CDC Extends Eviction Moratorium to June 30, 2021

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CDC Extends Eviction Moratorium to June 30, 2021

Joe SplitrockPro Member
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Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes

This morning the CDC extended the eviction moratorium through June 30, 2021. 

The first stipulation states the tenant is making best efforts to secure assistance. Given the $50B that congress has allocated to rent assistance, it is hard to imagine that anyone that qualifies and tries wouldn't get assistance. It seems reasonable in my opinion to demand evidence of what efforts are being made to get assistance. 

I love the insanity of the income limits on the eviction order. It protects people who made up to $99K individual or $200K jointly in 2020. In other words during 2020 (the pandemic year) you could have a household making $16,000 per month and they could not pay rent claiming hardship! 

https://www.cdc.gov/coronaviru...

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
5y

There's no end to the nonsense. A study in Washington found that of the 212,000 tenants behind on rent, over 12% of them admitted to no loss of income. They are literally refusing to pay rent just because they can get away with it. I suspect 12% is probably conservative.

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  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y
    Originally posted by @Mike Dymski:

    I don't understand why residents can't pay rent due to COVID.  With the stimulus packages, unemployment benefits were ~$1000 per week for much of 2020 and now are ~$700 per week.  And there is loan forbearance for all types of debt along with extra stimulus checks and child tax care credits.  94% of people are employed.  Savings are at all time highs.  What is the fact pattern for non-payment due to COVID?  I am all ears if there is something I am missing.

    Exactly right.

    My first non-paying renter lost her job as a waitress where she earned about $1800 a month. Her stimulus check gave her $1,200. Her unemployment boost (not counting base unemployment) was $2,400. So her first month she earned a minimum of $3,600 but most likely earned over $4,000 which is more than double her ordinary income. She refused to pay rent but I convinced her to leave and didn't lose much. She was seen a month later with a brand new car.

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  • Joe SplitrockPro Member
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    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y
    Originally posted by @Mike Dymski:

    I don't understand why residents can't pay rent due to COVID.  With the stimulus packages, unemployment benefits were ~$1000 per week for much of 2020 and now are ~$700 per week.  And there is loan forbearance for all types of debt along with extra stimulus checks and child tax care credits.  94% of people are employed.  Savings are at all time highs.  What is the fact pattern for non-payment due to COVID?  I am all ears if there is something I am missing.

     Don't forget there were three rounds of stimulus money sent to the states for housing assistance. The first round, my state actually set aside a fund for tenant rent assistance. They reached the spending deadline and the funds where not exhausted, so they opened it up to mortgage assistance. The second round was the CARES Act, which set aside $50 billion for tenant rents and the American Recovery Plan set aside $50 billion for housing assistance, including $27.4 billion directly meant for landlords/rent assistance. There was also $5 billion to combat homelessness. These funds will pay the entire year of rent for tenants, so how can any tenant be legitimately in hardship at this point?

    Throwing money at problems doesn't fix them. You need systems of accountability. Eviction provides accountability. Make the tenant show up in court and provide bank records, unemployment records, proof of applying for assistance, records of how they spend their money, etc. If a tenant can't prove they qualify for hardship or can't prove they made best effort to pay rent, the eviction proceeds. 

    6Reply
  • Marita Jojo
    Rental Property Investor · Philadelphia, PA · Member since 2020 · 116 posts · 23 votes
    5y

    @Joe Splitrock

    Tenants are happy to get all the additional stimulus money and free housing. One of our tenants gave us the signed cdc declaration night before eviction hearing. We are now waiting for the another 60 days for the lease to end so can get the unit back. Not communicating much no partial payments made or discussed but signed under perjury.

    0Reply
  • Karl Schmidt
    Investor · UT · Member since 2020 · 35 posts · 16 votes
    5y

    @John Underwood please explain more. What was the reasoning for eviction? What was the rules you had to abide by?

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y
    Originally posted by @Karl Schmidt:

    @John Underwood please explain more. What was the reasoning for eviction? What was the rules you had to abide by?

    Non payment of rent.

    0Reply
  • Daniel SmythPro Member
    Rental Property Investor · Rockford, IL · Member since 2019 · 471 posts · 342 votes
    5y

    What's needed, is an outright rejection of following the CDC as a governing or law making body.

    But, it's hard to do so when you wear a mask for coronavirus mandates as if they were law, and follow every other direction that is nothing more than a suggestion!

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  • Matthew K.
    Investor · Pittsburgh, PA · Member since 2020 · 36 posts · 16 votes
    5y

    We have issues in Pittsburgh with tenants requesting aid and then just pocketing the money without paying the landlord.  

    0Reply
  • Julie DeWolfe Arroyo
    Realtor · southern Idaho · Member since 2020 · 81 posts · 50 votes
    5y

    Ultimately this is making a large portion of the population (renters) dependent upon the government, while knee capping those who had, by hard work, become housing providers.  Given enough time, housing providers will also become dependent upon the government to avoid foreclosure or accept rental gap assistance.  Either way the plan, "you will own noting and be happy" will start looking like the solution.   

