Rent Moratorium Hurts Immigrants, Minorities, Blue Collar

16 Replies

There are so many examples of little investors being smashed by unfair government regulation. They force small businesses to close but keep Walmart and Amazon open. They stop evictions knowing small investors will be crushed while big companies can ride out the wave, apply for loans or grants, and eventually recoup their losses.

I'm seeing so many stories of investors that are self-made immigrants, minorities, single mothers, and more. They save up, invest, and then the government changes the rules and kills them off.

This guy is a perfect example. Government will kill his dreams in an effort to protect renters that may not even by trying to find work and pay their bills.

https://www.nj.com/hudson/2021...

Just horrible and a very real problem. WSJ did a story and video on this last year:

In NJ, where he holds- There has been a huge shift out of the Urban areas and their immediate surroundings. Which explains the 1-2 punch of no rent and vacancies. There is also a HUGE demand among institutional investors to get these distressed properties and add them to their balance sheets, putting pressure on banks and courts to mercilessly foreclose.

I am tempted to speculate on his business model- having missed a mortgage payment in March 2020, but I won't go there.

WSJ Video

Originally posted by @Patrick M. :

Just horrible and a very real problem. WSJ did a story and video on this last year:

That video is from May 2020. Just imagine how much worse it is now.

As Ms. Hussein explains, her tenants stopped paying rent but refuse to even show evidence they are impacted by COVID (a requirement of the eviction moratorium). Even when Tenants refuse to follow the rules, Landlords are given no recourse.

 

Agreed...

It is such an absolutely horrendous response... a blanket resolution which usurps the powers of the courts to decide evictions.

I mean, imagine for a second a Court deciding that it was not going to allow a legislature to pass any more laws! That is their job, just as it is a courts job to hear landlord tenant cases.

A person should have to somehow show hardship. Just not wanting to pay is wrong. I think our entire system of renting and landlord is immoral and traps millions of people into a situation where they are paying some one else’s bills and will never ever be able to own anything themselves because of it, and I think using a basic human need like shelter as an investment is disgusting, but I made sure my rent was paid in full and on time all during the pandemic. If you can, you need to because there are some people who are good decent landlords and if they get taken out of the picture then all that will be left are soulless corporate residential management firms that do not give a s*** about anyone or anything but money. 
it’s so dumb to just assume you can keep getting away with not paying. At least get assistance. I won’t lie I’m currently taking advantage of the unemployment benefits and using a rental assistance program gnat pays 6 months rent for people who are hiv positive. But I’m not doing it to sit around the house and play video games. I’m doing it so I don’t have to work and can focus really hardcore on school. This is the first time I’ve been able to just focus on that and it’s great. I’ve wanted to be an emt since I was 19 but having to work 50 hours a week and stressing over all of it meant I never had the time to dedicate to the course. 90 days of Monday through Friday 8 to 5 was just out of the question. And now it isn’t. 
but I also absolutely made sure that rent was taken care of first. Because I’d rather be paying the man I know and can send a text to and see face to face than some soulless Wall Street coke head

@Nathan G. hopefully Leslie can bounce back. Time to get a job. At this point he still owns 2 apts. It is good he can lose the losers and be able to keep the ones with paying tenants. I am not sure being highly leveraged is supposed to be part of the American dream but that is another story. 

@Patrick M. Ms Hussein has 14 properties and no money in the bank and no credit line. That is pretty daring for a widow in her 60's. She needs a cash partner and hopefully can save some equity. 

@Eric Weldon-Schilling as a landlord myself I take exception to you saying it is wrong to pay someone else's bills. Landlords at this time are being asked and forced to pay many tenants rent. 

You should work hard and save and buy something yourself. That way you can buy a roof when it is needed and buy your own furnace and be responsible for your own future and not rely on some wall street "cokehead" for your housing.

Originally posted by @Jeff S. :

@Nathan G. hopefully Leslie can bounce back. Time to get a job. At this point he still owns 2 apts. It is good he can lose the losers and be able to keep the ones with paying tenants. I am not sure being highly leveraged is supposed to be part of the American dream but that is another story. 

How do you know he is highly leveraged? A Landlord could have 60% equity but still not be able to afford mortgage payments without rent income.

Having a reserve is highly recommended, but it's unreasonable to expect someone to have a reserve capable of covering an entire year. At any other time in history, these Landlords could get rid of the non-paying renter and put someone else in, even at a low rate that enables them to scrape by. This is not about Landlords investing wisely; it's about a government that is preventing them from operating their business through nonsensical regulation.

 

@Nathan G. guess he isn't highly leveraged with 600k down and a 1.2 million dollar loan. By commercial standards lenders like to see net worth equal to the loan amount so by that he is a little skinny and the lender really is at fault for giving him that loan without additional credit and reserves.

