Hereos Act will hurt landlords in a bad way

Hereos Act will hurt landlords in a bad way

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?

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Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
6y
Originally posted by @JR C.:

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?

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  • Member since 2020 · 78 posts · 15 votes
    6y
    Originally posted by @Account Closed:

    How long will this be in effect ? How long will tenants essentially not have to pay rent ? Is this a 6 month-1 year thing or moving forward this will be something landlords have to deal with?

    this is what i have been asking too. does this bill expire after 12 months or does it last forever? in terms of the tenant not getting evicted for 12 months?

  • Longwood, FL · Member since 2016 · 10 posts · 14 votes
    6y

    @Joe P.

    It was part of a bill proposed by Ilhan Omar, and co-sponsored by AOC.

    https://reason.com/2020/04/20/ilhan-omars-bill-would-enable-the-feds-to-seize-landlords-properties-for-trying-to-collect-rent-during-coronavirus/

    "According to a summary of the bill put out by Omar's office, landlords making use of these relief funds would also have to give tenants a 10 percent equity stake in their properties."

    https://omar.house.gov/sites/omar.house.gov/files/Omar%20-%20Rent%20%26%20Mortgage%20Cancellation%20Act%20-One%20Pager%20and%20Legislative%20Framework.pdf

  • Member since 2019 · 29 posts · 31 votes
    6y
    Originally posted by @Wesley W.:
    Originally posted by @Indre White:

    What I would advice to current landlords is to add addendum to newly signed leases that tenants will  pay rent as stipulated in lease agreement and not take advantage of rent deferrals/deays. ets.  If they sign- the landlord is protected. This helps. Also, with law suits, addendum is they key to protect your property, otherwise it leaves you at risk of slip and fall accidents, etc.  

    These laws and executive orders are SUPERCEDING the legal contracts we all have.  This is exactly the problem.  The government can come in and overwrite an existing agreement between two parties to the clear benefit of one, and the other without recourse.

    That is exactly why courts will eventually overturn these laws, but much damage will be done in the meantime.  I'm sorry Wesley.  That really stinks.  That kind of thing is exactly why I, as a CA resident, no longer own rentals in CA.  I know others who are still going through it and make good money with primarily Section 8, but it's just not worth the headaches and frustration to me.

  • Member since 2019 · 29 posts · 31 votes
    6y
    Originally posted by @Ryan Schaefer:

    @Joe P.

    It was part of a bill proposed by Ilhan Omar, and co-sponsored by AOC.

    https://reason.com/2020/04/20/ilhan-omars-bill-would-enable-the-feds-to-seize-landlords-properties-for-trying-to-collect-rent-during-coronavirus/

    "According to a summary of the bill put out by Omar's office, landlords making use of these relief funds would also have to give tenants a 10 percent equity stake in their properties."

    https://omar.house.gov/sites/omar.house.gov/files/Omar%20-%20Rent%20%26%20Mortgage%20Cancellation%20Act%20-One%20Pager%20and%20Legislative%20Framework.pdf

     I notice that Omar's proposed legislation does not address any relief for landlords who own their properties outright and therefore don't have a mortgage payment to cancel (if they want to accept the onerous other conditions of that relief).  Her opinion seems to be that such property owners are wealthy and can afford the loss, but for some folks, the rents from those properties may be their primary source of income.  The loss of that income therefore could create tremendous financial hardship, forcing a sale at a steep loss.  She seems to think, oh well, at least they would have a property to sell.  But if that property is their source of retirement funds for the rest of their life, selling it could leave them devastated at the very time when they most need funds because they can no longer go back to work.

  • Bedford, TX · Member since 2016 · 79 posts · 24 votes
    6y

    @Michael Lenahan,

    One school of thought is we're worrying about something that not happen, then again, did we ever expect to live in a country where our contracts could be null and void?


    I have a tenant who has not paid since February. I started the eviction process and then Covid hit. Now, because I have a fannie loan, I can't continue the process until July. Who knows how long the courts are backlogged.

    So my lease is pretty much null and void since I cannot execute the eviction because the law states I cannot.

    We can't just sit here like pigs to the slaughter. We need to reach out to our congress representatives and senate representatives and let them know we're neither huge corporations nor fat cats but rather ordinary people and they are jacking with our livelihood.

  • Member since 2020 · 71 posts · 72 votes
    6y

    @Jeannie H Armstrong 10k must be something wrong etc.. I used to buy into that story as a rookie. However, through experience I no longer believe that story nor will I allow myself to believe that. Tell u what if u got money put it up. If I can’t produce that result for you I’ll pay u. Yes and most time your right those are the type of scenarios you’ll get for 10k. And I was only making a point on why people are where their at. People today are where their at based off what was done or not done yesterday. But before I paid a landlord I’d buy one of those scenarios and live in it work on it and walk to work if I had to.Why?Because Freedom means that much to me.

