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?
I think the bill is unlikely to pass as well based on how many legislators are also invested in housing and agree that it is just pandering to voters. I do however see some merit in avoiding evictions during a pandemic while people are out of jobs through no fault of their own, no one is winning here. I think what is important though is finding a solution that works for everyone. I would never take out a loan for a tenant or anyone else for that matter so there is no reason I should have to now. I think the idea of a government loan to subsidize rents is a great idea and the money should go directly to the landlord however it should be the tenant taking out the loan and responsible for repayment, possibly through HUD since they have a system in place. This is the best of both worlds since we get our rent, they remain housed, and the Gov. is out the same amount of money either way. The problem with that solution though is that we are seen as being more likely to collect from so there will be considerably less of a default rate. They know the tenants are not going to be able to pay back rent and thats why they want the loans to be on us. As far as the stipulations on the loans for us with no rent increases, evictions, and no cancelling the lease when it expires, all are pure garbage. I would just pull from reserves until the lease was over and then term before I agreed to that.
@Syed H. it’s not necessarily about whom owns the most expensive real estate. Specially when you look into the maintenance cost of up keep when it comes down to “expensive “ real estate. I believe real estate is for those whom prefer the long term profit/income. I’d rather own 10 units in Texas that I’m profiting $300 a pop. Than 10units in Cali that I’m just bearly breaking even with. Specially when dealing with all these tenant protections. I’d rather make a dollar than not make anything at all. But to each his/her own.
I see you are from CA, but have you invested in Ca? My total return has averaged over $2k/Month per unit. For $300/month per unit return, I would look for a different (more passive) investment.
Granted there is a fairly high cost of entry. You also have to deal with government messing with free enterprise (rent control, screening rules, eviction rules, no source of funds rules that implies having to deal with inspections, etc.). I view it as requirements that we must abide with to get that high of a return. It is a trade off that I have been willing to make for the return. Someone else may make a different choice, but it should not be because they are barely breaking even (I cannot imagine anyone in a large coastal Ca city is barely breaking even if their hold is at least a year).
@Ariel Kumpinsky In a more sane country Biden would be considered a conservative. So I doubt he will upset the apple cart of corporate control that we know and love so well. I wouldnt worry so much. The laws that matter come local ordinances. Even in California broaf based rent control was rejected handily at the polls.
It was voted down, but in less than 2 years the elected politicians passed State wide rent control regulations. This was shortly after the voters voted down rent control. The rent control advocates were able to convince the politicians that rent control was a positive even though the voters had just voted it down. How? I think it is because they where louder and possibly better organized.
Yes sir, I have invested in California. I haven’t yet invested out of Southern Cali due to me being scared to take that next step specially with the pandemic happening right now and the ridiculous new moratoriums. I like to invest closer to the inner City. Los Angeles,Compton,Culver City,Torrance and my last purchase was out of Santa Monica. I’m cash flowing pretty similar to you @Dan H. but not the same. My last purchase was out of Santa Monica and I had just closed in February when everything went downhill. I’m turning 30 at the end of this month. I self manage all the properties but I have never been this stressed in my life. I’m Mexican with alot of family in the business end of things like(construction,landscaping,design,plumbing,painting)ect. So that helps out a lot In the long run. But if this goes on for let’s say another year I’m sure I’ll run out of funds. (Cali prices are NO JOKE)
Yes sir, I have invested in California. I haven’t yet invested out of Southern Cali due to me being scared to take that next step specially with the pandemic happening right now and the ridiculous new moratoriums. I like to invest closer to the inner City. Los Angeles,Compton,Culver City,Torrance and my last purchase was out of Santa Monica. I’m cash flowing pretty similar to you @Dan H. but not the same. My last purchase was out of Santa Monica and I had just closed in February when everything went downhill. I’m turning 30 at the end of this month. I self manage all the properties but I have never been this stressed in my life. I’m Mexican with alot of family in the business end of things like(construction,landscaping,design,plumbing,painting)ect. So that helps out a lot In the long run. But if this goes on for let’s say another year I’m sure I’ll run out of funds. (Cali prices are NO JOKE)
When you indicated barely breaking even, this was not factual to try to make a point? Or was it factual on some units due to pandemic, but not true for your entire rental portfolio? It seems very misleading to be making anywhere close to $2k/month per unit and referring to it as barely breaking even.
I understand stress related to the pandemic. We lost around $60k on our STR rents. They are still not rented to their pre-Corona level, so our lost rent continues to increase. This is lost revenue that will never be recovered. Fortunately, all our LTR tenants have paid their rent and we have the reserves that the lost STR rent will not force us to need to sell anything. It will cause a little more budgeting to minimize impact to our reserves.
