- July 20, 2021
- Posted by: Jeremy Mathis
- Category: Uncategorized
In an unsurprising turn of events, the moratorium for eviction was once again extended till the end of July by the Biden administration. While the administration got a pat on the back from renters and the public, landlords are feeling the pain of not collecting rent – to the point of selling. While this is said to be the “final” extension, the future is still bleak for many homeowners renting out their properties.
How has the eviction moratorium affected property owners? Let’s find out.
Why A Moratorium?
When the pandemic started early in 2020, a moratorium was passed that says renters who are unable to pay rent due to their source of income being adversely affected by COVID-19 are immune to eviction. This moratorium was extended from March 2021 until June 30. Another
extension was given until July 31st, 2021.
This moratorium aimed to help individuals and/or families who were struggling financially due to the pandemic. After all, the last thing the country needed was more people on the streets.
The Moratorium and Small Landlords
While this was celebrated as a logical and humane move by the government, it has its share of flaws. The first and most significant would be that the moratorium sat on the assumption that everybody who rents out their property are rich. While this is true for large, multi-property
landlords, some smaller single-family landlords are getting hit harder.
A recent STOUT Institute study estimated that landlords are owed $34.3 billion in collectible rent. Bigger landlords can weather the storm, but single-family rental businesses are now getting pressured to do desperate measures.
Another flaw is that while the tenants are not required to pay their rent if they are affected by the pandemic, property owners are still expected to maintain mortgage payments and other payments for the property. In a survey conducted in the last quarter of 2020 by Avail and Urban Institute, it revealed that more than 30% of landlords were feeling the pressure and were looking at the idea of selling their property off.
This is because landlords carrying a mortgage or earning lower income are forced to use their savings to cover the monthly expenses for their property. As the moratorium gets extended, they dig deeper into their savings, causing multiple financial issues.
So should landlords sell now?
If you are one of the property owners who are thinking of selling off your property due to the moratorium, there’s good news for you. The residential market is on a roll, and it’s on its best streak in nearly a decade. This means that if you want to sell it now, you will be getting the best price. The only question is whether you can find the right buyer or not.
This is because there’s a complicated situation that will happen when you decide to sell your rented property. First off, with the moratoriums still in effect, the buyer will not move in or rent the place out as there is still somebody “renting” it. That might prove to be a big problem if you wanted to sell your property on the market.
One solution that will allow you to sell your home at an acceptable price minus all the headaches is to contact home buyers such as Freedom Cash Home Buyers. Freedom Cash will offer cash for your property at any condition and any reason. If you still have renters in your property that you can’t evict due to the moratorium, Freedom Cash won’t see that as an issue.
Quick Cash For Your Property
If you are looking for a way to sell your rented-out home without having to suffer through the drama and legalities of the moratorium, contact Freedom Cash Home Buyers today. We will have a specialist ready to answer your call. You’ll get your offer within minutes. Call us today!