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LLs certainly would be sharing in the hit if they were evicting people, that causes losses.
It is surreal that the LL is supposed to suffer the losses not from vacancies and expenses of evictions, but to support the non-paying tenant to continue living in the property, many of whom are still working or doing fine off unemployment.
It is like the government telling grocery stores that people should be able to take what they need from their store and maybe they will pay you back later, because we're all in this together and businesses should expect some bad years.
This does seem designed to put small businesses including small landlords out of business, to be replaced by corporations who can absorb it. Less freedom for the individual, forget your American dream of independence and self made success, go be a good Amazon worker bee.
Everyone down the line needs to share in some of the financial carnage...like any investment goes , there is good years and bad years .....landlording is no different ...if you hitched your wagon to a tenant for a profit when the getting is good ,why should one be guaranteed a profit when something like the pandemic hits his tenant .....
Shouldn’t it be like buying stock in a corporation and it’s products ? That tenant is your money maker ...if he falls on hard times shouldn’t the landlord trying to earn a profit off the tenant take a hit when it is a mandated hit the tenant has to take ?
The problem for the banks is they don’t own most mortgages..most mortgages are bundled and sold so the banks only service the debt..they can’t reduce it unless they own it.
As an investor I am not guaranteed positive returns or any returns when certain events happen ,we invest and we roll the dice ....
So what if stocks started going down. And you knew they would continue to do so.
And the goverment said you could not sell them. Or you could not get your money out of the bank. Real estate through out history has been about as safe as cash in the bank.
It was your choice to hitch your money to a bank account, right?
Or what about if you where retired and the government took your retirement income for a year? I mean your fault you did not keep it all in cash buried somewhere.
Also RE is different than stocks since you know going in and assume the risk. And stocks have had that risk through out history.
What the government is doing now is for housing. But expecting just a select few to pay for it. If the government want to help out with housing. Then all taxpayers should pay to do so. Not just the ones that own houses.
And people need food morethan housing. Try telling grocery stores they can no longer charge people for food. See how well that works.
Add in after all this is over. We already had a housing problem. Now we have just caused a huge price increase for the years to come. Besides letting in millions more illegals that is.
There will be a lot more risk and a lot of landlord that leave the business. Guess you will pay for that.
So what if stocks started going down. And you knew they would continue to do so.
And the goverment said you could not sell them. Or you could not get your money out of the bank. Real estate through out history has been about as safe as cash in the bank.
It was your choice to hitch your money to a bank account, right?
Or what about if you where retired and the government took your retirement income for a year? I mean your fault you did not keep it all in cash buried somewhere.
Also RE is different than stocks since you know going in and assume the risk. And stocks have had that risk through out history.
What the government is doing now is for housing. But expecting just a select few to pay for it. If the government want to help out with housing. Then all taxpayers should pay to do so. Not just the ones that own houses.
And people need food morethan housing. Try telling grocery stores they can no longer charge people for food. See how well that works.
Add in after all this is over. We already had a housing problem. Now we have just caused a huge price increase for the years to come. Besides letting in millions more illegals that is.
There will be a lot more risk and a lot of landlord that leave the business. Guess you will pay for that.
It happened , remember they shut the stock market down for days after 9-11. We were all trapped in it.
Real estate is very different from the grocery ...the landlord still has the properties....the grocery no longer has the asset that creates the income or can create the income when the bread and milk are gone free.
It is such an entwined situation this pandemic . But one thing is certain , landlords will not be immune to financial hits either
It happened , remember they shut the stock market down for days after 9-11. We were all trapped in it.
Real estate is very different from the grocery ...the landlord still has the properties....the grocery no longer has the asset that creates the income or can create the income when the bread and milk are gone free.
It is such an entwined situation this pandemic . But one thing is certain , landlords will not be immune to financial hits either
9-11 yes for days. And most would have not traded for days anyway. And again stocks are a gamble to begin with.