So before this thread gets too political, I just have to say I really wish there was such thing as the Center in politics...... Anyway, every measure created thusfar has been a knee jerk reaction to the recession caused by the "necessary" halt of business. Any bills need to account for the needs of everyone involved from the renter up to the lender. If evictions are banned and rents forgiven, then so too should be foreclosures and mortgage payments..... if one group gets screwed, then everyone does. Now we all know politicians as a whole are far too invested in their bases to ever think about the "big picture" so this will never happen, but to me this is a short term issue and as I save to purchase new property, I'm looking forward to the changing landscape of the real estate market. As remote work becomes more mainstream, there will be a contraction in the commercial/office market. This space may then be redeveloped into large scale residential by those companies looking to recoup their losses. The resulting influx of square footage on the housing market will cause values to drop for the short term and create a buyer's market. This is what I am looking for and hope to be in a position to pounce when it happens. Now for everyone worried about collecting rent, I've been there too, so good luck. I hope your renters are of the character you thought they were when they signed their lease.
Even I think if you make money past a certain threshold your govt benefits should decrease.I guess i am not understanding your post in relation to this topic.
That said, good for you for buying rentals! Are all your tenants paying?
IMO the govt should of just dumped all these programs and gone straight to "tenant applies for rent/food/etc assistance and landlord gets paid directly etc
Or, better yet they should of possibly just paid everyones payroll and then none of this would be needed!! It would be cheaper too
I was asking how can a president stop a state from initiating legislation other states have? There is states rights (remember those being a conservative value??) and a president has no power over a lot of what states do.
So i am asking you: how can Trump disallow a state from legislating tenants rights?
@Nina Ibrahimbegovic It is on the House web site. Google: The HEROES Act title-by-title Summary It should pull up. Otherwise send me a pm and I will provide the link.
@Mary Mitchell I agree, most tenants are good, honest, hard working people who take pride in their homes and pay their bills but you really have to screen potential tenants extremely diligently. Several of our tenants are making more money now than ever (overtime or stimulus/ extra unemployment money) and have paid up several months in advance. Others that are struggling we are working with and none have missed a payment yet. (Knock on wood) Also we are at 100% occupancy and making offer's every week!
After reading 4 pages of this roller coaster thread ( lessons on everything from Federalism to S. American History), I can confidently say... nobody knows what's going to happen.
But I would be shocked if there would be a MAJOR overhaul of the way the Fed. gov. lets homeowners choose tenants/ collect rents.
I will say, maybe it's just me getting older, but the difference between states like Cali, NY and Illinois vs. Texas, Mississippi, Arizona... we're def. not the UNITED States on damn near every major view point. No bueno for the long term.
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.
Not precisely correct. It extends the moratorium (on all rentals not just those with federally funded loans) for twelve months period, not 12 months after the pandemic is over.
In many European countries evictions can take years and they continue to have 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.
In places like India in which tenants are seen as having primary rights often a years worth of rent up front. It is called "key money." Here, if you had that much money you would buy a house, not rent. Other countries don't have our ready availability of thirty year mortgages.
@Boots Bonner , I guess I wonder where that assistance goes, or is it required to go a certSeain 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?
I've never heard of them giving assistance directly to the tenant in any program. What the tenant gets is a voucher, just like with Section 8. The only difference is that these vouchers will not be renewable.
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.
Can you show me where that is in the Act" The closest thing I can find to it is that you can't report them to the credit bureau during this time. I should add that this Act does provide some relief for landlords in the form of up to 360 days of mortgage forbearance.
@JR C. Just curious, how could one be forced to do section 8 if a property has not passed inspection for it?
I found nothing in the bill which suggests this is the case. Right now I'd be happy to accept Section 8 tenants but the inspection takes soooo long right now.
I can see self evictions increasing. Landlords will become desperate IF they don't collect rent after 3-6months and have to continue paying utilities in a property that tenants are living rent free.
There’s alot of republican landlords in the White House including the president Himself. If it passes them I think it will be time to sell out in Cali and invest only in red powered states. Seems as if alot of landlords are pretty well off investing in those places.
I invest in both Mississippi and California. Yeah, the real estate prices are cheap here, but I spend as much in property taxes for one of these cheap houses here in Mississippi as I do for my place in Tahoe. I find eviction procedures are about the same.
However, come November it's hard to guess what might pass next January. I'm hoping there's enough landlords in Congress to keep this from killing the rental industry.
By January we will likely have a vaccine and none of this will be necessary, except maybe an additional stimulus check to help get us out of recession.
@Mary M. if interest rates are lower in nice areas would that violate redlining laws?
Redlining laws only apply to homeowners, not investors, as I understand it but the ways around it are by adjusting for credit scores and the price of the property.