    1Reply
  • Gemma Collins
    Real Estate Agent · Savannah, GA · Member since 2021 · 31 posts · 21 votes
    5y

    How does this news make first-time rental investors feel? We have plans to invest in our first rental property this year, but with this going on, part of me wonders if we're just signing up to potentially bleed money! I know there's tenant screening, but as this shows, people who CAN afford to pay may just choose not to because they fit the criteria.

    Keen to hear perspectives from and opinions for new investors!

    Thanks

    4Reply
  • Chad Lyman
    Investor · Boynton Beach FL · Member since 2019 · 9 posts · 2 votes
    5y

    absolutely ridiculous! I agree with demanding evidence of tenant seeking assistance. 

    1Reply
  • Julie DeWolfe Arroyo
    Realtor · southern Idaho · Member since 2020 · 81 posts · 50 votes
    5y

    Gemma Collins, That is exactly the position I am in.  We are finally there, finally ready, finally in the place we have worked 3 years to be so that we can start investing in rental properties.  Now what?

    2Reply
  • Julie DeWolfe Arroyo
    Realtor · southern Idaho · Member since 2020 · 81 posts · 50 votes
    5y

    So the real question is, do I go to Vegas to "invest" my 20% down at the tables or invest in rentals as guided by the CDC.

    5Reply
  • Gemma Collins
    Real Estate Agent · Savannah, GA · Member since 2021 · 31 posts · 21 votes
    5y

    @Julie DeWolfe Arroyo - it's tough, on the one hand I understand there's always risk involved in property investing and I'm fully prepared for that, but on the other hand I worry that we're about to walk into a market that is actively against people owning anything.

    I'm all for helping those who genuinely need it, but I'm concerned it's just adding to the handout mentality 

    3Reply
  • Julie DeWolfe Arroyo
    Realtor · southern Idaho · Member since 2020 · 81 posts · 50 votes
    5y

    you obviously don't live in an Idaho "good ol boys" club   

    1Reply
  • Andrew EhertsPro Member
    Rental Property Investor · Las Vegas, NV · Member since 2020 · 32 posts · 23 votes
    5y
    Originally posted by @Carl Mathis:
    Originally posted by @Nathan Gesner:
    Originally posted by @Peter M.:

    @Joe Splitrock Landlords are evil money grubbing cretins and deserve what they get. They don't need government protection when they can just take money from their gold filled swimming pools a la McDuck style. Thank God the government is protecting the little guy from those monsters.

     The reality is, they are killing off mom-and-pop investors, which means the large corporations will just continue to grow. What happens when renters have no choice but to rent from one of a few national companies? Government did the same thing with brick-and-mortar businesses that were forced to shut down while everyone was forced to shop at Walmart and Amazon. 

    Government does NOT care about the little people.

     This 1 million percent - the government works for the banks. There is a lot on this forum which is really naive. What they are doing is crystal clear and should be no surprise to anyone who is even the slightest bit informed about what actually happens.

    This is just like 2009 where the policy is quite clearly:

    Cause the little guy, be they renter or property owner, to lose their assets and financial control of their lives to the BANKS via bankruptcy / default / unpayable debt / credit rating disaster. What happens? Corporate landlords and REITs get assets for pennies on the dollar from everyone who loses out on the scam becomes another member of the sharecropper class - indentured to the banks under heavy debt with a landlord that in not an actual person.

    The current incarnation of the 'upward transfer of wealth' game they play without relent no matter who is in office, is to pit property owner against tenants so they both lose. Tenant can't / won't / doesn't pay for a long time, accrues a debt they will never pay, gets evicted (eventually) with a large judgement, credit rating in the toilet, pays exorbitant interest rates, higher rent, larger deposit, can't borrow to buy a house ... Landlord goes through the same mill only they get to start at losing their property and life savings via foreclosure before completing the rest of the steps.

    Its the same game they play when you get sick. "You got sick - awww too bad, we are going to have to drain all your assets - sorry (not sorry)"

    I know a guy who was told in 2008, "Don't pay - you'll get relief" then all he got was foreclosure. OneWest Bank (guess who) got his house for 30 cents on the dollar and then sold it - 70% profit for doing nothing.

    We are all being scammed.

    I get the CBRE and Costar daily RE economy updates, and all they are talking about right now is "Buy distressed for huge discounts."

    This is the real wealth transfer. Happens in the real estate markets just as often as the equity markets, oil market, commodities markets, any market. Prices don't move--they are set.

    1Reply
  • Matthew K.
    Investor · Pittsburgh, PA · Member since 2020 · 36 posts · 16 votes
    5y

    @Gemma Collins my 2 cents would be to sit out for a bit and learn from the process.  Even though rates are low, landlords are getting squeezed and there isnt anything that we can do about it.  I am also seeing that different areas treat this situation differently, so it makes sense to invest in 'safer' areas going forward.  Hope it helps! 

