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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThe other side of the rental moratorium
Last edited Mon Aug 2, 2021, 09:33 AM - Edit history (1)
I live in NJ in a rental unit. I've been fortunate to have been employed during the Pandemic and Moratorium. I paid my rent on time in full every month.
OTOH, since March of last year, the unit under me has not paid anything despite the residents also being employed. They just used the Pandemic as an excuse not to pay rent. (I'm certain of these facts as I personally know them.)
Not only is our landlord getting stiffed $1,300 (cheap rent by comparison to other local units) per month for almost 18 months, but NJ has extended the Moratorium to January, 2022. And to boot, our landlord received a call from a second prospective landlord in another city as to the reliability of the people downstairs to pay rent. IOW, they plan to move out without paying back any of the rent owed, despite the mandates that their rent is still expected to be paid at a later date. And without a forwarding address. Plus he won't be able to track them down as they never returned the Lease to him.
As of today, they owe $22,000+ to our landlord. His mortgage and municipal tax obligations are not in abeyance like rent for the Moratorium. He is struggling to hold onto the property. This is not a big rental house, only four modest units. He still has to pay for maintenance and repairs. (If our roof needed repair or replacement, he wouldn't have the money to pay the contractors.)
AND the LL is paying for their water usage for 3-4 people who are living free in his rental unit.
My question is how can landlords expect to be paid in full (with or without interest) when the universal tabs will be in excess of $25,000?
Disclaimer: I am not a relative or friend of the landlord. Just another tenant.
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brooklynite
(96,882 posts)Between the local regulations and the Court system, it is extremely difficult to evict tenants for non-payment (or any other reason), even under normal conditions. Effectively the only way to get people to leave a rental unit is to pay them.
I am not worried about an abrupt increase in homelessness.
Ohio Joe
(21,896 posts)Also... Simply not leaving a forwarding address does not make one vanish into thin air. People who owe debts are pretty easily found.
no_hypocrisy
(54,122 posts)Their vehicles are registered in New York State, to an address where they don't live. And LL doesn't have their Social Security numbers; this will make it hard to track them down via employment.
Ohio Joe
(21,896 posts)Like the article says, the ground work can be laid right away even if no move will/can be made to actually evict. The landlord does not sound like s/he is keeping up with how this is working, not a good plan. Sounds like they are obviously doing things in bad faith for a long time, he should have been on it when it started. I suggest you tell them to... Get on it now.
JI7
(93,111 posts)Ohio Joe
(21,896 posts)Not a complete solution for landlords but neither is the current one for renters yet... Far better then if nothing had been done and there was simply not a lot of time before crisis would have happened.
I blame repugs for being nothing but murderous obstructionists since the pandemic began.... Well... Before that as well.
Ohio Joe
(21,896 posts)OK... I have zero doubt there are people who are taking advantage of the system... It is absolutely happening. In fact, pick any social system... SS, unemployment, food stamps, whatever, you name it... And there are people who are taking advantage. That is not an argument in my mind to get rid of any of them... It is not an argument to make them harder... It is not an argument to blame the vast majority who honestly need the program for the waste that will occur.... And I am not accusing you of being on that band wagon, I get it, you see people taking advantage of the system and don't like it, nobody does.
This system in particular was set up quickly because it was needed quickly and it still very much is needed. I feel we need to be very cautious about taking a position that will harm a great many people because of the few that take advantage.
Just my thought on the matter.
Demsrule86
(71,465 posts)Ohio Joe
(21,896 posts)He let people move in (and they seem to have been there a long time now, more then a year) without ever getting the lease back from them? Their car is registered in another state? Zero information on them, which means he never ran a credit or background check of any kind... He is not renting a room in his house, it's a four unit building... Who does that?
I feel bad for the guy but the fact is the rent moratorium is not the basis of his problems.
Yeah, I hear you. As a landlord of a one bedroom apartment in DC I can’t imagine a situation in which I did not have a signed lease and a credit/background check before the tenant moved in.
Liberal In Texas
(15,932 posts)appropriate furniture and things like TVs.
I know this from anecdotal stories and I knew a woman who did this in her job.
