CDC Extends Eviction Moratorium
While the motivation for the CDC’s eviction moratorium is public health (reducing the spread of COVID-19 which could result from an increase in homelessness) it has a large financial impact for both renters and property owners/managers.
This post is a continuation of two previous posts on the eviction moratorium from the Nurture Boss blog:
- Eviction Moratorium: Everything You Need To Know
- UPDATED: Eviction Moratorium: Everything You Need To Know
What Does This Mean For Renters?
The eviction moratorium extends protection for renters from being evicted from their homes for not paying rent (among other things). COVID-19 has impacted millions of Americans, one of those impacts have been financially. Easing the burden of paying rent has helped many Americans keep their homes while they focus on recovering financially from the impacts of the Pandemic.
Unemployment sky rocketed at the start of the pandemic in March of 2020
While forgoing rent payments have helped many families survive month to month financially while seeking new forms of income, it has not relieved those families of the rent owed. Many Americans have racked up a rent bill they will never be able to repay. When the moratorium is lifted rent will be due, and paying back a years worth of rent will not be possible for most renters.
What Does This Mean For Property Owners/Managers?
Property owners, operators, and managers rely on rent collection to pay the people that work at those companies. Without reliable rent income from their properties, the jobs of their employees are put at risk. It’s important to note, the majority of rental properties are not owned by large investments banks or suites sitting in a skyscraper.
Individual owners and mom and pop operations own over 23 million units across the United States. The inability to collect rent will be a death blow to their business.
So What Should We Do?
Whether a renter or a landlord your opinion on the eviction moratorium may vary. Federal assistance for renters is one solution that would allow renters to keep their homes and landlords to collect rent. Organizations like the National Apartment Association are making every effort to help drive productive legislation through to the finish line. Read more about what they are doing here.