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?
Rental Property Investor · Lehi, UT · Member since 2018 · 5 posts · 2 votes
6y
I don't think this will pass, but it's sad how lawmakers don't look past the first stage. If they screwed over landlords nation-wide, rental costs would skyrocket. They're hurt the people they're trying to help. How can they write legislation without looking a couple of months into the future? Unbelievable.
@Susan Maneck That's what I was thinking. But you can bet deposits will go up unless there's legislation to stop that. Deposits would serve as de facto insurance against nonpayment, at least to some extent. You have to think, if the govt just upped my risk level, how do I protect myself? LLs will find any number of ways to do it, possibly including upping the deposits as a form of protection.
In California you can charge a deposit equal to two months rent, but if you did that in Mississippi you'd end up with no tenants. Like I said, my tenants are paying, if solely. The $600 enhancement was more than most made, the question is what happens when that dries up? In any case, I'm not evicting any tenant if I know they are playing straight with me. The last thing I want is to have my house go vacant and have to look for new tenants during this pandemic.
Rental Property Investor · Valley View, TX · Member since 2018 · 174 posts · 87 votes
6y
@Susan Maneck Same here. I think most states don't have limits on deposits like CA (Texas, where I am, doesn't). I don't think people would jack them up right away, but they'll creep up there. It's a backdoor form of screening. People have to hedge risk. We cut one of our tenants' rent because she's a hairdresser and was out of work. Like you, I didn't want to have to find a new renter in this environment. Waddayagunna do, eh?
@Susan Maneck Same here. I think most states don't have limits on deposits like CA (Texas, where I am, doesn't). I don't think people would jack them up right away, but they'll creep up there. It's a backdoor form of screening. People have to hedge risk. We cut one of our tenants' rent because she's a hairdresser and was out of work. Like you, I didn't want to have to find a new renter in this environment. Waddayagunna do, eh?
Let's keep in mind that this a temporary situation.
@JR C. that’s an interesting question. I been selling a lot since January. I started selling only because I thought the Market had topped. So, to me that meant I could sell at the top buy back cheaper at a later date. I have trimmed back significantly but what I got now I intend on keeping. Actually got one I’m fixing right now, still haven’t made up my mind if I’ll rent it or flip. If I rent it out they are going to have at least 6 months to a year of rent upfront(just way I see it moving forward, with all these unknowns.) I don’t have a crystal ball but for me, I did what was right for me. I have found overtime go with your gut. Let’s look at the knowns. In a Recession what happens? Money Supply is restricted. Unemployment and these New Rental Laws suggest nothing getting better anytime soon. In fact, with all this Stimulus, Unemployment, and New Rental Laws these are Socialistic approaches to a Capitilistic Society. Which, are total opposites of each other. Research Socialistic or Communism in other countries, they have Landlords but it’s hard to get someone out. I too everything I have is bought outright only because I want to be flexible for times like these. But I will say people are still buying so I’m more geared towards flipping right now.
@JR C. that’s an interesting question. I been selling a lot since January. I started selling only because I thought the Market had topped. So, to me that meant I could sell at the top buy back cheaper at a later date. I have trimmed back significantly but what I got now I intend on keeping. Actually got one I’m fixing right now, still haven’t made up my mind if I’ll rent it or flip. If I rent it out they are going to have at least 6 months to a year of rent upfront(just way I see it moving forward, with all these unknowns.) I don’t have a crystal ball but for me, I did what was right for me. I have found overtime go with your gut. Let’s look at the knowns. In a Recession what happens? Money Supply is restricted. Unemployment and these New Rental Laws suggest nothing getting better anytime soon. In fact, with all this Stimulus, Unemployment, and New Rental Laws these are Socialistic approaches to a Capitilistic Society. Which, are total opposites of each other. Research Socialistic or Communism in other countries, they have Landlords but it’s hard to get someone out. I too everything I have is bought outright only because I want to be flexible for times like these. But I will say people are still buying so I’m more geared towards flipping right now.
