Any Real Estate Investors Suffering Due to Rent Moratoriums?

[MJ DeMarco]

Curious if any real estate investors on the forum are suffering because of RENT moratoriums?

Is it impacting you?
How are you handling it?
Are tenants taking advantage due to duress, or opportunity?

Is it impacting your ability to make your payments?

Is it forcing you to make changes? Say, to short-term rentals?

Please share your experience.

As for myself, I no longer own real estate as income property so I am not impacted.

 

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[ljean]

I have two dozen rentals and have had no collection issues. My property manager reported that IMPACT funds are now flowing in to some of his tenants who have fallen behind.

 

[WJK]

Residential units are my core business.

I have a couple of tenants who have used the Covid money to pay their rent. It took months to get that cash flow going.

I tried to evict one couple and the judge wouldn't even hear that I had evidence that they were lying on the affidavit they signed. I argued that the burden of proof had shifted since I had the proof in my hand. It didn't cut bait with the judge. I could have argued the 5th Amendment Taking issue and 4th Amendment Due Process issue -- but I knew the judge wasn't listening. The bad tenants moved anyway. I did get my judgement in the damages hearing.

I am completely rented up and I have a waiting list. I get calls just about everyday asking for housing. People pay their rent because they don't want to lose their housing. I have the only group of affordable housing in my community. I allow my tenants to have 2 pets, which is unusual for our area. I provide their utilities by including them in their rent. I have 21 households who are disabled or seniors, or both. I have 50 kids who live on my property. Big families have difficulty finding housing, so I take them in. During the summer, I have the only full hook-up RV spaces available for our visitors. I also have a couple of sleeping rooms that I rent out mostly to visiting workers and fishermen. And the only self-service Laundromat.

I'm like a mother duck taking care of everyone. This sure was NOT my dream business. I did NOT go to law school to be the caretaker for all of these people. But, it's a good life and I help a lot of people.

 

[SteveO]

@BellaPippin

 

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[Runum]

I am down to just 3 rental houses at this time. I am also renting out my home currently as we are traveling. All 4 rentals are paid up and everyone is apparently content(knock on wood). Not the case with some of my landlord peers.

 

[JAJT]

Canadian here, but same concerns. More so perhaps, because Ontario is just about the most tenant-friendly place on this continent and we've had eviction moratoriums on top of it all. It's damn near impossible to legally evict someone who doesn't want to leave since the legal eviction process could take 9-12+ months BEFORE the pandemic.

Luckily we have paying tenants and it hasn't been something we've had to deal with (yet, knock on wood) - but I'd be lying if I didn't say that the second I heard about eviction moratoriums my heart skipped a beat and it's been a nagging thought at the back of my mind for about a year now.

There was even a "movement" up here (mostly in Toronto) where renters were trying to get together to all agree to not pay rent and refuse to leave as a way of 'sticking it to the greedy rich landlords'.

It's unbelievable how anti-landlord the general public seems to be these days (maybe it's always been this way and I haven't been paying attention).

I wish the best of luck to my fellow landlords out there. This is a shit time to weather a bad tenant.

 

[Kak]

Curious if any real estate investors on the forum are suffering because of RENT moratoriums?

Is it impacting you?
How are you handling it?
Are tenants taking advantage due to duress, or opportunity?

Is it impacting your ability to make your payments?

Is it forcing you to make changes? Say, to short-term rentals?

Please share your experience.

As for myself, I no longer own real estate as income property so I am not impacted.

My good friend owns a couple of Houston area apartment complexes. He’s had only a small handful of issues out of hundreds of units. I was honestly shocked.

It’s making me want a crash so I can finally get a complex I don’t feel like I’m overpaying for.

 

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[WJK]

My good friend owns a couple of Houston area apartment complexes. He’s had only a small handful of issues out of hundreds of units. I was honestly shocked.

I have friends with almost no problems and then others who have had massive problems.