  • Engineer · Black River, NY · Member since 2015 · 14 posts · 6 votes
    6y

    I just read everyone is putting their hopes on a vaccine. Well here is the facts. Number one the virus/ has not been identified using Koch Postulates or Rivers it is based on genome sequence from the Chinese Government that is similar. The tests do not test for a virus but for R.N.A which if you have been sick or stress your cells release R.N.A. not just from a virus.  There is no animals to test a vaccine on because there are 34 different coronavirus and the test animals develop no symptoms. The Coronavirus has mutated to be less lethal and is going away all the media hype is fake numbers composed of people who died WITH not from Coronavirus and multiple underlying illness. if you believe the test. Testing is based on amplification a fancy word for magnification but there is no standard so I guess its better than nothing right?  Doctors were denied by governor executive orders then FDA a treatment protocol that if used at onset stops the symptoms in its track so there is a treatment that does not require a vaccine for COVID-19. If you pay attention media only reports about people on vents and at that stage, 80% of vent patients die from the vent, not the illness.  Finally, the vaccine they are talking about is an R.N.A. vaccine that will turn your immune system response to overdrive which will be weakened for the months of mask-wearing so check out all the autoimmune diseases from an immune system on overdrive, let us see Crohn's, Lupus, just to name two. Operation Warp speed does away with animal testing of the vaccine and no one is doing a large clinical trial on their R.N.A. vaccine they are only looking to see if an immune system response which your body. if you want an immune response get sick from COVID-19 it won't kill you it is not a death sentence cause there are millions and millions of people who have had it and still walking around. Therefore testing positive means nothing!!!

  • Rental Property Investor · Member since 2019 · 48 posts · 38 votes
    6y

    I take this Act with a grain of salt. Years ago the Republicans voted over 20 times to reverse Obamacare and when they actually had the votes, they voted against the position. So DC tends to make a lot of symbolic moves which is sad because symbolism, other than being cathartic, doesn't really achieve anything. Right now, the Democrats in the House are playing to their base so this bill does that. What worries me is the rush to judgement given our current climate of bandwagon social values. The abandonment of due process, election year politics and socialist policies are collectively a dangerous combination given how reactionary legislation has very real consequences.

  • Summerville, SC · Member since 2018 · 588 posts · 252 votes
    6y

    i am just super thankful I live in a locale where the law is conservative, fair, and reasonable.  No one should be permitted to live for free for unreasonable periods of time - 12 months is wholly unreasonable. Frankly, if you lose your job due to the current crisis, you need to pick yourself up (eventually) and find a new job.  It can be done.  Just last month Amazon was hiring 100k people.  Jobs are out there.  After a very long period of time elapses, the situation likely becomes a question more of "wanting and trying" to find a job vs being truly unable to secure work

  • Suzanne PlayerPro Member
    Attorney · New York City / Long Island, NY · Member since 2020 · 597 posts · 248 votes
    6y

    @Glen West - Glen I am wondering if you put the judgement on the non-paying tenant's credit report??  Or does it happen automatically in your state?  

    Because if it can go on their credit report, it makes it a priority for that tenant to pay what they owe you.  If they don't, it affects how much they pay on their car loan/lease, whether they can rent another place without extra security or upfront payments, or how much they pay for insurance.  If they ever want to buy their own place, the bank will see that judgement and almost always require it be paid before closing (unless it's not an A credit loan, which costs them more also). 

    It's not a guarantee you get your money back, but it makes it much more difficult for those tenants to avoid payment.

  • Rental Property Investor · Philadelphia, PA · Member since 2015 · 95 posts · 53 votes
    6y
    Originally posted by @George Genovezos:

    @Michael Lenahan,

    One school of thought is we're worrying about something that not happen, then again, did we ever expect to live in a country where our contracts could be null and void?


    I have a tenant who has not paid since February. I started the eviction process and then Covid hit. Now, because I have a fannie loan, I can't continue the process until July. Who knows how long the courts are backlogged.

    So my lease is pretty much null and void since I cannot execute the eviction because the law states I cannot.

    We can't just sit here like pigs to the slaughter. We need to reach out to our congress representatives and senate representatives and let them know we're neither huge corporations nor fat cats but rather ordinary people and they are jacking with our livelihood.

    George, yes.  I hear you. Ideas like yours to prevent government intervention in to the free market is constructive. Slinging rumors and speculation is not.  Do you belong to a local landload association?  I know of a few that are sueing their local governments for suspending evictions.
  • Bedford, TX · Member since 2016 · 79 posts · 24 votes
    6y

    @Michael Lenahan

    Yes. I do. We have not started suing the government but we are in discussions.

