21 Jul Eviction Moratorium – How Is It Affecting Landlords In Los Angeles?
It’s July 2020 and the eviction moratorium in California has been extended until September 30th, in the hopes that this will keep thousands of renters who are unable to pay their rents off the streets.
Sadly, even though much has been documented about the plight of renters in California in recent months, landlords in California have received little coverage from the media during the Covid-19 crisis.
The most common perception of landlords is that they are “in it for the money” and are able to make it through this crisis while tenants suffer economically.
The reality couldn’t be further from the truth. This is why in this article, we will talk about how Coronavirus is affecting landlords in California and what the future could look like if the eviction moratorium is extended once again past September 30th.
The Unseen Costs Of The Eviction Moratorium
There’s no denying that renters in Los Angeles, and across California, are faced with a once in a lifetime crisis that’s kept many people out of work and unable to pay their rent or expenses.
Even though renters have had a lot to deal with during the last four months, landlords have also been grappling with a rental market that’s been adversely affected by the virus.
Many landlords in California are smaller “mom and pop” landlords who heavily invested in rental properties across the state and every landlord who has a tenant that hasn’t paid their rent in four months due to the eviction moratorium is losing money every month.
Landlords And Tenants Are Struggling At The Same Time
What’s not talked about regarding landlords in California is that when a landlord isn’t able to collect rent, they still have to in many cases pay the mortgages on their properties each month including bills and other expenses.
With little to no money coming in for months, some landlords in California face possible default on their mortgages, and this presents an even bigger problem for the Golden States because it’s likely that we could see a twin wave of defaults and evictions coming at the same time.
What’s Going To Happen Next?
As California continues to struggle with getting the first wave of Coronavirus under control, we will likely see an even greater state of urgency to address the coming eviction crisis in California because continuing to extend the eviction ban is essentially stalling something that’s going to happen.
Lawmakers have floated a variety of ideas including a bill which could give tenants until 2034 to pay the back rent that they owe but the reality is that in California it’s extremely unlikely that most tenants could afford a plan like that when they have other bills and expenses that add to their high cost of living.
Until we reach September, the good news is that some landlords in Los Angeles, and across the State of California, have been able to collect all, or a portion of their tenant’s monthly rent over the last four months.
This has helped some landlords cover their mortgages and it could be one reason why a recent report showed that 82% of Southern Californians were able to pay their rents on time in June but with unemployment benefits expected to end for many, and no additional Federal aid on the horizon, the future doesn’t like bright for the California rental market.
Contact MW Real Estate Group
At MW Real Estate Group, we specialize in full-service property management including sourcing, acquiring, and managing multifamily investment properties in Los Angeles.
Our company saves landlords the time, money, and hassle of managing their investment properties themselves so that they can live life on their terms.
To learn more about the services we can offer you, contact us today by calling (213) 927-2117 or click here to connect with us online.