Landlords are dealing with growing uncertainty. I don’t think it is the big operator that is or needs to be concerned, I think it is the little guy. The owner with just a few SF or MR units.
It looks like the eviction Mortarium is extended to March 31 2021. I recently read an article in the New York Times it said to “give the tenants more cash.” Here is the challenge I see with that process. Giving the cash to the tenants they don’t have to pay rent because they won’t get evicted the landlord is still not being paid. Why not give the stimulus funds to the landlord so they can pay their bills?
If the owner/operator is not getting rent how are they supposed to pay their mortgages? Most owners in urban areas have hefty water and sewer bill to pay. Who covers that? What about Insurance, common area expenses, landscaping and maintenance?
Here is an interesting fact. Landlords have already filled 150,000 eviction petitions during the pandemic in 27 MSA’s. Most have lost and are sill in a tough situation. In Texas alone the average eviction petition is $10,000. How many of these can a owner/operator handle?
Leave a comment below on what you think the next 180 days will be like for these owner/operators?