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That there are a number of reasons why a landlord should work with tenants unable to pay rent in full due to the pandemic?
- The governor’s eviction moratorium requires landlords to provide a “reasonable” payment plan to tenants unable to pay rent.
- Financial rescue efforts that were largely effective in keeping tenants in their homes, are ending.
- Nationally between 15 and 20% of tenants have been unable to pay residential rent. In some markets that number is as high as 59%.
- A tenant who hasn’t been able to pay rent in full thus far won’t suddenly have enough money to pay back past due rent when the moratorium is lifted.
- A wave of evictions would hurt landlords, too. Experts predict that nationally the vacancy rate will peak at 7%, and rents will drop by about 8%. As vacancies increase, days on market are likely to also increase and rents to decrease.
- Housing experts predict we may see as many as two million evictions in September alone – the amount the U.S. usually sees over an entire year.
If landlords and tenants can work together to negotiate a payment plan that the tenant can adhere to, it may be to the advantage of both.
We are here to help you and your clients with all aspects of the rental market. Please contact us for further assistance!
Nothing found herein should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law. You should not rely solely on this information. We encourage our clients to work with a lawyer experienced in commercial and/or residential real estate matters as they can be complicated and confusing.
