Are You Ready For When The Eviction Moratorium Ends

Written by Posted On Sunday, 18 April 2021 22:23

Just like a dragon spitting fire aimlessly, the COVID-19 has struck almost every industry bringing everyone down on their knees.

Real estate has been hugely affected by the coronavirus pandemic with many facing financial hardship.

As a landlord or property owner, you’ve tried your best to keep afloat the year before and things don’t seem to get any better for you.

The government, on the other hand, isn’t doing you any favor by extending the eviction moratorium notice.


When Does Eviction Moratorium End?

It was due on March 31 but extended to June 30, 2021. Should we expect more eviction moratoriums?

It’s fair to say adequate planning really needs to take shape as early as now to cushion you from losing further during the COVID-19 period. I’m certain you’ve come across the phrase, “If you fail to plan, then you’re planning to fail.”

Between now and June the tenant is protected from eviction by the moratorium issued by the government.

As a property manager, it’s your obligation to know what measures to take to protect the investment.

It came with no surprise the CDC issuing the extension of the eviction moratorium notice which was due March 31.

It was highly anticipated since the fight against COVID-19 is yet to stabilize and also, there’s a high chance the eviction moratorium is likely to be extended the same way after March 31.

“Extending the moratorium is clearly necessary and appropriate," said National Low Income Housing Coalition CEO Diana Yentel on Twitter.

However, despite the federal moratorium some landlords have managed to defy the odds and stay sustainable and with their occupants paying all their rent dues.

Whether or not you’re part of those on the safer side or nonpayment of rent occupants, planning for the end of eviction moratorium notice is important and necessary.

The planning will be based on the performance of the occupants and here’s how to look at it.


Those Who Defy Odds and Manage to Pay Rent Dues

For this group of people, one way or another as a landlord you should be thankful for their efforts.

Not everyone has the edge of pulling through in such situations while others are facing nonpayment of rent and getting relief from a federal moratorium.

You need to find a way to show your appreciation and let them know their effort isn’t taken for granted.

You cannot manage to lose any of such clients, they are dream occupants by many other landlords. Keep them close and reward them even if in a small way. Consider doing the following:


Offer a Discount Incentive

A discount is the least you can do as a show of good faith for their efforts.

Come up with a reasonable discount rate and give them notice, without a doubt, they’ll be happy for such a gesture from you.

Whenever a tenant hears about a change in policy about rent arrears, most of them anticipate an increase in rent dues.

But this time around they gave them a surprise with a discounted rent for several months or so. Or are you looking to wait until they begin leaving for some reason that you wake from your slumber?

You may want to give your tenants a $100 discount. It’s isn’t much compared to the losses others are making.

Such small gestures will improve the relationship between you and the occupants.


Upgrade the Houses

Nothing feels better if you’re getting more than the value of your money.

If the occupants establish a picture of getting more than what they paid for, no one will dare leave your property.

Make a move to upgrade the flooring of the living rooms and bedrooms as you prepare for moratorium expiry. You could search for renovated 1 bedroom apartments near me to get a look at how upgrades have been done and emulated.


When Does Eviction Moratorium End 2


Not only will that make the occupants happy but also increase the value of your house. So it’s some sort of win-win situation for both parties.

If your property has nice space for occupants outside, doing landscaping and changing the look of the place is even better.


Those Who Make Partial Payment

What are you planning about this group of occupants? It’s not their fault but at least they have tried their best efforts to bring something before you.

While it doesn’t sit well with your accounting books, you have to come up with a proper plan to address this type of group.

The extension after March 31 was imminent and now planning for June is necessary.

Taking early precautions will be the way to go while assessing the sustainability of keeping this type of group within your property premises.

I suggest you do the following as a way of taking measures and protecting the future of your investment.


Plan for a Face-to-Face Meeting with the Tenant

Calling for a face-to-face meeting will give you room to discuss your options and communicate your plans to them conveniently.

Transparency is key to reaching a common ground. Whether you’re planning to make some changes or not, letting the tenants be aware of them is critical not only for your relationship but also for legalities.

You may want to discuss how they will offset the current arrears and any future expectations from them. Staying on the same page is important and will allow both parties to agree on what’s best for both sides before rushing to an eviction decision.

Besides, you might want to get clever a little and bring a new lease agreement into shape.

For example, you may promise to waive the previous arrears but instead, suggest increasing the current monthly rent rate by a certain figure.

Apart from relieving them of the burden, you’ll be able to recoup your money over time.


Contacting the Local Government for the Stimulus package

Make efforts to contact the local government and inquire about the stimulus package for property owners.

Presidents Biden’s American Rescue Plan of $1.9 Trillion will provide both tenants rental assistance and landlords relief during these unprecedented times.

Check if the tenants are eligible to apply for the rental assistance package. The government allows the landlords to apply for rental assistance on behalf of the tenants but only with their consent.

Such an avenue will be good for both of you if the tenants qualify for protection. The government seeks to protect those with less than $99,000 household income.

Making such an effort will help your tenant avoid eviction.


No Payment at All

For landlords in this category, it’s easy to their pain. The type of tenants who play “rent-roulette” don’t pick calls hard to find them around.

It comes a time when you have to make decisions on what to do with them. Part ways after eviction moratorium notice ends? It’s all yours to decide on what’s the best cause of action to take.

The worst part of this group is the absence of communication. It’s pretty tough to take a hit on behalf of people who don’t even have the decency to communicate and they make no effort for the same. So what should you do in such a case?


Seek Legal Advice on Eviction

If you’re planning to part ways with tenants in such a group, it’s important to seek legal advice on how to make the process smooth without facing any penalty.

Call your real estate attorney and start the process as early as now if you’re to make it in time come June 30, 2021.

The reason being some state eviction cases may take a little longer. It’s important to take into account the CDC eviction notice while navigating a way out.


Another Way Could be Paying Tenants to Move Out

If you feel your relationship with the tenants has hit rock bottom and there’s no way you’ll both have a common ground, offer money for them to move out of the property.

It’s not easy for anyone out there and you’re trying the best to stay afloat. It’s never easy issuing out eviction notice to your tenants either, especially during these difficult times.

An eviction sounds too harsh even when it’s done for good reason.


When Does Eviction Moratorium End


Ask for a face-to-face meeting and discuss your decision and get their views as well. If they agree then, let them move out and inspect the property and make sure it’s in the right condition before releasing the money.

Allowing the tenants to take the lead here to clear the property is better instead of eviction.


Final Take

Are you prepared when the moratorium ends? What if the moratorium is extended once again?

While the pandemic has brought so much harm to industries all over the world, this might be the right time to review your lease agreement and the policies you have in place.

No one knows if things will be better by the time the eviction moratorium expires.

Taking precaution is the way forward while protecting investments. It’s unknown whether further eviction moratoriums will be issued by the Centers for Disease Control and Prevention after June 30, 2021.

Just like congress took measures to cushion the economy through the CARES act, you too take the necessary steps to prevent further damages.

The cares act was signed into law by President Donald Trump on March 27, 2020.

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Gaby Wallace

I'm a blog writer and I own and manage my own blog called Gaby Creates. I mainly write articles about home improvement, real estate, interior design, roofing, solar energy, and pest control.

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