 

[Kak]

I have friends with almost no problems and then others who have had massive problems.

I wonder if it has to do with the demographics of the property. Lower income, crappy credit, external locus properties, VS stuff that’s even a little up market might make a big difference.

 

[WJK]

I wonder if it has to do with the demographics of the property. Lower income, crappy credit, external locus properties, VS stuff that’s even a little up market might make a big difference.

It has to do with the quality of the tenants and the management. I have good people here and we have sense of community.

I just got rid of a young couple who are a mess. They didn't fit in. They think that the world owes them a living and place to live. And we helped them. The local clearing house for the charities put up their deposit. The State housing office helped them every month with some Section 8 money to supplement their rent payments. This was all to help this young woman get her toddler son back out of State custody. Yes, she got him back. But, when they moved out they had done more damage to my rental unit than they paid in rent during the months they were here. They had a dog that pooped and peed on all of the floors. They ruined all the floors, carpets, and a bunch of sub-flooring. I had to buy piles of plywood to put on the floors. Talk about stink! And that's just the beginning. They ruined stuff like the new dishwasher. What a mess! I have known the young man all his life. I'm good friends with his grandmother. For my friend's sake, I agreed to help them by renting to them.

What if I had a bunch of these people around here?????

Most of my tenants are good people. Overall, I'm very blessed.

 

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[biophase]

None of my tenants missed a payment during the whole time.

My Utah property, I thought I was going to sell the place, so my PM told the tenants they could break their lease if they wanted. They found another place in a few days and moved out. We cleaned it and repainted it.

Then I changed my mind so I told my PM to find me another tenant and they found one in a day and we’re able to charge $300/mo more!

 

[Andy Black]

I’ve two little rental properties in the UK and my mum has one. We charge just below market rate. Not had any issues.

 

[Connor]

We've not had any issues with rent being deferred on our properties, but it helps that they are located in favorable jurisdictions. During the first few months of COVID, we took a little bit longer to collect, but since then, no real issues. Think the quality of tenants makes a huge difference, as our properties are probably comparable to B+ or A- units.

 

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[DebtFreeDr]

Curious if any real estate investors on the forum are suffering because of RENT moratoriums?

Is it impacting you?
How are you handling it?
Are tenants taking advantage due to duress, or opportunity?

Is it impacting your ability to make your payments?

Is it forcing you to make changes? Say, to short-term rentals?

Please share your experience.

As for myself, I no longer own real estate as income property so I am not impacted.

As a passive investor in syndications, I'm lucky to be with operators that have chosen areas of the country (south and southeast) that are growing, with tenants that have jobs that allow them to pay their bills (mainly white collar renters).

The only minor change was that two of the deals I'm investing in that are in Dallas switched from paying monthly to quarterly as they wanted to initially preserve cash when the U.S. shut down in the Spring last year.

 

[MattR82]

Insurance companies in Australia have only just started giving back the option for tenant default and damage on landlord insurance.

Having that saved my bacon on an investment property a few years ago. No doubt some landlords would have lost out big by not having that option available and having some crappy tenants damage their property.

 

[Sauce]

40+ doors and no problems. Most of my houses are on the middle end of the spectrum for my market.

Commercial portfolio has been performing well so far. The macro economy is much less important to me than the specific submarkets I am invested in.

 

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[MJ DeMarco]

Wow, incredible data/responses thus far! Either Fastlane RE investors are incredibly savvy, or the moratoriums aren't having an effect on landlords as much as presumed.

 

[BizyDad]

Wow, incredible data/responses thus far! Either Fastlane RE investors are incredibly savvy, or the moratoriums aren't having an effect on landlords as much as presumed.

I suspect it's savviness

 

[WJK]

Wow, incredible data/responses thus far! Either Fastlane RE investors are incredibly savvy, or the moratoriums aren't having an effect on landlords as much as presumed.

Some of the inner city landlords are in real trouble. And their tenants aren't even trying on the Covid money.

 

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