Croney
(4,988 posts)We are landlords with just one tenant, who has kept his job and never been late with rent. If he'd been unable to pay this last year, we would have carried him as required, but it would have been a financial burden.
I don't see how tenants could ever pay a year's back rent; once they fall behind, it snowballs. It's not fair to landlords, but these are extraordinary times.
WhiskeyGrinder
(26,155 posts)You can still file an eviction notice with the court for nonpayment, even during the moratorium.
Demsrule86
(71,465 posts)landlord should have been paid via Covid relief funds.
WhiskeyGrinder
(26,155 posts)
ibegurpard
(17,072 posts)For not being a friend or connection of the landlord you sure know a lot about the situation.
I live in my own house for which i psy a mortgage. I know several of my neighbors fairly well but even with this pandemic have never discussed those kind of details. I lived in apartments for years and barely even knew any of my fellow tenants by sight. How is it that you're so familiar with their financial situation?
no_hypocrisy
(54,122 posts)until this happened, I considered them to be respectable and reliable.
I feel guilty that I recommended them as tenants. I just had no idea.
Marrah_Goodman
(1,587 posts)Also lived in some places that I knew no one there.
captain queeg
(11,780 posts)Ones that could have afforded it, or at least make partial payments. I don’t think things are going to change overnight but I have no doubt many will be unable to pay back rent. It’s going to take awhile to play out. When I left my last rental and was talking to my landlord she kept telling me how grateful she was I always paid rent on time. I finally asked her is that so exceptional? She said yes. Kind of surprised me.
North Shore Chicago
(4,208 posts)who have truly been unable to pay their rent during the pandemic are getting judged by the bad apples (like your neighbor.)
Cheaters and liars make life difficult for the good folks who have lost much to Covid.
dclarston13
(439 posts)You guys are focusing on the minutiae of his facts to try to disprove the point he makes. The point he makes is irrespective of his personal statements. There will be many landlords that will get stiffed, some apartments and homes will go into disrepair, and correspondingly the value of that property and probably those around it will drop. The counties and cities will be slow to reduce the value of these properties and the tax bill will still need to be paid.....then the snowball rolls down the hill.
Sibelius Fan
(24,783 posts)but it’s hard as I’m on unemployment (age 66 - good luck getting a job) and my wife works part time.
So I looked into CA’s rent assistance program. We qualify based on income (or lack thereof), monthly rent and size of household. But to qualify for the assistance we need to be in arrears on our rent and been served an eviction notice.
Huh? Sounds like a stupid, stressful requirement.
haele
(15,019 posts)She talked to her property manager up front about how her private business was affected by COVID when she first came up short, and they agreed to send a 3 day notice on the 5th instead of giving her the typical up to the 20th with late fee work-around she had on her lease so she could apply and get the first emergency payment. Once she was on the program, it worked fine for everyone until things opened up again.
She was lucky she was a good long term lease tenet and the owner didn't owe mortgage on the house so she was able to have the lease modification. But it was touch and go for a while, and very few people are as lucky as she was.
Haele
Sibelius Fan
(24,783 posts)We have a great landlord who has been open that they want to keep us as a tenant as long as possible. I’m sure they’d work with us.
Oh, yeah: we live in SoCal, where our rent is $3300 a month. We’re lucky - the going rate for a 4-bdrm house around here is $3600-3800 a month!
Response to no_hypocrisy (Original post)
Post removed
marie999
(3,334 posts)then it should send the rent payments monthly to the landlords. The government should consider those payments loans to the renters payable according to the ability to pay.
GoodRaisin
(10,694 posts)Common sense solution. If necessary take the money out of Social Security when the time comes. It is pure nonsense to transfer the rent burden from the renter to the landlord. Accomplishes nothing except to delay the eviction and ruin the landlord financially in the process.
Wingus Dingus
(9,173 posts)can be allowed to happen. To lose 25000 bucks in rental income because of deadbeats, for a small landlord, is unacceptable.
WhiteTara
(31,154 posts)THey should apply.
marie999
(3,334 posts)WhiteTara
(31,154 posts)I didn't know if the link would work, so I'm posting most of the bulletin.