And like grocery stores. What happens when the LL no longer has an asset that creates income. And has to face foreclosure. Or does not any longer have the income to provide services. Maintenance, heat etc...
Like you say a grocery store needs income to provide a service/product.
And grocery stores can at least sell the store/building at normal prices. Try that with a rental that has a tenant locked into getting free rent for a year. Will a homeowner buy it?
Again all the other times the government felt the need to provide housing. They felt it was worth it and benefited the whole country. So the whole country paid for it.
9-11 yes for days. And most would have not traded for days anyway. And again stocks are a gamble to begin with.
And like grocery stores. What happens when the LL no longer has an asset that creates income. And has to face foreclosure. Or does not any longer have the income to provide services. Maintenance, heat etc...
Like you say a grocery store needs income to provide a service/product.
And grocery stores can at least sell the store/building at normal prices. Try that with a rental that has a tenant locked into getting free rent for a year. Will a homeowner buy it?
Again all the other times the government felt the need to provide housing. They felt it was worth it and benefited the whole country. So the whole country paid for it.
There is no answer and life is never fair ,lots of professions ,businesses ,etc who thought that what they do for a living will remain unscathed are going to find that to be false thinking.
If you are involved with those taking bad hits you will likely take the hit too. There is no immunity today in any business
I know NY City since I lived there in the 70s and 80s, what landlords will do is what they did back then- walk away and abandon their buildings, vandals and scrappers get in and strip/destroy the building, someone usually sets a fire and that's the end of it.
The East Village, Ave A-D Houston st to 14th st had 500 abandoned buildings back then, probably 95% of them were demolished.
Here's what the typical building there looked like, block after block had numerous building like this, E5th street and Ave C-D was completely abandoned except two buildings on the corner.
The South Bronx was even worse, it looked like Beirut after bombing, parts of Brooklyn and Harlem also.
We had this happen to for a unit that came up in August. We didn't fill it until mid-September when I normally rent them within a few days.
I was surprised at the number of tenants that called who weren't paying rent to their landlords because of the moratorium who wanted to "rent" from me.
I know in my area, landlords are putting investments on the market at a high rate. Great for home buyers, but not so good for the long term rental prospects for my city. We are already short an estimated 3,000 rental units.
Oh yeah. I had a few of those. I had a few who told me they had the money cause they didn’t have to pay rent at their old place. ....you ever see someone get that confused wtf look on their face? I remember thinking this dude didn’t say what I think they said. But then again I don’t tell anyone I’m the owner. I’m just the guy who works for the owners. People tend to be more talkative.
Same here as far as listings. Lots of rentals that I know of are showing up with for sale signs. I spoke to a few LL I know abd they are all selling. None of them care about the tax liability or anything. They just want out. So the amount of rentals is ginna shrink. And wait till evictions start kicking in.
I’m looking to do a 1031 exchange and move out of Ca.
Quote:
Originally Posted by mathjak107
The most popular tenant killers only show up after they are in ..
Divorce ,illness and job loss can’t be screened for
Yes and 8 had a few of those. But yiu can mitigate quite a bit by careful screening and understanding wh9 you are renting to. If a guy has great credit, money in the bank abd a good job is going to be a better risk than a guy with so so credit, so so job and so so finances. Granted anything is possible I found people who have careers ad good finance to be lesser risks.in turn I reward them by not raising rates and working with them if there is a issue. I firmly believe you get treated as you treat others.
Quote:
Originally Posted by HB2HSV
They still keep coming.
My rent is up there as well but that didn't stop unqualified tenants from applying eventhough they were told we will check your credit, employment, criminal background, and income. They still pay for the background check and applied. I had 12 applications and only a couple qualified. Go figure.
Yes. And that’s why I have ads that state you must call. Do not email do not text. Yet they still text abd email. I don’t answer. I look at it this way. If you can’t follow a simple direction you’re too stupid to sign a lease.
