A very important protection for tenants created by the CARES Act, sadly, ended on July 25th. It is commonly referred to as the ‘eviction moratorium’ and this protection had applied to at least 25% of all the renters all over the nation wide and it had helped ensure that they wouldn’t; be evicted during the ongoing health crisis of the coronavirus.
Nowadays, this provision has finally expired and in some states, they have introduced eviction moratoriums. On top of all of this, the CARES Act that introduced $600 additional unemployment benefits had expired. As all of these critical programs have come to an end, many people fear that evictions are going to increase significantly.
The following are just some tips for landlords and tenants to navigate around housing situations based on this new landscape.
1. Know the Law In Your State
The federal moratorium’s eviction had only applied to the housing with federally backed mortgage loans and subsidized housing, It was later estimated that it will be covered 25% of all renters. While 25% is going to be a substantial amount, the federal law has left many states unprotected. States had come forward to fill in the gap, and they had to create their own state-wide eviction moratoriums.
With the moratorium ending in the short term, it is very important you become familiar with your state’s law. You also need to know whether your state has an ongoing moratorium. If you find out that it does, you will have to know when they will expire.
Every state will have to handle this differently. For example, in Virgina, the original moratorium will have to be extended, but will still officially expire later in June. The governor had then requested the local courts to continue the moratorium, and they had left it to their discretion. In Virginia, therefore, it doesn’t matter whether or not you are protected from evictions on the city and country’s policy in which you reside.
2. Be Aware of All the Changes in the Future
Congress is now in the midst of approving a 2nd stimulus bill. You will then stay aware of the negotiations and will be informed about the terms when the new law will take effect. While nobody knows for sure when each new bill will be included, it is also possible that you could extend each moratorium or even create new forms of housing protection.
3. Watch Out For Any Misleading Tactics
Even though they have the moratorium, some property owners have resorted to misleading tactics, which tends to confuse tenants about what their rights are and, therefore, leads to them leaving the property sooner than you would expect. One thing that you should keep in mind is that property owners are required to give at least a 30-day notice before sending through an eviction notice. This notice cannot be sent until the moratorium has ended.
Even though the moratorium may have ended on July 25, the tenant will at least have until late August before they will be legally allowed to be evicted. Property owners may try to deceptively threaten an earlier eviction, or may even attempt to send a notice before July 25.
Final Thoughts
Hopefully, after following these tips you will be able to grow your property management business into new locations or maximize its profits.
If you’re looking forward to trying out any of these tips in your rental property you can always delegate these tasks to your property manager or hire the right professionals for the task at hand. The only thing you will be responsible for is to offer your potential tenants more affordability, more personalization, and authenticity as opposed to worrying about your safety.
If you haven’t hired a property manager already, click here to learn more about our services and how an experienced property manager can share some of your burdens.
