08 Jul California Eviction Moratorium Update – Governor Signs Order N-71-20 Extending Moratorium Until Sept 30th
July 2020 is here and the California Eviction Moratorium is stretching into its 4th month as the state continues to struggle with Covid-19.
With much of the state unemployed, or dealing with the economic fallout of Coronavirus, it was only a matter of time until Governor Gavin Newsom took steps to extend the eviction moratorium.
Although Doug Michie, a Ventura based lawyer, filed a lawsuit in May which forced the Governor’s statewide eviction moratorium to be rescinded, Governor Newsom filed executive order N-71-20, which makes it possible for local jurisdictions to stop evictions until September 30th, 2020.
The Real Cost Of The Eviction Moratorium
There’s no denying that Coronavirus caught California off guard, and the fallout from the Pandemic has been unexpected.
Sadly, even though the eviction moratorium has benefited tenants, the reality is that owners have been hit hard economically from it and they have to continue to find some way to survive unless they can successfully challenge the eviction moratorium in the courts.
More Landlords Across The State Are Challenging The Eviction Moratorium
The good news is that more landlords across the state are challenging eviction moratoriums, especially on the basis that they are harmful to smaller “mom and pop” landlords who have been unable to collect rent in months and have seen their incomes severely impacted.
If landlords continue to be unable to collect rent from their tenants, we could see more owners default across California. This would be catastrophic not only for California’s economy but for the rental market as a whole since a wave of defaults would potentially mean fewer affordable rentals and an even tighter rental market as a whole.
What Comes Next?
Summer 2020 is one of the most important summers ever because everything is literally on the line as both owners and tenants have real needs that have to be addressed immediately.
When you combine the current struggles in the rental market with economic uncertainty, Covid-19 restrictions, and an upcoming election, everyone will likely remember summer 2020 for years to come.
Contact MW Real Estate Group
At MW Real Estate Group, we specialize in managing multifamily properties in the Los Angeles area.
Our property management team is on top of what’s happening with the local rental market including changes with rental laws.
We save owners the time, money, and hassle of managing their multifamily properties themselves.
To learn more about the services that we can offer you, contact us today by calling (213) 927-2117 or click here to connect with us online.