Quote:
Originally Posted by jghorton
I can't help but wonder what's going to happen to all of these delinquent renters and landlords as the moratorium ends?? I would think their existing landlords would NOT be able to collect skipped/overdue rents, and thus, would evict them at the first opportunity. But, given the COVID/moratorium circumstance, I can't imagine any new LL NOT insisting on verifying with their prior LL ... and then, being unwilling to rent to them.
I had thought about getting into some rental property investments, but, this ongoing situation has dissuaded me.
People will get evicted. Some LLs will sell and get out. That will shrink up the availability of rentals and LLs who remain will still be able to choose the better tenants . The tenants with crappy credit will find some LL who will rent to them at exorbitant prices. Easiest way to find out if the person paid their rent is to ask for proof. No proof....say no thanks
The availability of rentals by private landlords is gonna shrink up. You’ll still have investors and big corporate types grabbing homes to msje them rentals
Quote:
Originally Posted by mathjak107
The problem is that business and workers are all taking big unexpected income hits yet landlords want their own profession to remain unscathed and earn what they always earned like nothing is wrong...especially on the commercial side.
It likely is not reality ...we are all in this mess together ...there will have to be adjustments and consolations across the board eventually
The problem isn’t how you stated it. If my tenants (who have been great in the past) were to have financial issues I told myself I would work with them. Why? Because I actually can and would want to. I understand this isn’t a normal thing. Most if not all people do understand that. But it’s my prerogative on what I do with my rentals. Not some pinhead politician. But you’re right we’re all stuck in this cesspool together. And all my tenants have paid on time with one exception. One required some relief because her restaurants were shut down. I agreed to do 1/2 rent for three months like she proposed. This was August September October. She’s back to paying normal for November December . But she’s been a great tenant for three years. If I just kicked her out I would have to deal with god knows what.
The problem is LL are FORCED to keep a tenant in a property and cannot legally evict. It’s one thing to have a non paying tenant not moving and refusing to pay..... Ok that’s a legal issue and can be dealt with in a court of law. I just have a big issue with some guy in a far away city telling me what to do with my business. As you can probably tell I don’t really care for politicians much.
And the big joke that the tenant is gonna have to make it up when the moratorium ends....lol who the hell are we kidding. Most LLs will never see a penny if that money owed. And please don’t tell me I’m wrong. I can only hope that people start saving and putting money away for a future rainy day. I know who the hell am I kidding
Last edited by Electrician4you; 12-06-2020 at 08:48 PM..
Everyone down the line needs to share in some of the financial carnage...like any investment goes , there is good years and bad years .....landlording is no different ...if you hitched your wagon to a tenant for a profit when the getting is good ,why should one be guaranteed a profit when something like the pandemic hits his tenant .....
Shouldn’t it be like buying stock in a corporation and it’s products ? That tenant is your money maker ...if he falls on hard times shouldn’t the landlord trying to earn a profit off the tenant take a hit when it is a mandated hit the tenant has to take ?
The problem for the banks is they don’t own most mortgages..most mortgages are bundled and sold so the banks only service the debt..they can’t reduce it unless they own it.
As an investor I am not guaranteed positive returns or any returns when certain events happen ,we invest and we roll the dice ....
That makes a lot of sense.. if you assume that the bank also should be willing to take a hit as well when the landlord can no longer pay the mortgage because their tenant can't pay the rent.
Sent notice.
Waited for payments
Kicked them out.
Filed court papers. Won and placed liens on assets.
Went so far as to re-possess vehicles and attach payments from wages.
Moved on to re-renting to tenants that again were either short term or not abiding.
Same cycle.
My LLC is by far not Hurting . Went so far as to :
Cut staff to 1/3 operations.
Remove amenities _ No gym, No pool use
Added Parking fees to garner folks License # number so they could eventually repo them for non payment.
They are completely abiding by the laws in place for contracts. No leniency , No debts, No problems for them.
That makes a lot of sense.. if you assume that the bank also should be willing to take a hit as well when the landlord can no longer pay the mortgage because their tenant can't pay the rent.
the banks would have to do something too as well as property taxes.
but that aint going to happen .
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