When COVID19 eases up in Colorado, 450,000 renters could face eviction (Denver: employment, buying)

[Westerner92]

Originally Posted by StealthRabbit

The majority of tenants in default aren't going to pay rent, never intended to pay rent (once they were granted free rein to quit paying.). They will build the largest default possible, then move on when they must.

Tenants in default tend to be in a financial situation where there's no possibility of catching up anyway, so for the hit to their credit, there's no logical reason to not build up the debt anyway.

Landlord will be stuck with the deadbeat renters, the delayed and expensive eviction process, rehab of derelict places, lengthy vacancy while rehabbing. (Likely a 5-10 yr 'positive' profit offset).

Not gonna lie, this sounds like it's coming from a slumlord who's been in the game for decades and lost perspective. I realize you'll disregard this post or find a reason to write it off, but the lack of respect between tenants and the property/landlord is almost always a two-way street. Crappy tenants have no reason to care for run-down rentals.

Net result will be MUCH increased rents and far stricter screening process. Landlords will deal with more vacancies in the future, just to mitigate another future USA Government "Stay home FREE" edict giving the 'blessing' to tenants to not pay rent. When the Government gets involved with anything, costs escalate, service diminishes and the natural (fair) free market economy tanks. Example... Ag subsidies (including Food Stamps), Trade barriers (steel and Ag), Infrastructure projects, USA failed Medical and Public Education systems. ...

You realize "government" isn't a single entity right? The federal government has nothing to do with eviction moratoriums. And there's no such thing as a "free market". All markets have rules.

And speaking as someone intimately familiar with large infrastructure projects and can speak on them with legal authority, you're laughably ignorant if you think private entities could effectively supply infrastructure without government organization.

It's true the federal government has been completely captured by the financier class. Our government has multiple layers, and it's a tool capable of adaptation. Making sweeping generalizations about "government" screams shallow understanding of the world, much like if I were to say that you should look at the failed states in Africa to see the logical conclusion of "less government".

Expect a lot of property turnovers (among investors and among renters.) This leads the way to significantly increased rental fees. The US Government just 'upset-another-apple-cart' that could have worked it's way out between tenants and landlords as a MUCH cheaper and viable solution. That train left the station and will never return to 'normal'. Investors and tenants just got needlessly burnt for the long term.

Considering the number of delinquent tenants facing eviction vs. the number of available housing units in Colorado, either the landlords are going to eat the cost of late rent, or they're gonna just have an expensive game of musical chairs. That game ends with financially destitute people either getting lower rent because of desperate landlords or building actual slums like you see in the developing world. That is going to happen regardless of whether they can ride out the pandemic with a roof over their heads or not.

And again, the federal government has nothing to do with this. State governments across the political spectrum made it clear they don't trust slumlords to be decent during the pandemic.

[Vision67]

Eviction prevention task force finalizes recommendations for governor

https://www.csindy.com/news/local/ev...d11206c5f.html

"The issue of evictions is so complicated that even the governor's Special Eviction Prevention Task Force thinks it may need a fifth meeting. On Oct. 1, the task force met for the fourth time in the past month to finalize its recommendations to the governor and hash out a way forward for Coloradans facing an unprecedented pandemic paired with an economic crisis.

Though a Centers for Disease Control and Prevention (CDC) order banned evictions until 2021, Congress has failed to pass a second COVID-19 relief bill, leaving landlords and tenants without financial assistance. So, although qualified people will not be kicked out of their homes in 2020, tenants will be asked to pay thousands of dollars of past-due rent in less than three months.

In August, the Aspen Institute, a Washington, D.C.-based nonprofit think tank, estimated that without an extension of federal aid, 25 to 36 percent of Colorado households are at risk of eviction by the end of 2020. Currently, the state offers aid to both landlords and tenants through Coronavirus Aid, Relief, and Economic Security Act funding.

The recommendations to Gov. Jared Polis will include:

Recommend that landlords are required to provide information on the CDC Temporary Halt in Evictions in a tenant declaration form before initiating an eviction.

Recommend a suspension of late fees through the pandemic for tenants who can demonstrate through self-certifying forms, that the COVID-19 pandemic has adversely affected their economic situation to the extent that they cannot pay.

Recommend the state legislature take up in January: capping late fees, extending the grace period before a renter is issued a late fee and exploring the possibility of a tax credit for landlords who forgive tenants’ rent during the pandemic.

Recommend the governor prioritize additional resources towards more housing assistance and eviction prevention for those affected by COVID-19.

Additional recommendations will be added from the meetings in the final Oct. 9 presentation to the governor. At this point there is no fifth meeting scheduled for the task force."

