Answers to your pandemic housing questions
Last month nearly a third of all renters nationwide were late on their rent. That only included apartment renters and did not include the millions of people who rent single-family homes. That is an astounding number of Americans who are in some form of financial stress. Luckily by the start of May, the number of renters who were late on their payments fell to below ten percent.
As we look to the future with unemployment affecting nearly one in four Americans, we have put together the top questions regarding housing. We hope that these answers to important questions help you as you try to figure out your path forward.
Q: I heard renters might be going on strike, is that true?
A: There is a strike going on to cancel rent. Renters have organized rallies in big cities like L.A., N.Y.C, and Chicago. People are binding together and threatening to not pay rent. It is still unseen if there is actionable change happening as a result of their efforts.
Many people are struggling so hopefully landlords will be forgiving and won’t kick people out for not paying rent. The $1,200 stimulus checks that most people received from the government won’t go very far. But in the end, landlords still need to have some income flowing so they should be willing to restructure lesser payments from their tenants. Evicting tenants isn’t good for the landlord either.
Q: Can tenants be kicked-out during the crisis?
A: The short answer is yes. But it depends on where you live and what if your landlord has a mortgage on the property.
Many states have instituted rules to help renters. However, other states haven’t done anything like Wyoming, South Dakota, Idaho, Arkansas, and North Dakota. States like Oklahoma and Georgia haven’t done much, but they did extend the rulings for evictions in the courts. Other states' courts are still closed so they couldn’t have any proceedings even if they wanted to. The states that have been the most helpful to renters have been Massachusetts and Rhode Island. Due to the fact that each state varies, make sure to see what the rules are within the state you live in. There have been attempts by Congress to pass legislation to cancel rent payments during the pandemic, but it is not clear if that will pass or not.
Q: Why does my landlord’s mortgage matter? How would I even know what kind of mortgage they have?
A: If the property you live in is supported by a federal loan you cannot be evicted for the time being. They have instituted payment forgiveness during this time. This applies to loans financed through groups like Fannie Mae and Freddie Mac. Section 8 housing is also protected.
If you are a renter of an apartment you can find out your building’s situation. Fannie Mae and Freddie Mac both have websites where you can look that information out. Just put in your address and it will tell you if your property is protected or not. Unfortunately for those who rent single-family houses, there isn’t a tool to help you find that out yet.
Q: My lease has an end date that occurs during shelter-in-place, what do I do?
A: Just because there is a shelter-in-place order, it will not stop your lease from expiring. However, your landlord cannot simply kick you out. In a worst-case scenario, your landlord would have to file suit against you. It is likely your landlord to give you a thirty-day notice to move out if they are trying to evict you. Or since the market is so uncertain, your landlord will likely try to incentivize you to renew your lease.
Q: Because of the crisis. I cannot use the gym or lounge in my building. Is it possible for me to request a partial refund due to this?
A: It is possible! However, it would be good to know that building owners might be spending more on maintenance during this time to keep your common areas clean. Some leases give you the right to get refunds for that sort of thing. However, given the circumstances going on, it might not be likely. If your building management isn’t cleaning the building like they should be and causing a health risk, that is a whole different story and you should voice concern.
Q: What happens to homeowners who cannot pay their mortgage?
A: Right now, there are over 3.8 million homeowners are now in mortgage assistance or forbearance. That represents more than 7 percent of all mortgages nationwide. Homeowners and landlords with federally protected mortgages have the opportunity to delay their payments for up to a year. There will be no penalty or interest charged if they do this. There are websites you can go to see if your property qualifies.
Some banks are providing similar forgiveness measures to those who have loans with them. However, that is up to the banks themselves to provide out of sympathy. The government is not forcing them to do anything. None of them, however, are giving anything nearly as good as delaying payment for a year. So just make sure you contact your bank to see how they are dealing with this pandemic.
Q: How do I get my landlord to renegotiate my rent? I have never met my property owner because it is a big corporation.
A: Writing a letter is your best option. Every apartment building has a contact address where you can communicate with the ownership. An email would be fine as well. If it is written out then there is documentation of the communications and will help you in the end in making your case, especially if there is government assistance that they aren’t providing you.
It would be smart to be proactive and reach out because when the pause on evictions stops you want to be well-positioned to have an arrangement sorted out with your ownership. Just remember that these landlords are worried about paying their expenses as well, so they need some money to come in the door. You could get a deal with them that works for both parties.