    I would agree with you that we should not sling rumors and speculation, but we have a bill. And we also had a bill that became a law, that is costing us money right now.

    Prevention is what I'm looking for.

  • Member since 2020 · 78 posts · 15 votes
    6y

    If this bill passes. Does it last only 12 months and then expires? Or this 12 month no tenant pay lasts forever with no expiration? ex. a tenant moves in 2 years after this bill is passed. They dont pay rent. Would this 12 month evict restriction still apply or it expired and things are normal again?

  • Member since 2019 · 33 posts · 28 votes
    6y

    This act really stands for :

    House Employees Raiding Of Everyones Savings (HEROES)

  • Benson, NC · Member since 2019 · 133 posts · 3 votes
    6y
    Originally posted by @Kurt Stresau:

    I'm curious if we have any real estate attorneys on this thread (probably).  It strikes me that it would be worthwhile for ALL landlords to consider the contents of their leases, particularly to see if there is a "Force Majeure" clause contained therein.  One of the easiest examples of a Force Majeure condition would be regulatory or legal changes at the national level.  If you had a lease (private party agreement) with a tenant, and if there was a national-level legal change that excused one party from their obligations under the contract, that WOULD be a Force Majeure event.  Properly structured, such a force majeure clause would render the lease null and void.  At which point the tenant's occupancy defaults to whatever is the legal default.   Here in Florida, that would be a month-to-month tenancy.  You would then immediately non-renew that month to month tenancy and ask the tenant to leave.  Evict as required.

    Summarizing: 
    1) Write all new leases with a clear Force Majeure clause rendering the lease null and void under major federal policy changes.
    2) Lease is voided by federal action under said force majeure clause.
    3) Without a lease in place, tenant reverts to month-to-month tenancy, and all rights under the now-null lease are non-existent.
    4) Notify tenant of non-renewal.
    5) Remove tenant as required.

    In North Carolina, one can evict, but if the tenant does not leave, one must start through the courts and eventually get the sheriffs office out to remove the tenant (yes, this takes months).  And without courts willing to do their part (and yes, this includes non-renewal) or sheriffs willing to do their part ... there is still no teeth in this technique.

  • Investor · Cocoa, FL · Member since 2015 · 4 posts · 9 votes
    6y
    Originally posted by @Michael Casile:
    Originally posted by @Kurt Stresau:

    I'm curious if we have any real estate attorneys on this thread (probably).  It strikes me that it would be worthwhile for ALL landlords to consider the contents of their leases, particularly to see if there is a "Force Majeure" clause contained therein.  One of the easiest examples of a Force Majeure condition would be regulatory or legal changes at the national level.  If you had a lease (private party agreement) with a tenant, and if there was a national-level legal change that excused one party from their obligations under the contract, that WOULD be a Force Majeure event.  Properly structured, such a force majeure clause would render the lease null and void.  At which point the tenant's occupancy defaults to whatever is the legal default.   Here in Florida, that would be a month-to-month tenancy.  You would then immediately non-renew that month to month tenancy and ask the tenant to leave.  Evict as required.

    Summarizing: 
    1) Write all new leases with a clear Force Majeure clause rendering the lease null and void under major federal policy changes.
    2) Lease is voided by federal action under said force majeure clause.
    3) Without a lease in place, tenant reverts to month-to-month tenancy, and all rights under the now-null lease are non-existent.
    4) Notify tenant of non-renewal.
    5) Remove tenant as required.

    In North Carolina, one can evict, but if the tenant does not leave, one must start through the courts and eventually get the sheriffs office out to remove the tenant (yes, this takes months).  And without courts willing to do their part (and yes, this includes non-renewal) or sheriffs willing to do their part ... there is still no teeth in this technique.

    Michael,

    There might be something to consider.  Legal notices can sometimes be delivered by Process Servers (private entities) instead of the Sheriff or other law enforcement.  That WON'T get you any enforcement since they are basically just glorified message runners.  On the other hand, it does serve as legal notice.  In the state of Florida, there are some laws (haven't read them in years) that "holdover" tenants are liable for double rent.  I'm sure there are some nuances and I'm no attorney.  I've never needed to use that section of the state landlord/tenant laws, so my recollection is a bit fuzzy.  I'm fairly sure that if a Process Server served notice that an eviction judgement had been entered into the Court record, and if the tenant refused to leave anyway....their economic liability just went up dramatically.  Informing them of that scenario might be enough to get them out.

    Or....it might mean you would have to send a very large dollar figure to collections.  That might increase your chances of getting at least something back (many months later).


    http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0000-0099/0083/Sections/0083.06.html 

  • Developer · Portland, OR · Member since 2020 · 1 post · 0 votes
    6y

    My question is Will there be funds/ grants to pay delinquent rents? 