State and local programs are distributing billions of dollars in rental assistance to help renters stay housed during the pandemic. Rental assistance helps renters and landlords make ends meet.
Couple looking at a computer
If you’re a renter having trouble paying your rent, utilities, or other housing costs – or if you’re a landlord trying to stay afloat with tenants in this situation – help may be available. State and local programs are taking applications from renters and landlords to distribute money from the U.S. Department of Treasury’s Emergency Rental Assistance (ERA) program in their own communities.
If you’re a landlord, you may think of rental assistance as help for renters. But right now, most federal emergency rental assistance programs accept applications from landlords. Where renters can apply, they often need your help to complete the process and make payments to you.
Questions and answers about federal rental assistance
How do I apply for emergency rental assistance?
What does emergency rental assistance cover?
Am I eligible for emergency rental assistance?
How can I show that I am eligible?
How are rental assistance payments made?
Special living situations
How do I apply for emergency rental assistance?
You apply through your local emergency rental assistance (ERA) program. Each local program has some flexibility in how they set up policies and procedures to suit the needs of their local community. For example, in some areas, you can apply for rental assistance yourself. In other areas, landlords need to submit an application first.
Find a rental assistance program for your state, tribe, or local area
Use the search bar to find programs in your area. If you cannot find any program in your area, call 2-1-1 or your local housing authority for assistance.
What does emergency rental assistance cover?
The federal ERA Program allows local programs to cover rent, utilities, and home energy costs. This includes electricity, gas, fuel oil, water and sewer, and trash removal. If your landlord normally pays for utilities or home energy costs, these are counted as part of your rent.
Rental assistance may also cover:
Reasonable late fees (if not included in your rental or utility debt)
Internet service to your home
Moving expenses and other rental-related fees (such as security deposits, application fees, or screening fees) for families who have to move
Some programs may also provide housing counseling, case management, legal representation, and other housing stability services.
Talk to your local program to find out how they can help
Talk to your local program to find out how they can help
The federal ERA Program allows local programs to help with moving expenses, security deposits, rental applications or screening fees. Check with your local program to find out if they’re using this flexibility
.
The federal ERA Program allows local programs to receive up to 18 months of help with rent, including overdue rent, back to March 13, 2020, if the money is available.
If you have overdue rent, the money must go toward rent that you owe, first. Local programs may be able to help with future rent. In addition, you may get help with your future rent payments, up to 3 months at a time. But this depends on your local program.
Ask your local program about the total amount of help available to you.
Yes, your local program may offer help with utility or energy costs alone. This includes help paying for future utility or energy bills, even if you owe money for existing or overdue bills.
Utilities and home energy costs include electricity, gas, water and sewer, trash removal, and fuel oil. If your landlord is responsible for paying utilities and home energy costs, these will be treated as rent.
Local programs are allowed to cover moving expenses, security deposits, rental application or screening fees, and motel or hotel bills for families who have to move out of their homes.
Local programs are also allowed to use some emergency rental assistance funds to help you with other expenses related to your housing, such as reasonable late fees, as well as costs for internet service that allows you to engage in distance learning, telework, telemedicine, and getting government services. For providers to cover it, you must provide a bill, invoice, or other evidence that shows you paid for the service.
Check with your local program to find out how they can help
Yes, but only for rent and utility bills charged on or after March 13, 2020, when a national state of emergency was declared.
You don’t have to be behind on rent to get assistance. Some programs offer help with future rent. However, if you have overdue rent, the money you get must go toward rent that you owe before it can be used for future rent.
Yes. If your household is eligible for emergency rental assistance, local programs may cover the cost of a hotel or motel room if:
You had to move out of your home and you don’t have a permanent home elsewhere
You can provide hotel or motel bills or other evidence of your stay, and
Your local program follows the rules for this emergency rental assistance
If emergency rental assistance is not available to help cover these costs, you can also ask for help under the HUD Emergency Solutions Grant program. Visit Benefits.gov
for more information about Emergency Solutions Grants. You may also be able to find help at DisasterAssistance.gov
.
