What You Need to Know About the Eviction Moratorium Ending
It’s been more than a year since the world first learned of COVID-19, and although the world is in a state of gradual recovery, the challenges seem to keep coming. As homeowners and tenants alike face unforeseen financial hardships, the real estate industry has struggled to navigate these unprecedented waters. Unless a change is made on the federal level, the eviction moratorium is set to expire over the coming summer.
As a rental property owner, you may have questions about how the moratorium end will impact the real estate industry, particularly landlords. In this post from Bill Buys Houses, we’re breaking down everything you need to know about the end of the eviction moratorium. Give us a call to learn how we buy houses and how we can help you sell a home fast!
Understanding the Eviction Moratorium
The federal eviction moratorium arose in response to the staggering amount of COVID-related financial hardships faced across the United States. As homeowners and renters alike were unable to pay rent and mortgage payments, a looming homelessness and housing crisis had to be averted.
In September 2020, the eviction moratorium was enacted, prohibiting landlords from forcing evictions resulting from the pandemic. This moratorium, recently extended through at least mid-summer, provides essential housing relief for millions of homeowners and renters alike. Nonetheless, for many landlords who depend on income from tenants to maintain their properties and pay bills, the moratorium has added to their financial hardships.
And when the moratorium finally expires, all of that back rent will be due.
When Does the Eviction Moratorium Apply?
If you own a rental property, it’s important to understand when the eviction moratorium applies and how it may affect your property, especially if your tenants are unable to pay.
For tenants to be considered for the moratorium, they must certify the following:
● Tenants have exhausted other possible government assistance avenues to cover rent.
● Tenants must have made less than $198,000 as joint filers or $99,000 individually; or tenants were not required to file taxes in 2019; or they received a government stimulus check.
● Tenants are unable to pay their full rent payment due to layoffs, loss of income, or unexpected medical costs.
● Tenants are at risk of homelessness if evicted or would be forced to share a close space if evicted.
Does the Moratorium Mean Tenants Won’t Pay?
Although there is plenty of confusion out there about what the moratorium means, it does not mean tenants are getting free rent forever. The order requires tenants to make the greatest available payment they’re able to after accounting for additional living expenses. And once they are financially able to pay their rent, tenants are legally responsible for their back rent.
Will the Moratorium Be Extended Again?
As the federal moratorium has been extended twice, many landlords and tenants may wonder if they can expect it to be extended once more. It is especially important to understand any future extensions and plan accordingly to protect your investments.
As the challenges of the pandemic are still causing financial hardships, housing experts believe the moratorium may indeed be further extended to help maintain economic stability. Whether or not your tenants have been able to keep up during the pandemic, making a plan for the moratorium’s eventual end will help you stay ahead of the curve.
Working With Your Tenants
The key to planning for the moratorium end begins with looking at your tenants and their pay record. Have your tenants kept up with rent throughout the pandemic? If so, consider letting you know how much you appreciate their regular rent payments to incentivize their continued stay in your property. Investing in property repairs and upgrades is one of the best ways to keep good tenants around.
If your tenants have only been able to partially pay, try to remember that the pandemic has been challenging to everyone and let them know you appreciate their efforts to pay. Take measures now to help them plan for back rent once the moratorium ends so their housing and your income remain secure.
Be sure to discuss any future concerns and consider reworking the lease agreement to help accommodate back rent. This will serve as a relief to your tenants while guaranteeing your income continues after the moratorium ends.
When Rental Income Stops
If your tenants are struggling to pay rent or unable to pay rent, be sure to check with your local government about possible support through the American Rescue Plan. Encourage your tenants to apply for rental assistance, which landlords can apply for with tenants’ consent. No matter what actions you take, remember that strong, transparent communication should be central to your approach.
If you’re concerned about maintaining your rental property during the economic recovery, it may be worth it to sell. In a challenging housing market, a guaranteed cash home buyer can serve as an economic lifeline for landlords and property investors. At Bill Buys Houses, we buy houses to help homeowners and investors move on fast.
What to Do When You Need to Sell Your House Fast
If the challenges of the past year have left you with an investment or rental property that is no longer working out, Bill Buys Houses can help you sell your house fast. We offer caring, personalized service to help investors sell their property quickly while getting the best possible deal. To sell your house fast, contact us online, or call and request an offer at 651-270-9191.