Benson, NC · Member since 2019 · 133 posts · 3 votes
6y
I'm unlucky enough to live in NC (used to be a good state before Roy Cooper). Cooper and Stein are doing everything in their power to destroy whatever small businesses have survived their lockdown. Already they have closed the courts and the sheriffs offices to all eviction related work. So my tenants are pretty much in as long as they wish. Thank God most of them are still paying, but a few are already quite clear that they're going to play it out as long as they can. Cooper's ploy in NC is just for one month, but it can be extended indefinitely.
So the govt who has never helped me renovate a house, pay taxes, collect rent, repair a roof, install a HVAC system is now my new daddy? I guess I just have the privilege and should bow down to the power to be. I don't think so
Maybe the best way to handle this situation is by doing month to month leases? That way if they don't pay you can just not renew their lease and they have to leave, right?
Investor · Cocoa, FL · Member since 2015 · 4 posts · 9 votes
6y
A federal ban on evictions likely constitutes "taking" for the public good. If that occurs without compensation, that constitutes a violation of the 5th amendment to the Constitution. I suspect that it would not make it through the Senate, nor the current president. If it did, it would immediately be hit with a federal lawsuit in a conservative district....and immediately get hit with an injunction preventing it from going into effect.
Rental Property Investor · St. Louis, MO · Member since 2019 · 11 posts · 5 votes
6y
I’m Not A Provider For Free Housing!
If the Democrats want to offer rent-free properties to tenants, please be sure to pass a Bill to reimburse owners. There are 20 million single-family rental properties in the country. Free rent would collapse that industry resulting in a housing crisis like never before.
The Senate has enough business savvy to stop this nonsense before it even hits the floor!
Investor · Newark, NY · Member since 2016 · 19 posts · 41 votes
6y
@David A. Santana
I was exaggerating a little. We can do background checks but cannot take into account previous tenant landlord actions. Also the laws on late fees in NY are soooooo tenant friendly it's crazy. Also we've had a eviction freeze for awhile. The way I look at it is this business is like any other the tenant are our customers. If we treat them like gold and communicate with them most times things will go well. Every once in while you will get a bad one that you cant please. In that case it's best to part ways. I just hear so many people complaining about tenants and I think either your in a bad area, you're not screening well, or you're treating your tenants poorly and they are mad at you.
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.
Why would you be more worried about being a LL in an inner big city market, Bjorn?
@JR C. it clearly states houses with federally backed loans since you do not have a mortgage it does not apply to you.
I think you are confusing the CARES ACT with the HEROES ACT. The Cares Act does in fact say it is only Federally backed loans. The Heroes Act mandates it to ALL properties. It doesn’t matter if it has a mortgage or not.
Oh boy. I see why Bigger Pockets has just designated this thread as a "Trending Topic" I can't go through seven screens of posts so my comment may be redundant. No solution to offer though one of the principles of resiliency, diversification, is probably on your mind. If you are a farmer, you are taught to have income from different markets. If you are raising slaughterhouse steers for the meat market, then also produce soybeans for that market, and peaches for the fruit market. You get the idea. It's challenging for sure and economically "Inefficient" but a cattle disease, a soybean disease, and a peach disease are unlikely to all hit the same year. It will be a remarkable time when LLs are exposed to so much risk that they all decide it's a better deal to become tenants themselves! And yes, I do realize other parts of the system such as financing will probably disappear before that ever happens.
Weatherford, TX · Member since 2017 · 63 posts · 43 votes
6y
With all the investors BP has on here it seems we could make a big dent in the vote by all of us contacting our representatives and asking them to vote down any act that will:
-take always property owners rights
-transfer the finically burdens of others into property owners with no relief for them
It’s hard to believe but our representatives DO want to hear for us. I have called various times in the past and have always been well received.
They want to represent you, tell them how you feel so they can do so accordingly.
Is it saying the tenant does not have to pay for 12 months on the day this bill is put into place (if, it would pass) and then ends... ex. say 7/1/2020. So after 7/2/21.... this bill no longer applies anymore?
Or is it saying once this bill is put into place (if, it would pass).... ex. say 7/1/2020. If i new tenant moves in on say 8/1/2021... they dont have to pay for 12 months? So this bill is put into place with no expiration?