  • Member since 2020 · 71 posts · 72 votes
    6y

    @Michael Casile Look, since February not sure how many are in each unit? That’s potentially 1200 a person throw a kid that’s an extra 500. Plus if their not working that means their getting unemployment. In the Govenors orders (North Carolina) if the dwelling is unsafe or unhealthy they can vacate. I haven’t experienced this problem yet, however I got that in my arsenal of things to do in the event such problems arises.  Take a hammer bust a sewer pipe then say it’s unsanitary u got to go!!

  • Member since 2020 · 71 posts · 72 votes
    6y

    @Michael Casile Look, since February not sure how many are in each unit? That’s potentially 1200 a person throw a kid that’s an extra 500. Plus if their not working that means their getting unemployment. In the Govenors orders (North Carolina) if the dwelling is unsafe or unhealthy they can vacate. I haven’t experienced this problem yet, however I got that in my arsenal of things to do in the event such problems arises.  Take a hammer bust a sewer pipe then say it’s unsanitary u got to go!!

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y
    Originally posted by @Michael Casile:
    Originally posted by @Kurt Stresau:

    I'm curious if we have any real estate attorneys on this thread (probably).  It strikes me that it would be worthwhile for ALL landlords to consider the contents of their leases, particularly to see if there is a "Force Majeure" clause contained therein.  One of the easiest examples of a Force Majeure condition would be regulatory or legal changes at the national level.  If you had a lease (private party agreement) with a tenant, and if there was a national-level legal change that excused one party from their obligations under the contract, that WOULD be a Force Majeure event.  Properly structured, such a force majeure clause would render the lease null and void.  At which point the tenant's occupancy defaults to whatever is the legal default.   Here in Florida, that would be a month-to-month tenancy.  You would then immediately non-renew that month to month tenancy and ask the tenant to leave.  Evict as required.

    Summarizing: 
    1) Write all new leases with a clear Force Majeure clause rendering the lease null and void under major federal policy changes.
    2) Lease is voided by federal action under said force majeure clause.
    3) Without a lease in place, tenant reverts to month-to-month tenancy, and all rights under the now-null lease are non-existent.
    4) Notify tenant of non-renewal.
    5) Remove tenant as required.

    In North Carolina, one can evict, but if the tenant does not leave, one must start through the courts and eventually get the sheriffs office out to remove the tenant (yes, this takes months).  And without courts willing to do their part (and yes, this includes non-renewal) or sheriffs willing to do their part ... there is still no teeth in this technique.

     An eviction doesn't occur until you go to court to get a judgement. Giving notice to vacate, notice of termination, notice to cure or quit, notice to pay or quit - is the first step. If the tenant leaves of their own will, they have not been evicted. It is only if they refuse to leave that you file for eviction and only after you prevail in court have they been evicted. 

    Some landlords are just posting notice to vacate. They may even title it "Eviction" but that is not legal. Only a court can award eviction and with that judgement, you can have the sheriff forceably remove if they don't leave willingly.

  • Member since 2020 · 71 posts · 72 votes
    6y

    @Joe Splitrock if someone hadn’t paid me in four months theyd be out. At that point you know their just using the system to their advantage. If I had to make an unhealthy or unsafe situation I’d make it that way then call code enforcement out let them temporarily shut me down and get those ******** out!

  • Real Estate Agent · Tucson, AZ · Member since 2014 · 59 posts · 30 votes
    6y
    Trump is a property owner and so is Boy Kushner. This isnt in their best interest.  Wont likely pass.

    Hes all over getting these folks back to work. This is clearly de-incentivizing those willing to sit out the needed recovery. You cant tell me the guy that was looking to trade your Obama phone for an alarm clock is going to see the passing of this bill. Sounds ironic.
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    6y
    Originally posted by @Shane Ussery:

    @Joe Splitrock if someone hadn’t paid me in four months theyd be out. At that point you know their just using the system to their advantage. If I had to make an unhealthy or unsafe situation I’d make it that way then call code enforcement out let them temporarily shut me down and get those ******** out!

     I understand your frustration, but advocating illegal means to remove tenants is not the right answer. 

  • Member since 2019 · 13 posts · 12 votes
    6y

    Will the Heroes Act expire? Don’t count on it. This is how government gains power - by enacting Emergency Laws - using a crisis as an excuse.  Instilling fear through the media helps pave the way for citizens to give up their rights and go along with more intrusive government. It always happens during crisis and wars when fear can be easily generated.   But somehow,  the “emergency” never goes away and government keeps its new powers. 

  • Member since 2019 · 29 posts · 31 votes
    6y

    Silly question maybe, but how do I "vote" for another person's post?  I'm not finding that option.  Thanks in advance.

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