    1Reply
  • Francois G.
    Real Estate Agent · New York, NY · Member since 2020 · 62 posts · 72 votes
    5y

    @Julie DeWolfe Arroyo

    Or you can just make any new lease month-to-month? This eviction moratorium is a nightmare for those who already had tenants in place during Covid. There’s plenty of legal ways around it for new tenants.

    1Reply
  • Gemma Collins
    Real Estate Agent · Savannah, GA · Member since 2021 · 31 posts · 21 votes
    5y

    @Matthew K. - appreciate that thank you, makes sense to just wait and see what happens and learn as much in the meantime.

    Also interesting to read the comment above out flipping distressed properties as opposed to rentals - but at the same time, I'm not sure this moratorium can last forever and I'm sure, if anything, the rental market will only get hotter as people are unable to purchase....

    Thanks for the advice!

    0Reply
  • Gary L Wallman
    Rental Property Investor · Beavercreek OH · Member since 2018 · 422 posts · 970 votes
    5y
    Originally posted by @Jonathan R McLaughlin:

    @gary 

    @Gary L Wallman district judges don't make law or precedent. 

     Jonathan,

    With all due respect, you're missing a few points. First, all judicial rulings are precedent. That's what precedent means. A judge is following the previous court's guidance. Second, that doesn't apply here.

    A quick civics refresher course for you. The legislative branch makes laws, the executive enforces those laws and the judicial determines if those laws are constitutional, ergo lawful.

    The CDC order was issued as a result of a Presidential Executive Order, therefore it is not law. Even if it was, the federal judge ruled it unconstitutional. This means it is an unlawful order and may not be enforced.

    @Matthew K.

    A court ruling an order unconstitutional make the law void. It does not have to be appealed to an appellate court (ie. District Court of Appeals or SCOTUS) to be reaffirmed. If the Government appeals the judges decision he may be adjoined from the appellate court from having his order taking effect until the matter is heard. It is not automatic and there is no guaranty SCOTUS will even hear the case.


    2Reply
  • Jeffery Wilen
    Rental Property Investor · Vancouver, WA · Member since 2017 · 181 posts · 115 votes
    5y

    We’ll see where we stand today. I’ve got an eviction hearing for non-payment in 2 hrs. Have not heard if it’s still proceeding, so I’ll be there.

    We also another hearing for lease violation in 2 weeks, filed before we could file non-payment suits.

    Use the lease documents from a lawyer or on BP. Pretty sure I could evict any of my tenants according to those. Everyone violates some clause in the lease.

    1Reply
  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    5y

    @Mike Dymski  Amen! I'm all ears as well. It's out of hand at this point and negatively affects everyone. 

    1Reply
  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    @Francois G. What legal ways are there around the moratorium?  If you sign someone up for a month to month lease, give them notice to leave because they stopped paying or damaged the property and they don't leave, what options do you have?  You have to evict them at that point and are right back where we all started, sitting on our hands while tenants live for free at someone else's expense. 

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  • Samantha Prince
    Rental Property Investor · Salt Lake City, UT · Member since 2021 · 11 posts · 7 votes
    5y

    Since when did the CDC become in charge of evictions? Why are they allowed to have this much nationwide power?

    3Reply
  • Alan Grobmeier
    Rental Property Investor · Phoenix, AZ · Member since 2013 · 919 posts · 911 votes
    5y

    What about eviction attorneys in those big blue states?  They were frothing at the mouth just a couple of days ago.  Now they are unemployed AGAIN.  What are they going to do?  Yikes!  LOL.

    0Reply
  • Francois G.
    Real Estate Agent · New York, NY · Member since 2020 · 62 posts · 72 votes
    5y
    Originally posted by @Matthew Irish-Jones:

    @Francois G. What legal ways are there around the moratorium?  If you sign someone up for a month to month lease, give them notice to leave because they stopped paying or damaged the property and they don't leave, what options do you have?  You have to evict them at that point and are right back where we all started, sitting on our hands while tenants live for free at someone else's expense. 

    A month-to-month lease doesn't allow non-payment to happen, which is what the moratorium is targeted at. A tenant can break a lease many different ways (it's your responsibility to detail everything in the lease) other than non-payment. In your lease I would hope intentionally damaging your property would be grounds for termination. You don't think there has been any evictions since the pandemic started? 

    I see you're also from NY, I won't speak on upstate but in the city there are many who are disgustingly abusing the moratorium. I'm not denying it's a mess but the original point I was making is that it shouldn't deter someone from investing in rentals. If you properly screen your tenants, thoroughly explain what constitutes breaking the lease, stay on top of your local laws, and keep up with your duties as a landlord, you will do just fine with or without a moratorium in place.

    1Reply
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