Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
I'm still seeing a lot of Landlords that don't realize the eviction moratorium includes Tenant requirements. If you have a tenant that is not paying due to the Eviction Moratorium, use this form to document the situation. If they are unwilling to complete the form, that can be used as evidence against them later on. The form includes resources for additional information or assistance.
I've been considering property investment for a couple of years now. I was ready to pull the trigger a year ago but then Covid hit and I feel like I've dodged a bit of a bullet with the ludicrous eviction moratoriums in place. Does it make sense to move forward now, or should I wait to see how the eviction bans (Fed & States) pan out moving into the summer?
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Wait, for longer than this Summer, for two reasons: First, as you say, you need to see how the eviction moratoria play out, and; Second, you want to see how the foreclosure moritoria play out.
The eviction front will put a lot of inventory on the market and rents will go down. That will give you a better idea of what you can charge for apartments and therefore what you can pay for a building. The foreclosure front will put inventory on the market as banks foreclosure. The two combined will put more inventory on the market as small scale landlords quit the business because they are fed up with being abused.
Use this time to investigate the areas and neighborhoods you want to be in, and to develop your policies and criteria for those neighborhoods. You will read a lot about people here insisting on WRITTEN screening criteria. That's nice, but investigate credit score cut offs, employment screens, pet/prison/income criteria, how to recognize necessity moves (probably stiffed the old landlord), etc. etc., and work up your own criteria, consistent with local laws. Work also on your financial models -- those will change depending on the neighborhoods you want to be in. Find examples of failed financial models and figure out why they failed. Find good models and figure out what made them good. That way, when inventory starts coming on the market you'll be able to buy at a good price properties that you know will work for you.
Finally, start small. It's important to start, not to get big quickly. Grow with experience.
Some places are not processing evictions no matter what. We're hit or miss here according to my local attorney -- it depends on the judge. But I know some places aren't hearing anything at all.
Some places are not processing evictions no matter what. We're hit or miss here according to my local attorney -- it depends on the judge. But I know some places aren't hearing anything at all.
Even in my conservative state, judges are hesitant. I was hired by a Landlord last year to sell an investment property. His renter moved in on January 1st and was unemployed at the time he occupied. He paid 1/3 of his first month's rent, then nothing else. By the time I got involved, he was nearly five months behind on rent and utilities, hadn't paid the deposit, and refused to communicate. I referred the Landlord to an attorney and she started the eviction process. The judge basically told her he wasn't comfortable evicting during COVID. Seriously? A judge is unwilling to hear a case even though all evidence demonstrates the individual did not meet the requirements outlined by the (illegal, unconstitutional, nonsensical) CDC Eviction Moratorium? It took five months for the attorney to get this guy out and not a dime was collected.
Thanks for sharing this with us @Nathan Gesner! How are you going about "sharing" this with tenants? In NC, our governor requires proof that we provided this via an affidavit. I have recently used certified mail and have not heard a peep from the 5 tenants it was sent too.
Has anyone had any success suing tenants for past due rent? I have a tenant that owes close to $30K in rent from 2020-2021 and no judge will evict him. No partial payments, no rental assistance, etc., he just claims he lost his job, sends over a CDC declaration 2x/month and the judges end it there. Nevada is a summary eviction state so in normal times we get them out within one month so the lost rent has never worth suing over. Thanks.
I've been considering property investment for a couple of years now. I was ready to pull the trigger a year ago but then Covid hit and I feel like I've dodged a bit of a bullet with the ludicrous eviction moratoriums in place. Does it make sense to move forward now, or should I wait to see how the eviction bans (Fed & States) pan out moving into the summer?
I've been considering property investment for a couple of years now. I was ready to pull the trigger a year ago but then Covid hit and I feel like I've dodged a bit of a bullet with the ludicrous eviction moratoriums in place. Does it make sense to move forward now, or should I wait to see how the eviction bans (Fed & States) pan out moving into the summer?
------------------------------------------------
Wait, for longer than this Summer, for two reasons: First, as you say, you need to see how the eviction moratoria play out, and; Second, you want to see how the foreclosure moritoria play out.
The eviction front will put a lot of inventory on the market and rents will go down. That will give you a better idea of what you can charge for apartments and therefore what you can pay for a building. The foreclosure front will put inventory on the market as banks foreclosure. The two combined will put more inventory on the market as small scale landlords quit the business because they are fed up with being abused.
Use this time to investigate the areas and neighborhoods you want to be in, and to develop your policies and criteria for those neighborhoods. You will read a lot about people here insisting on WRITTEN screening criteria. That's nice, but investigate credit score cut offs, employment screens, pet/prison/income criteria, how to recognize necessity moves (probably stiffed the old landlord), etc. etc., and work up your own criteria, consistent with local laws. Work also on your financial models -- those will change depending on the neighborhoods you want to be in. Find examples of failed financial models and figure out why they failed. Find good models and figure out what made them good. That way, when inventory starts coming on the market you'll be able to buy at a good price properties that you know will work for you.
Finally, start small. It's important to start, not to get big quickly. Grow with experience.
Has anyone had any success suing tenants for past due rent? I have a tenant that owes close to $30K in rent from 2020-2021 and no judge will evict him. No partial payments, no rental assistance, etc., he just claims he lost his job, sends over a CDC declaration 2x/month and the judges end it there. Nevada is a summary eviction state so in normal times we get them out within one month so the lost rent has never worth suing over. Thanks.
