Evictions seeing exponential rise in MA (Boston: foreclosures, renters, mortgage)

[id77]

Originally Posted by porterhouse

was this serious?

Why isn't this serious?

Any responsible owner also has a plan that includes funding for negative contingencies such as lack of income from rent.

If the expectation is that an average joe should have emergency savings to cover 6-12 months of expenses in the event of no income, it's also reasonable to expect a landlord to have emergency reserves to cover 6-12 months of no rent/vacancy in the event of a downturn. That also gives both joe and landlord ample time to find alternative sources of funds to weather a longer downturn and/or liquidate assets to sustain themselves longer.

As a buyer of a primary residence, I was expected to produce a minimum of 12 months of reserves just to secure a mortgage. Landlords buying investment properties should be held to an even higher standard.

[GeoffD]

Originally Posted by id77

Why isn't this serious?

Any responsible owner also has a plan that includes funding for negative contingencies such as lack of income from rent.

If the expectation is that an average joe should have emergency savings to cover 6-12 months of expenses in the event of no income, it's also reasonable to expect a landlord to have emergency reserves to cover 6-12 months of no rent/vacancy in the event of a downturn. That also gives both joe and landlord ample time to find alternative sources of funds to weather a longer downturn and/or liquidate assets to sustain themselves longer.

As a buyer of a primary residence, I was expected to produce a minimum of 12 months of reserves just to secure a mortgage. Landlords buying investment properties should be held to an even higher standard.

We're now 9+ months into the pandemic. The eviction moratorium started in April and there were a lot of missed rent payments on March 1. You're trying to say that it's expected that a mom & pop owner of an owner-occupied multi-family can fund a tenant stiffing them for 9 months of rent? If you send the notice to quit now, it would take you at least 3 months to get them out so that's a full year.

[msRB311]

I've never been a landlord and don't forsee myself every being one but you cant blame them for wanting to get top dollar or as much as they can. I can't believe how much it costs to buy a house in much of the greater Boston area, but no one in their right mind is going to ask for less. It's unfortunate that it's become so expensive to live in Boston, but people don't have to live here, there are always cheaper options.

A landlord is kind of in a customer service position once they have tenants though. They have to fulfill the needs of the person paying them to live in their home and if they don't they could get into trouble. There is section 8 housing for poorer people so there are opportunities for them to pay nothing or very little.

It's hard to feel bad for people who choose to move here or live here and have very high salaries complaining about rent. No landlord forces anyone to stay, if they don't like it they can leave.

I realize that the pandemic has made it difficult for many but many who were furloughed are still getting paid and if anyone was fired or let go they should be getting unemployment. And there are plenty who never lost their jobs.

[id77]

Originally Posted by GeoffD

We're now 9+ months into the pandemic. The eviction moratorium started in April and there were a lot of missed rent payments on March 1. You're trying to say that it's expected that a mom & pop owner of an owner-occupied multi-family can fund a tenant stiffing them for 9 months of rent? If you send the notice to quit now, it would take you at least 3 months to get them out so that's a full year.

Yes. It's expected that I support myself if I lose my job for a year. If I start running low on cash, I'm going to have to sell assets (probably at a loss) and other things to keep going. If I run out of things, I lose. Game over. Bankruptcy.

I'm sorry that the barrier to entry for landlordship is so very much higher, but that's the reality. If unfortunate things happen that puts you out of income, you get to liquidate until that runs out then you get to file bankruptcy.

[Shrewsburried]

Originally Posted by id77

Yes. It's expected that I support myself if I lose my job for a year. If I start running low on cash, I'm going to have to sell assets (probably at a loss) and other things to keep going. If I run out of things, I lose. Game over. Bankruptcy.

I'm sorry that the barrier to entry for landlordship is so very much higher, but that's the reality. If unfortunate things happen that puts you out of income, you get to liquidate until that runs out then you get to file bankruptcy.

Personal accountability and failing to fulfill existing contracts are two very separate things. One could easily apply your accountability argument to the tenant versus the landlord.

[msRB311]

We're living in the student loan forgiveness era. No one thinks they should have to pay for anything.

[massnative71]

Originally Posted by id77

Yes. It's expected that I support myself if I lose my job for a year. If I start running low on cash, I'm going to have to sell assets (probably at a loss) and other things to keep going. If I run out of things, I lose. Game over. Bankruptcy.

I'm sorry that the barrier to entry for landlordship is so very much higher, but that's the reality. If unfortunate things happen that puts you out of income, you get to liquidate until that runs out then you get to file bankruptcy.

Not all of us make 500K a year.

[msRB311]

Originally Posted by massnative71

Not all of us make 500K a year.

Right but many do make 120k or so particularly couples. And again why do people move to or continue to live in Boston if it's that much of struggle? If your job is in Boston and you dont want to leave it that's kind of your own choice. As I said I think the prices have become ridiculous but it is what it is. The nonsense with expecting handouts has gotten out of control.

[redplum33]

Originally Posted by msRB311

The nonsense with expecting handouts has gotten out of control.

Didn't you want a $500 EBT card?

[sawyer2]

Yes, there are inherent financial risks with being a landlord as there are with any class of investments - vacancy, non-paying tenant, drop in value, unexpected maintenance etc.

And too many people go into it thinking that you just sit there and collect the checks, without having a rainy day reserve/plan. That is foolish and any down market will punish them accordingly.

However, I do have an issue with an eviction moratorium without any commensurate moratorium in taxes, interest, or other.