Am I eligible for emergency rental assistance?
To be eligible for help covering your rent, you must have an agreement to pay rent for your home or mobile home lot. You don’t necessarily need to have a signed lease, and your home could be an apartment, house, mobile home, or other place.
These three statements also need to be true:
At least one member of your household has:
Qualified for unemployment or should qualify
Lost income
Owed large expenses, OR
Had other financial hardships
Your household income is below a certain amount, based on where you live
At least one member of your household is experiencing housing instability, which means they are at risk of becoming homeless or would have trouble finding a stable place to live
Federal rules allow local rental assistance programs to cover rent or utilities for low-income families. This generally includes renter households with income up to 80% of the Area Median Income (AMI), with adjustments for family size. Use this Area Median Income Lookup Tool
from Fannie Mae to find the AMI in your area.
Local emergency rental assistance programs must prioritize applications for renter households with income below 50% of the AMI and households with a worker who has been unemployed for at least 90 days before applying. This means that your local program can set lower income limits to make sure the neediest households get help first. Your local program should let you know how their system for prioritizing applications works.
Money from the federal ERA Program is for renters only. But money from the Homeowner Assistance Fund created under the American Rescue Plan Act may also be available. If you’re experiencing hardship as a homeowner, visit our Help for homeowners page to learn about your options.
How can I show that I am eligible?
Eligibility is based on a renter household’s financial situation and housing needs.
When you apply for emergency rental help, you will be asked to show that your income is eligible and that you’re experiencing housing instability. If you’re a landlord, eligibility is based on your tenant’s household needs, and you’ll be asked to show that your tenant’s household is eligible for assistance.
You must sign a written statement that the information in your application is correct and complete, and that you will use the emergency rental assistance for the costs it is meant to cover.
ocal programs have different requirements. They may ask you for a written statement. Or they can ask you to show your income with other documents (for example, unemployment benefits documents, pay stubs, tax documents, a statement from an employer, etc.).
Check with your local program for details
If it’s hard for you to show income or job loss, or if you have a special situation, local programs may let you write out your own statement about your income.
If your household has no income, or if your employer’s offices have closed, it may be difficult to prove your household income.
If you have a disability, don’t have access to technology, or have other special needs, a local program may be flexible about the proof they require.
If they do rely on your written statement, the program you apply to needs to review your household income again every three months to make sure you remain eligible.
Local programs might also rely on a caseworker or other professional who knows about your situation to certify that your income qualifies for emergency rental assistance.
Programs have to make sure they are complying with their own eligibility policies and procedures.
They must also have reasonable procedures in place to prevent fraud.
To show housing instability, you may need to sign a written statement. You might also be asked to show:
A past due utility or rent bill or eviction notice
Proof that you live in unsafe or unhealthy living conditions, or
Other proof that the program asks you for
Programs can make their own rules for determining if you’re living in unsafe or unhealthy conditions and what proof to accept. Talk to your local program to find out more.
When you apply for emergency rental help, be ready to show an agreement signed by you and your landlord that shows where you live and your rental payment amount.
If you don’t have a signed rental agreement or lease, local programs may accept proof of your address and a written statement about your rent, such as:
Proof that you paid utilities for your home or apartment unit (like a water bill)
A statement from your landlord, or
Other reasonable proof as requested
You may also be able to show your rental payment amount with:
Bank statements
Check stubs
Other paperwork that shows regular rent payments, or
Other reasonable proof as requested
If you give a written statement, local programs may require you to certify that you did not receive – and don’t expect to get – help from a different source to cover the same rental costs. For instance, if your rent is subsidized by a federal agency like the Department of Housing and Urban Development (HUD), you can’t get help from your local program to cover the federally subsidized portion of your rent. But you can get help to cover the part of the rent that you are responsible for.
Local programs have different requirements, so check with your local program for details.
If you apply for help with utilities, be ready to show a bill, invoice, or proof of payment to the utility company or home energy service provider. Rental assistance can’t be used to cover any utilities and home energy costs that your landlord normally pays for.
Will my local program send the rental assistance to me or to my landlord or utility provider?
It depends on how your local program works.
