Landlords Bailing, Selling off Properties

15 Replies

There is an article in Yahoo news, yes I know not the best news source, but I thought this one was interesting.  Here is a quote:



Landlords who own between one and five single-family rentals make up 88% of the almost 15 million single-family rentals across the country. In light of the eviction bans put into place at the start of the pandemic, 11% of these landlords have sold off at least one property in their portfolios, and 12% have sold off their real estate holdings in their entirety.

Here is a link to the story:  

Federal Eviction Ban Forced 12% of Landlords Out of Business | Millionacres

If that is accurate and 12% of the mom and pop folks sold off all their properties and 11% sold off at least one property, there will be an even bigger rental shortage.

Did anyone on here sell off during the eviction hold?

Yes; landlords are selling in my area.  And many of these are small time landlords.  It's not so much because of the eviction moratorium (my county is still doing these) but rather because of the increased price of housing.

I'm starting to downsize my numbers but more so because of my age and the fact I lost my partner to cancer several years ago and management alone isn't so much fun anymore.

Gail

While some may have sold at least one property, I'd bet a lot has to do with the increase in the housing prices.  I didn't sell any, but I did buy one.

With numbers, media will spin them.  There was a CBC (Canadian news) article about a -5.7% drop in sales.  Yet only one province (a smaller one with less expensive homes) had a larger increase.  When you looked at the actual numbers for all the provinces and territories, it was almost flat.  So take whatever you read with a grain of salt.

I haven't sold any and have acquired 2 new ones.

I am toying with the idea of selling one I just fixed up but not sure what I'd do with the cash and already have a bunch of cash in the bank making no money.

I am curious where they get their stats from. It's very hard to trust any 'news' source any more. 

I was certainly considering flogging off a couple of places, and I am still contemplating selling at least one of them. I did have a very attractive contract on my 4 plex, but I backed out because I didn't want to lose the income stream. Then what when I sell? I have to buy in the same hot market via 1031 exchange, or cash out and give a huge chunk to India for gender studies...I mean the IRS. 

And many of those mom and pop landlords aren't cut out to be landlords. Witness all the people on BP who reflexively want to let tenants out of their leases when any personal crisis occurs, or immediately want to offer "cash for keys" to end someones lease. 

@Lynnette E. Sounds about right, I mean if I had been accumulating properties as a “hobby” land lord, probably never really treating it like a bisuiness, most likely probably didn’t have proper reserves, or cap ex put away…moratorium comes in and they just don’t want to or can’t deal with it so they sell.

Originally posted by @Lynnette E. :

There is an article in Yahoo news, yes I know not the best news source, but I thought this one was interesting.  Here is a quote:



Landlords who own between one and five single-family rentals make up 88% of the almost 15 million single-family rentals across the country. In light of the eviction bans put into place at the start of the pandemic, 11% of these landlords have sold off at least one property in their portfolios, and 12% have sold off their real estate holdings in their entirety.

Here is a link to the story:  

Federal Eviction Ban Forced 12% of Landlords Out of Business | Millionacres

If that is accurate and 12% of the mom and pop folks sold off all their properties and 11% sold off at least one property, there will be an even bigger rental shortage.

Did anyone on here sell off during the eviction hold?

 I am not sure where they gathered these statistics from, but it seems hard to accurately determine on a national basis. Unfortunately news reporting has degraded and writers no longer cite sources, as is the case with this author. 

I can say in general I believe there are landlord cashing out. I recently had a vacancy and several interested people gave reason for moving as, "landlord selling home". It was more than normal, which makes sense given inflated home prices. Many people get into real estate with some romanticized idea of how it will make them rich. They quickly realize that it is work and there is risk. Major expenses can destroy cash flow in the short term. When presented with the option to cash out $50K, $100K or more profit, people are jumping at the opportunity. 

I have even given the advice of selling to many people. Even long haul landlords should use this market as an opportunity to sell off the dogs in their portfolio. Of course, even as people exit, more are acquiring and entering the rental market. This is a good thing, because the new landlords are demanding higher rent. 

I've had some folks I know from other facebook sites call and ask if I have anything for rent as their landlord is now selling the property they are in.  While this has become a common "excuse" for some who are being kicked out for other reasons the folks I know personally appear to be more trustworthy.   Sometimes their landlords are older and just tired of the business; some want to move elsewhere and not have to handle the properties long distance.   Some (I suspect) are just tired of dealing with the type of renters who focus only "private" landlords (the "looking for a private landlord" postings are an instant red flag for me).  

My county doesn't seem to have difficulty with evictions (although they are somewhat slower) but, from what I read on my landlord forums a good many landlords who haven't received rent for months....and reside in states where courts seem to be refusing to hear ALL requests for evictions.....are simply giving up and getting out.

I don’t know any landlords selling because they’re tired of eviction moratorium. Most selling because market was hot and capital gain taxes are still low. 
I tried to sell one unit because of HOA is not good (no reserves, no management etc) but a tenant from next door wanted to rent and I increased rent by 21%….hard to resist. Her landlord wants to sell for the same reason - financial unstable HOA.

These landlords who are selling now - taking advantage of the market and dumping what they consider worst of their portfolio. These are not owners of less the 5 units though - mostly 20-30, some 100+ 

@Lynnette E.

No way!

I have two vacant as I take my time remodeling, just to be there for those renters that have a job, but can't pay past bills.

I welcome the landlords hiding a couple 2 or 4 family's properties that just want out!

Let me help them out! I am all about helping people that are just done!

Good luck!

I wouldn't be surprised, just like we're seeing a mass migration out of major cities and into more rural areas. Is it due to the eviction moratorium? Possibly. But there are also people just looking to cash out in a hot market, getting out of a heavily taxed or regulated state, or simply because they're old and want to slow down.

@Lynnette E.

This data would be interesting to see overlaid with price increases and strictness of enforcement of the moratorium on a county level. Since eviction enforcement tend to follow county jurisdiction.

I can help but think locations that have been least accommodating to LL’s will have the highest rental property turn over rates.

There's a term in the cryptocurrency world called "FUD" or "fear, uncertainty, denial". News outlets and influencers spread FUD to get small time coin holders to sell their holdings out of fear so that the bigger, stronger hands can buy them up at a discount.

This article smells like FUD to me.