[SkyDog77]

Originally Posted by annie_himself

Do you realize that 80% of Americans can't afford a $1000 emergency? I know you can afford to live in a really nice area but this is the real world here.

Agree and my remarks were certainly a bit callous. I know plenty of people who own an investment property or two and will lose their retirement plans should the renters be allowed to simply not pay. Nothing fair in this world I suppose.

[Gaylord_Focker]

Originally Posted by Therblig

Still wondering why small investment landlords are the anointed exception to every other 'provider' having to face AR shortfalls for the whole spectrum of reasons.

I mean, I bet utility companies are failing to get deadbeat dollars, too. And mortgage firms. And GMAC. And... of course, they're failing to get payments from good, hardworkin' white families that exhausted their resources, too.

I think families of all colors are taking advantage.

[Willy702]

Originally Posted by SkyDog77

Agree and my remarks were certainly a bit callous. I know plenty of people who own an investment property or two and will lose their retirement plans should the renters be allowed to simply not pay. Nothing fair in this world I suppose.

A bit dramatic don't you think? If one's retirement plan hinges on getting six months or so of rental payments from a tenant then that was not much of a retirement plan.

I own rental homes and have been getting payments. One month they came in a little late and I just let it slide. Like most who do this I have a fund for emergencies because having the A/C unit go out or having a myriad of other problems is going to be more costly than a month where tenants don't pay. If a tenant was just not going to pay for awhile, I could always ask for forbearance on my mortgage and have little doubt I would get it. Not an ideal thing to do so I haven't gone that route, but there are always solutions if needed. Commercial owners have even more options than I do so I think there is very little chance of any real issues coming about because of non-payment of rent during this period of time.

[SkyDog77]

Originally Posted by Willy702

A bit dramatic don't you think? If one's retirement plan hinges on getting six months or so of rental payments from a tenant then that was not much of a retirement plan.

I own rental homes and have been getting payments. One month they came in a little late and I just let it slide. Like most who do this I have a fund for emergencies because having the A/C unit go out or having a myriad of other problems is going to be more costly than a month where tenants don't pay. If a tenant was just not going to pay for awhile, I could always ask for forbearance on my mortgage and have little doubt I would get it. Not an ideal thing to do so I haven't gone that route, but there are always solutions if needed. Commercial owners have even more options than I do so I think there is very little chance of any real issues coming about because of non-payment of rent during this period of time.

Maybe. If the government decrees non foreclosure rules and does not reimburse you for lost rent, they are basically asking you to subsidize at a much higher level than most of the rest of the population.

Requiring landlords to keep non paying tenants is fine, but there should be assistance provided for them as well. It doesn’t seem reasonable that you pay a disproportionate amount to fund recovery simply beside you own a few homes. Businesses were given relief to keep employees. Why aren’t landlord given relief to keep tenants?

[Westerner92]

Originally Posted by SkyDog77

Maybe. If the government decrees non foreclosure rules and does not reimburse you for lost rent, they are basically asking you to subsidize at a much higher level than most of the rest of the population.

Requiring landlords to keep non paying tenants is fine, but there should be assistance provided for them as well. It doesn’t seem reasonable that you pay a disproportionate amount to fund recovery simply beside you own a few homes. Businesses were given relief to keep employees. Why aren’t landlord given relief to keep tenants?

Living hand-to-mouth off illiquid investment dividends isn't a business. Governments didn't bail out those who had dip into their 401(k) principal this spring either.

It's unfortunately too late for universal basic income to help out any landlords who didn't have any savings.

[High Altitude]

Every person and business should have emergency savings. Using savings as a reason you don't help a group, but at the same time you don't hold another group to the same standard is wrong IMO.

I think you either help everyone, or help no one.

By not helping out the landlords, but helping tenants, all you are doing is making it even harder to be a renter in the long term.

[daprara]

the covid is not going away any time soon

[Willy702]

Let's get real here all you doom and gloom people that reside in this area. How many unemployed people do you know? How many people do you know are newly desperate from the pandemic? Not counting anyone who was already on edge but now face hardship. I know none myself. Yeah certain jobs facing tougher times , but unless all your friends are food service or bartending, or something still facing tougher conditions, I bet most didnt lose a job or are already back. I had one tenant who faced furlough, she moved back to Omaha. Her roommate got another person in there immediately. The one who stayed had a job I was concerned about, she said she's been busier than before.

Not saying things haven't gotten more difficult or that there aren't people who are struggling but we are fortunate here in that it's been for most a road bump. Reading some of you you'd think it was 35% unemployment and no jobs out there. Meanwhile everywhere I go I see now hiring signs. Not great jobs of course but damn some of these places paying $16-17 to start. It's just not as bleak for most as some want to think it is.