In some cases, the program may contact your landlord or utility provider and ask them to accept emergency rental assistance to pay off what you owe. If they do not agree, or if they do not respond within seven days (or within five days, if the program contacts your landlord by phone, text, or e-mail), your local program may be able to give the money to you. Then you must use the money to pay the landlord or utility yourself.
In other cases, your local program might give you the money right away, without first contacting your landlord. Either way, you must then use the money to pay what you owe.
Check with your local program for details
Starting May 7, 2021, landlords who accept direct payments of future rent are not allowed to evict you for not paying rent during the period covered by the rental assistance. When programs make direct payments to landlords to cover back rent, guidance strongly encourages them to prohibit eviction for 30 to 90 days after the period covered by rental assistance.
Special living situations
Find out if emergency rental assistance applies to your special situation.
The questions and answers above are based on the Department of the Treasury’s revised Frequently Asked Questions on emergency rent
Amishman
(5,911 posts)And the tenant must be able to show a qualifying hardship, so a significant slice of renters are not willing to participate
róisín_dubh
(12,224 posts)The landlord screwed up mightily in that regard. He needs to get that sorted.
no_hypocrisy
(54,122 posts)They stalled and stalled and stalled.
Then they changed the lock to the front door, denying access to the LL.
And they knew that the LL was confused by the LL/T court process as they were ensconced. The LL also didn't have $ for a lawyer.
He tried to do self-representation to evict him, but then came the Moratorium.
róisín_dubh
(12,224 posts)Hopefully he informed the potential new landlord.
albacore
(2,743 posts)We pay 10% to a rental management agency.
They know all the laws and regs. And our state (WA) has given out millions in rental assistance.
They screen renters carefully and follow up on paperwork. (The most important part)
They know the eviction process, and we pay a small amount per year "eviction insurance", that will pay for any legal fees or eviction costs.
We told the rental management agency not to evict either of our renters during the Covid downturn, and they told us they have a contingency fund to help renters and landlords over the rough patches, and they hadn't evicted anybody during the pandemic.
10% ..... the peace of mind is well worth it.
albacore
(2,743 posts)..by Congress for rental relief. Only 12% of relief funds have been doled out.
Which states? You know the answer already, but there are some surprises. Some blue states have simply been overwhelmed by applications, and the money-spigot has choked on the number. States and local governments aren't capable of inventing and administering new programs. This is why the program MUST be run by the Federal government.
"Overall just 36 out of more than 400 states, counties and cities reporting data to the Treasury Department were able to spend half of the money allotted them by the end of June. Another 49 hadn’t spent any funds at all. That included New York state — recipient of $801 million in first-round funds — plus huge metropolitan governments, according to an analysis of Treasury data by The Post."
https://www.washingtonpost.com/business/2021/07/30/evictions-moratorium-expire-rental-assistance/
andym
(6,048 posts)Only for those who can't pay due to Covid. Isn't that correct? Let him file the paperwork and the tenants can then show they qualify or not.
Celerity
(53,524 posts)no_hypocrisy
(54,122 posts)
obamanut2012
(29,126 posts)The LL could have evicted them, and should have started eviction when they refused to return a signed lease. No lease, no contract to rent.
obamanut2012
(29,126 posts)I don't get why people think the moratorium means no eviction. I bought a condo three months or so ago, but my LL evicted lots of folks for non-payment, noise violations, and lease violations like someone living there off-lease, etc. "Just because Covid lolz" has literally never been a reason to not pay rent and to not be evicted.
And, the day they refused to return the lease he should have started lease proceedings. This is absolutely partly his fault.
JI7
(93,111 posts)
Politicub
(12,327 posts)You can’t fix the series of bad decisions by the landlord, though. That’s all on him. I suppose you could give him money, if you’re so inclined.
As a business person, the landlord should consider sunk costs. He probably won’t ever get the back rent, and needs to behave as a the business owner that he is.
I have a friend who has rental property, and it’s not something that runs itself. He uses a management company, though. The biggest benefit of the management company, imho, has been the screening of tenants.
JCMach1
(29,072 posts)If you know, you know