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.
@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.
Personally, I would wait. The tenant may decide to toe the line and pay up. Or maybe they keep piling more charges.
@Mary M. Would the housing authority go after them if there just not paying rent because of the eviction moratorium, I feel some are using as free pass on rent
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
Mary,
Looks like you are right and I misread. However you will notice that the state orders were issues prior to the federal orders and the local governments can extend moratoria past federal dates.
If it's due to "COVID" have them fill this out https://www.cdc.gov/coronaviru... after it has been filled you can seek damages up to 80% from the government covering the missed rents, but only while the tenant is living there. Once they leave this is no longer accessible.
Keep in mind this individual already signed a promise to pay lease and is not paying. Any legal document you would sign with such person is at your own risk. They obviously don't care about credit and reputation and would probably just skip town.
Hey guys! Invitation Homes is apparently the largest company of real estate rentals in the US and they had a record year last year which included successful evictions. What are they doing that we are not?
@Matthew K. - if you read that story closely, you'll see that Invitation filed over 500 evictions, but they said nothing about how many were successfully carried out. They did note that the vast majority of the evictions filed were worked out without having to remove the resident. So it's possible they've not done a single eviction throughout the moratorium.
However- Invitation is kicking butt. I suspect it's primarily driven by product type and geography. They rent single family homes. My single family rentals are outperforming multifamily dwellings right now(small sample size- I'm almost exclusively in multifam.) And I believe Invitation primarily invests in locations other than the Northeast(which had a pretty draconian shutdown in early 2020 compared to most of the country.)
@Michael Gansberg good ideas, but through reading other posts, it sounds like some people have been successful at evictions because of location and clauses that are not money. NYC is very tenant friendly, so I assume that you may be among those not allowed to do evictions.
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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.
Thank you, Jonathan! This confirmed my suspicion. Tough to think the end of federal bans could not be the end of missed rents for landlords...
@Nathan G., this topic has shown up on multiple threads.
Emergency Rental Assistance Program (ERAP) is a $25 Billion program administered by Dept of Treasury. Up to 15 months of rent and/or Up to $15K per household is payable directly to landlord. Assistance needs not be paid back by either tenant or landlord. Locally, each county administers ERAP, this link lists local ERAP by state. These local programs have just been or about to be stood up so search each locale ERAP for the latest. Tenant and optionally landlord fill out form to qualify eligibility.
Can we evict due to other things? Our tenant has put furniture on the front porch, hooked up a TV (fire hazard) and nailed shutters up to act as baby gates. Their acts violate our lease because of the damage and hazards... They've been told twice, stuff is still there. The other tenant called the city. I'm expecting a citation in the mail any day now... Can that be grounds for eviction?
Yes, the eviction moratorium specifically states you can still evict for other reasons. However, you need to check with your local courts because some courts are simply refusing to evict for any reason.
I just evicted a tenant in Illinois which is not easy as it’s very pro tenant. Per state law we had to serve the tenant with the form. Had to serve them three times throughout the process. Sheriff would not serve so we had to hire a process server. Illinois had a no eviction executive order until recently where you had to prove you were impacted by COVID. Lost 8 months of rent, but we got the unit back. Hang in there everyone. It can be done.
Yes, because of COVID we used an attorney. Yes we received a judgement as well, but we need to file other documents to enforce the judgement. We don’t expect to collect any of the judgement, but we can always hope. If they try to buy a car or home it will show up on there credit report. That’s probably the only way we will collect anything.