I am not faulting the guy but to expect the American dream to always go your way is unrealistic. I used to have the same idea that if I worked hard I'd always be ok. Well I guess I am ok but not until I lost everything. The point is he needs to keep working hard and learn. What I learned was if you are in business and not well capitalized you are at risk of losing everything. Been there.

There are now funds available for LLs that have not been paid.  I dont know what the criteria is in each locale, but in Oregon it is set up so those LLs that are small with a lot of unpaid rent will be first in line.  then I guess once those LLs are paid others can also apply. 

note that I am not agreeing with what the govt did - just saying there is money available now 

Originally posted by @Mary M. :

There are now funds available for LLs that have not been paid.  I dont know what the criteria is in each locale, but in Oregon it is set up so those LLs that are small with a lot of unpaid rent will be first in line.  then I guess once those LLs are paid others can also apply. 

Bad news is that we slaughtered your family. Good news is that we have caskets on sale. 

Originally posted by @Greg M. :
Bad news is that we slaughtered your family. Good news is that we have caskets on sale. 

Hey I am one of those LLs that had a tenant that did not pay... I am merely giving information for those that may not know funds are available. 

To me the entire thing was poorly planned - but hey no one knew we would be at a year and counting. 

I guess the best thing to do is get involved and hope to have some influence. 

Originally posted by @Jeff S. :

@Eric Weldon-Schilling as a landlord myself I take exception to you saying it is wrong to pay someone else's bills. Landlords at this time are being asked and forced to pay many tenants rent. 

You should work hard and save and buy something yourself. That way you can buy a roof when it is needed and buy your own furnace and be responsible for your own future and not rely on some wall street "cokehead" for your housing.

And I agree that no one should be paying for their tenants to live free. The government should have passed a Bill paying everyone’s rent and mortgages like they did in Canada and most of Western Europe, Australia, and New Zealand. 
and no one should be allowed  to  use the renter protections as an excuse  to just not pay. My old neighbors were doing that and it made me angry since  I paid  on time every month. We were the only ones doing so apparently. 
I am trying to save to be able for myself. I resent you implying I have never worked hard. Working hard does not always equal great success and wealth in this country anymore. It’s betting harder and harder to buy homes for my generation because so many of them are being hoarded by “investors” who use them to get richer.
it’s hard to save for a home of your own when you’re paying someone else’s mortgage and property tax while you never get to see any benefit from it. Mortgage interest and payments can be written off on taxes. Rent cannot be. Mortgage payments accrue equity, giving owners stability and a source for emergency funds if needed. Rent does none of that. 
I have paid more in rent than I would have for a mortgage on at least 15 homes I’ve researched and liked. But banks have made it harder and harder to qualify. And requiring such a large down payment at times.  
hopefully I’ll be able to start saving for a house since I’ll be finishing school this summer and starting work as a paramedic. Because I’m sick of renting and being under someone’s thumb. 

Another way the rent moratorium hurts low income people is by domino effect.

Imagine you are really tight on money, just getting by - for whatever reason. Its tough for a lot pf people out there - they aren't dumb or lazy or victim of their own 'bad choices' - there are a million reasons its hard for working people. Now say you are compelled to live on even less than you are accustomed to due to the pandemic, and are not required to pay rent for the time being. How are you going to 'save up' and make sure that when it all ends that you have money to pay that back rent when it comes due? You're not - you can't. So you accrue an ever increasing debt that you will never be able to pay. The government takes its sweet time sending you $1400 for which you are grateful but also dumbfounded - is this a joke? It costs WAY more to live. Hopefully you get a little aid too. Maybe you are even a little less than 100% virtuous because you need to get rid of a high interest debt. Maybe you are tired of your kids being hungry. Combine a little desperation with a dose of resentment to yield your current definition of pragmatism.

And what does your landlord feel? No matter how kind and generous they are, they feel the pinch too. They still need to pay their bills. They have mouths to feed too. So what happens when the rent comes due and you have no money to pay it all back? How attractive does a new tenant with a solid job, credit history and deposit look to that landlord? How likely is it that you are now on the street without the money to pay a deposit on a new place, maybe an eviction and a collection account to boot? What now?

The whole thing stinks.

A rational government who actually cared about workers, tenants, and property owners would do something sensible like pay everyones rent directly (provided they had a bonafide hardship), through a no interest loan. Maybe they could spend a little less bombing the rest of the world or giving huge tax breaks to corporations who've made billions off of the pandemic so they don't need to cry, "Who is going to pay for it?" like they always do. Solidarity among all of us getting royally jerked around by this all is the only answer. Until ten we can continue to get mad as we fight amongst ourselves.