants are freeloaders. We will learn to adjust our screening criteria and pricing. I'd be more worried about being a LL in some inner big city markets.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
6y
It mostly means any tenant that is ever evicted will never be able to rent again. Who would take that chance on a proven non-payer. That will sure helps tenants out.
Knoxville, TN · Member since 2013 · 62 posts · 216 votes
6y
Actually, the language states that landlords can not use past evictions against applicants again. It also takes away credit score checks, criminal checks, and mandates you rent to any section 8 applicant. It looks like government control of private property.
LakeWood , CA · Member since 2018 · 268 posts · 331 votes
6y
The heroes act does say you can’t evict for non Payment of rent. But there’s other reasons why you can. So that’s a small loop hole you can use. For example Damaging property, peace of quiet, unauthorized guest living at the apartment. List goes on...
Forgive me if this has been posted before. A search didn't find anything. As you probably know, the Democrats in the House passed the Hereos Act, A part of this bill calls for a Federal Ban on evictions of any residential property for non payment of rent. This is extended for 12 month after the pandemic is over. No recourse for landlords. I rely on my properties (which are paid for) for my living expenses. Also in there is a provision stating the back rent will be forgivable. If the Senate passes this bill, I may be without income for a loooong time. Does anyone know any more about this?
You ever notice how so many bad laws, acts, groups and movements are titled in such a way that it is considered shameful to oppose them?
Investor · Newark, NY · Member since 2016 · 19 posts · 41 votes
6y
@JR C.
I live in NY so we already can't use credit checks or background checks against tenants from my understanding. Also our governor suspended evictions. All my tenants have paid. I believe if you screen tenants well you will have good hearted people renting from you who want to do the right thing. Now if someone loses their job and can't pay that sucks for both you and the tenant, but again of you have a good tenant they will do the right thing. I Hope your tenants keep paying you!
Rental Property Investor · Henrico, VA · Member since 2019 · 265 posts · 155 votes
6y
I wasn't aware of this bill. The first action as I recall at the federal level had a more limited scope applicable to HUD. The states and then local govt were the ones to put in orders that extended the reach. This one though at the federal level seems to have expanded a LOT? I'll admit I did not read the 1800 page house bill, but here is an excerpt from the National Apartment Association.
Dramatically extend the CARES Act’s eviction moratorium to apply to virtually all single family and multifamily rental housing and suspend the collection of fees and halt eviction cases due to nonpayment of rent for 12 months from the date of enactment. Additionally, this section would restrict rental housing providers from issuing “notices to vacate” due to nonpayment until after the moratorium ends and prevent providers from requiring a resident to vacate the premises until 30 days after the notice is served.
Enable the Board of Governors of the Federal Reserve to establish a credit facility that makes loans available to residential rental property owners to temporarily compensate owners for rent shortfalls in exchange for mandated renter protections, including suspension of evictions, source of income restrictions and unnecessary reporting requirements.
The first paragraph makes certain provisions sound mandatory. The second only if loans are accepted by the owner. Seems contradictory.
Knoxville, TN · Member since 2013 · 62 posts · 216 votes
6y
Property owners have to take out loans to cover living expenses, then pay it back with interest while the tenant stays free in your property without ever paying back rent. Also, if a property owner wants to sell a property and a tenant is still occupying it after the lease expires, too bad.
I’m sure when tenants across the country realize they can get away with not paying rent and being able to stay free and with no repercussions, there will be millions of property owners out of luck. This will hurt the rental market long term.... less landlords willing to get into the business. Rentals will be scarce and expensive. Again, government getting involved and messing things up.
Real Estate Agent · Commerce CIty, CO · Member since 2018 · 127 posts · 78 votes
6y
Yeah this will affect me as well so its something I need to track. Or maybe it will push investors to get rid of properties which could also help my situation. Whatever happens, there will be a way to capitalize for sure.
Rental Property Investor · Henrico, VA · Member since 2019 · 265 posts · 155 votes
6y
Thats ridiculous, WTF? I'll tell you, I've travelled the world, and one of the differences the US has in comparison to less developed nations is more robust property owner rights, for land in general. They are/should be strong in the Us. In less developed countries, if someone squats for a certain amount of time (say 2 years and the property owner is out of the area), the land becomes theirs. And, that is what discourages investors, including lenders.
I understand this is a house bill without much collaboration so who knows where it will go from here, but the fact it passed the house says something.
I understand we are in a pandemic and have a lot of compassion for those that are affected, but there are also better and more targeted ways to approach this than using such a broad blind brush, while also maintaining property rights.
Sounds like Leases need to be tight to address the other non conformance issues unrelated to nonpayment of rent.
Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
6y
Not so fast. What we are seeing here in NY under our own protracted eviction moratorium is that once tenants get wind of this legislation, they will stop paying rent. Ironically, doing so PROTECTS them from being evicted for other reasons because they have an affirmative defense that they are being unlawfully evicted for non-payment, since the eviction proceeding was not implemented until AFTER the tenant stopped paying.
I wonder aloud if this is the beginning of the end for the private housing industry, where it just gets folded into all of the other "human rights" people are apparently entitled to.
He did. So did the Senate. He also later said it was DOA as written. He wants a payroll tax cut added. He said he would work with the democrats on the bill. Now the senate has also said that “as written”, it is a democratic wishlist. The mentioned several things that were not going to happen. Never once has anyone said anything about the “housing” portion. That is worrisome.
Investor · Nashville, TN · Member since 2016 · 42 posts · 68 votes
6y
I guess you didn't read the part about $100 billion for Emergency Rental Assistance to help low-income renters at risk of homelessness avoid eviction due to the economic impact of the coronavirus pandemic. That is on top of the Tenant-Based Rental Assistance of $ 4 billion to to allow public housing agencies (PHAs) to respond to coronavirus and the ability to keep over 2.2 million families stably housed even when facing a loss of income, including $1 billion for new, temporary, vouchers for individuals and families who are homeless or at risk of becoming homeless, or fleeing domestic violence. Allows public housing agencies the flexibility necessary for the safe and effective administration of these funds while maintaining fair housing, nondiscrimination, labor standards and environmental protections.
That is a lot of assistance that will go directly into landlords pockets.
Rental Property Investor · Henrico, VA · Member since 2019 · 265 posts · 155 votes
6y
@Boots Bonner , I guess I wonder where that assistance goes, or is it required to go a certain place or is it open ended? I agree that is a lot of assistance. I suppose the support and decision regarding what to do with the payment assistance is left with the tenant or who decides how that assistance is spent?
Rental Property Investor · Newport Beach, CA · Member since 2017 · 218 posts · 138 votes
6y
@Boots Bonner $100 billion is only about 3 months of rent. That's a drop in the bucket, and not a fair trade for a government taking of property rights on such a scale.
US renters paid $504 billion in rent in 2018, according to a study from hotpads.
Investor · Nashville, TN · Member since 2016 · 42 posts · 68 votes
6y
It says "voucher" - however the rules for rolling out the funds to landlords are not written yet. And they won't be drafted until the Senate passes the bill and it is signed into law by the President. As a recovering bureaucrat, my guess is that it could be something like Section 8 vouchers. But that is just a guess based upon the fact the government doesn't like to reinvent the wheel. Of course there can be changes prior to the bill being passed. Recommend everyone should google schoolhouse rock - how a law becomes a bill. A 3 minute cartoon that explains the process for a bill to become a law.
@Bjorn Ahlblad. I am thinking about investing in WA and noticed your response. May I ask which cities are the inner cities you talked about? I am aware of Seattle rental policies are so landlord unfriendly.