The Eviction Moratorium Is Ending On September 1st – What Comes Next?

The Eviction Moratorium Is Ending On September 1st – What Comes Next?

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September 1st is a few days away and with the start of September will also come to the end of the eviction moratorium that’s been in place since the start of the Pandemic.

At the beginning of August, the eviction moratorium was expected to end on September 30th but after recent action by Chief Justice Tani Cantil-Sakauye, and the judicial council of California, the eviction ban officially ends at midnight on September 1st.

“The judicial branch cannot usurp the responsibility of the other two branches on a long-term basis to deal with the myriad impacts of the pandemic. The judicial branch must resolve disputes under the law and not legislate. I urge our sister branches to act expeditiously to resolve this looming crisis.” – Chief Justice Tani Cantil-Sakauye,

Following the actions of the judicial council, lawmakers have been busy trying to pass a solution that would stop evictions from occurring without a gap in the current protections that have shielded tenants across California from evictions.

Assemblyman David Chiu, the architect of statewide rent control in California is trying to pass AB 1436, a bill that would ban evictions for unpaid rent during the Pandemic. This bill would also potentially keep tenants in their rental properties rent-free until April 1st, 2021 if the emergency order isn’t lifted before then.

Chiu’s bill currently has the support of nine mayors across California including San Francisco’s London Breed, but unless it’s passed, evictions are going to move forward.

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Getting Ready For The Most Important September Ever

Some people have been unsympathetic to the plight of landlords in California, even recently suggesting that they should stop whining about the eviction ban in California. Why? Landlords in California have been enjoying record profits over the last 10 years and with most landlords receiving at least a portion of their rents during the Pandemic, some tenant advocate groups think landlords can just absorb the losses.

The reality is that if foreclosures are allowed to move forward in California, this won’t just mean that corporate investors will snap up properties owned by smaller investors, foreclosed properties could sit vacant for months, like they did follow the great recession, converted into private homes or converted into short-term rentals.

Regardless of what happens, September 2020 will go down as being the most important September ever as both landlords and tenants have everything on the line.

Can solutions be created that will be good for both landlords and tenants at the same time? Right now, that’s anyone’s guess. As we get closer to September 1st, it’s more likely than ever before that unless a last-minute solution is approved, we could face an eviction and foreclosure wave at the same time.

Contact MW Real Estate Group

For more information on the eviction crisis in California, or to speak with us about our property management services, contact us today by calling (213) 927-2117 or click here to connect with us online.

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