12.8 million owe average of $5,400 from missed rent payments

11 Replies

wHAT? mE wORRy?

2021 is going to be Rough no matter Who is running the asylum.

(By the way, did you know that renters who can no longer pay rent can probably get rid of the rent back payments by filing bankruptcy? And, No, you as a landlord don't get anything out of it. Doesn't that just warm your knickers?)

The Crashing Rental Market Could Set Off The Next Housing Crisis

From Zerohedge

"There's not doubt that many renters - including many businesses - don't have the means they once did to pay their rents.

And though we knew the fall in prices was likely to get worse before it got better, the Wall Street Journal is taking it one step further and now asking the question of whether or not the rental price plunge could actually set off the next housing crisis.

Another question also remains: how bad will the eviction scene be when the protections against eviction put into place by federal and local government expire? It is estimated that such moratoriums may wear off by January 2021, or even sooner. At that point, renters will need to pay up for the months they've missed."

During the beginning of the pandemic, many households made a shift to credit cards to try and stay afloat.

"Kate Bulger, a financial counselor specializing in housing debt at the
Money Management International counseling firm, said: “Even if now they
are able to make their rent payment, that huge inflation to their
credit-card debt has become a new threat to their budget and their
ability to cover all their expenses.”


Where would they actually get that data from? We manage 100+ houses in NJ with low income tenants and student tenants (i.e. volatile groups who claim hardship to pay) and we've collected 99% of rents. 

I think the bad numbers tend to come from major cities with a large population of apartment dwellers. I network with a lot of property managers that mostly manage single-family homes and it's business-as-usual for them.

Originally posted by @Nathan G. :

I think the bad numbers tend to come from major cities with a large population of apartment dwellers. I network with a lot of property managers that mostly manage single-family homes and it's business-as-usual for them.

when you read BP landlord posts U will see a few talk about missed rents etc.. but I have to say to me it seems like 90% of the landlords on BP have better collections than pre covid or at least they say that.. could be the ones with poor collections just don't post.

And from what I see in the OOS rental house buying niche its still on FIRE.. no slow down there. 

 

@John Farady   time to open a BK  mill  to handle all these tenants.. flat fee  999.00 stay in your home for a year.. Just like what happened in Vegas during the GFC.. you saw billboards everywhere.  :)

Originally posted by @Jay Hinrichs :
Originally posted by @Nathan G.:

I think the bad numbers tend to come from major cities with a large population of apartment dwellers. I network with a lot of property managers that mostly manage single-family homes and it's business-as-usual for them.

when you read BP landlord posts U will see a few talk about missed rents etc.. but I have to say to me it seems like 90% of the landlords on BP have better collections than pre covid or at least they say that..  could be the ones with poor collections just don't post.

And from what I see in the OOS rental house buying niche its still on FIRE.. no slow down there.  

So this sounds like it's more "opportunity" than it is "risk" to continue buying single family? Those people have to end up somewhere. I understand that commercial is taking a beating, does that include apartments in high density areas?

 

I think it is larger cities, and within those cities, the lower income neighborhoods who will be hurt the most. 

Also, I don't think people losing rent, unpaid tenants, etc. will be posting about it all too much on BP. 

It will be interesting to see how it unfolds, and also how Nov. 3 impacts the moratoriums, among many other short term impacts. 

Originally posted by @MIke Wu :
Originally posted by @Jay Hinrichs:
Originally posted by @Nathan G.:

I think the bad numbers tend to come from major cities with a large population of apartment dwellers. I network with a lot of property managers that mostly manage single-family homes and it's business-as-usual for them.

when you read BP landlord posts U will see a few talk about missed rents etc.. but I have to say to me it seems like 90% of the landlords on BP have better collections than pre covid or at least they say that..  could be the ones with poor collections just don't post.

And from what I see in the OOS rental house buying niche its still on FIRE.. no slow down there.  

So this sounds like it's more "opportunity" than it is "risk" to continue buying single family? Those people have to end up somewhere. I understand that commercial is taking a beating, does that include apartments in high density areas?

 

Portland unlike many cities in the mid west rust belt deep south.. traditionally had very few SFRs as rentals. So it will be interesting to see SFR's taken out of rental use and sold to owner occs there is a shortage of nice SFRs in the portland market Like many markets..

but its a huge difference between a rental home and a home someone will pay top dollar for to live in.. 

 

@Peter T.

I’m 10 min from NJ (Staten Island)... any good areas you recommend for cash flow? I looked st some properties in Newark & some a little further by the shore condos in the 60-90 range that cashflow 5-600 a month.. any specific area you’d recommend for a newbie to jersey

Originally posted by @Jay Hinrichs :

@John Farady  time to open a BK  mill  to handle all these tenants.. flat fee  999.00 stay in your home for a year.. Just like what happened in Vegas during the GFC.. you saw billboards everywhere.  :)


Everything old is new again. Hehheh

 

@John Farady

What is that, like under 2% of the country?

Some landlords will be in trouble but most will be fine.

As long as the stimulus keeps flowing…