I've sued tenants and received a judgment. The harder part is actually collecting what they owe. Most of these renters could care less about their credit score. The bounce from job to job, live paycheck to paycheck. You can't get blood from a turnip.
I've been considering property investment for a couple of years now. I was ready to pull the trigger a year ago but then Covid hit and I feel like I've dodged a bit of a bullet with the ludicrous eviction moratoriums in place. Does it make sense to move forward now, or should I wait to see how the eviction bans (Fed & States) pan out moving into the summer?
"Buy when there's blood in the streets." Baron Rothschild
"Be fearful when other are greedy and greedy when others are fearful." Warren Buffet
The trick is to see the opportunities and be poised to strike. I hear people complaining the market is too hot to buy but there are always deals if you are willing to work for them. I have 13 properties, 33 units and 150 storage units. My latest acquisition cost 1/6th the price of all my other rentals, but it will net twice as much as all my other properties combined.
For those that have unpaying tenants, there is money available. Find your local housing authority and ask them how to apply. You can apply for 80% of unpaid rent and you need to forgive the other 20%. Pls do this while the tenant is occupying as once they move the LL is no longer eligible to get paid from the govt.
Also, pls be sure to check your local laws - covid laws are different in each state and possibly each city or county so be sure to check your local laws
I think that if a tenet wants to take advantage of you they have always been able to do it. If they don't mind having a harder time finding a place to live in the future, possibly garnished wages etc they can take you to the cleaners. I don't think any of these laws or rent control help people but I do think they keep some people who might have invested.
I would always advice someone to buy only properties that good people would live in and screen the hell out of anyone who you let in. I have 20-30 units and every year or two I have to throw money at a tenet to leave peacefully, "cash for keys." Once you let a dirtbag slip through and get in your place its on you. And you are not going to win because dirtbags have nothing to lose and you do.
Oregon’s had bans extended further than the federal bans almost the entire time. Our current ban on this state is I believe through September. It will likely get extended to December.
So to answer your questions some states will use their own bans. Cities and Counties as well.
@Nathan G..... Shouldn’t they be supplying us with this form and not the other way around? My tenant is a deadbeat and is taking advantage of the moratorium. Her lease expired in October 2020, her husband left at the end of the lease and thought she’d be leaving as well. He had the electricity turned off to get her out and she had it turned back on in her name so now she’s there racking up over $10,000 in rent charges which of course he’s also responsible for. She is simply staying because I can’t evict her. She told me to take her to court because she’ll make out in the long run.
@Carl Mathis........ exactly! The moratorium states that “Landlords can evict tenants that are creating safety or health hazards for other tenants, and those tenants who do not submit hardship declarations,” my tenants has not submitted a hardship declaration and I’m not providing her with one. She’s taking advantage of the moratorium and she’s benefitting greatly.
Oregon’s had bans extended further than the federal bans almost the entire time. Our current ban on this state is I believe through September. It will likely get extended to December.
So to answer your questions some states will use their own bans. Cities and Counties as well.
Do you have a source for this/ I am seeing June 30 as the end date
@Carl Mathis........ exactly! The moratorium states that “Landlords can evict tenants that are creating safety or health hazards for other tenants, and those tenants who do not submit hardship declarations,” my tenants has not submitted a hardship declaration and I’m not providing her with one. She’s taking advantage of the moratorium and she’s benefitting greatly.
If you want the govt rent funds, you must give the tenant the form. and, my guess is that is you dont do this you wont be able to take the tenant to court
Some places are not processing evictions no matter what. We're hit or miss here according to my local attorney -- it depends on the judge. But I know some places aren't hearing anything at all.
I'm currently on that boat, this government is hurting all landlords right now and I cannot continue moving forward with my investments because banks are not even willing to have a conversation if any of the properties are currently under forbearance. RRRGGHHH!!!!!
@Nathan G..... Shouldn’t they be supplying us with this form and not the other way around? My tenant is a deadbeat and is taking advantage of the moratorium. Her lease expired in October 2020, her husband left at the end of the lease and thought she’d be leaving as well. He had the electricity turned off to get her out and she had it turned back on in her name so now she’s there racking up over $10,000 in rent charges which of course he’s also responsible for. She is simply staying because I can’t evict her. She told me to take her to court because she’ll make out in the long run.
Yes, it's the tenant's responsibility to seek assistance. Your tenant obviously doesn't care.
I wish we could bring back public stocks and canings.
If you want the govt rent funds, you must give the tenant the form. and, my guess is that is you dont do this you wont be able to take the tenant to court
There's nothing in the moratorium that requires a Landlord to provide the form. The responsibility lies solely with the tenant for initiating assistance requests.
However, it would look much better to the courts if the Landlord could provide evidence the form was delivered to the renter. This prevents them from claiming they didn't know. The question is, how would you prove delivery?
@Nathan Gesner its totally locale driven where I am the landlord must provide the form to get the funding - LLs need to carefully check their local laws etc
@Nathan G.... I was thinking of hiring an Attorney for a money judgement for now and then evict once the ban is lifted but I’m not sure if it’s worth it to do anything now. The attorney would send notices and petitions and appear at the first court appearance but I’m wondering if I should just wait until the moratorium is lifted.🤔
And to answer your question about proof of service I would have it sent certified mail.