Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Increased Risk for Landlords?
Old 01-16-2021, 02:27 PM   #1
Recycles dryer sheets
 
Join Date: Nov 2006
Posts: 374
Increased Risk for Landlords?

I know a lot of FIRE proponents have leveraged rental properties for their financial freedom. I was wondering if the eviction bans have changes the risk profile for these investments, since they look likely to be extended: https://reason.com/2021/01/16/bidens...eptember-2021/


"The conversion of eviction bans from an emergency public health measure to a semi-permanent economic relief program continues apace with President-elect Joe Biden's new $1.9 trillion recovery proposal."
Tekward is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-16-2021, 02:50 PM   #2
Dryer sheet wannabe
 
Join Date: Jul 2020
Posts: 13
Not yet, as my tennants have all remained up to date...

Most of eviction moratoriums freeze rent increases, but also contain specific wording on re-payment plans and a burden on the tenant to attempt to repay or agree to terms on repayment.

I admit I am still concerned about the duration of this and how it could stay in effect thru 2021 or longer.

Having month to month leases also offers landlords more options.

I would also work with my tenants if neccesary and needed.
WhiskyDave is offline   Reply With Quote
Old 01-16-2021, 03:01 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 2,451
Good luck with evictions going forward. I've gone with broad index funds at my age and simplistic future investment plan.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
foxfirev5 is online now   Reply With Quote
Old 01-16-2021, 03:19 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 10,976
So far no affect, keeping my fingers crossed.
Have in the pre-Covid days, had late rental payments, but tenant warns me, and does pay maybe a week late.

Reality is, now that we are retired, I'll be happy to sell off my rental property as I don't need the mental hassle and mental worry. I'll put the money into an ETF and take long vacations without thinking someone may email me about a plugged toilet.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is online now   Reply With Quote
Old 01-16-2021, 03:49 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 2,451
Agree. I didn't mean to be a wiseguy. The war on landlords has caught many people off guard. Same as the war on savers. My only point is that if you have a choice - diversify.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
foxfirev5 is online now   Reply With Quote
Old 01-16-2021, 04:02 PM   #6
Thinks s/he gets paid by the post
Mr._Graybeard's Avatar
 
Join Date: Apr 2011
Posts: 2,128
Quote:
Originally Posted by foxfirev5 View Post
Agree. I didn't mean to be a wiseguy. The war on landlords has caught many people off guard. Same as the war on savers. My only point is that if you have a choice - diversify.
A lot of fixed-income funds have significant holdings in mortgage debt. While the yield has been welcome, I divested of a big holding at the start of the year.
__________________
Tick tick tick tock goes the clock on the wall as we're dancing the evening away -- Tick Tock Polka
Mr._Graybeard is offline   Reply With Quote
Old 01-16-2021, 04:21 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 5,120
Quote:
Originally Posted by foxfirev5 View Post
Agree. I didn't mean to be a wiseguy. The war on landlords has caught many people off guard. Same as the war on savers. My only point is that if you have a choice - diversify.
Yeah, I never understood blaming everything on the landlord. After all, s/he has to pay the mortgage and upkeep, taxes, etc. even if the tenant is off the hook. I understand that these are uncertain times and we all pay a price. Just don't think it fair to make it only the landlord. Landlords are people too.
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 01-16-2021, 04:29 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Posts: 2,451
Quote:
Originally Posted by Koolau View Post
Yeah, I never understood blaming everything on the landlord. After all, s/he has to pay the mortgage and upkeep, taxes, etc. even if the tenant is off the hook. I understand that these are uncertain times and we all pay a price. Just don't think it fair to make it only the landlord. Landlords are people too.
Yo boy, Agree totally. I've been there living on the edge. DW as well has gone collecting rent on a Friday night from a well drilling crew. I'm still sorry about that. She made out alright but that's one of a thousand reasons she can hit the casino any time she wants.
__________________
Took SS at 62 and hope I live long enough to regret the decision.
foxfirev5 is online now   Reply With Quote
Old 01-16-2021, 04:57 PM   #9
Dryer sheet aficionado
 
Join Date: Sep 2018
Posts: 29
Quote:
Originally Posted by Koolau View Post
Yeah, I never understood blaming everything on the landlord. After all, s/he has to pay the mortgage and upkeep, taxes, etc. even if the tenant is off the hook. I understand that these are uncertain times and we all pay a price. Just don't think it fair to make it only the landlord. Landlords are people too.

Iíve read recent comments on news about eviction freeze where commenters were blaming landlords who had mortgage on their properties, like WTH..what kind of logic is that?? So all landlords must have enough reserve to account for tenants who canít pay their rent or donít have any mortgage on their in investment properties so that the landlords can forgive the rents..In that case just nationalize the whole real estate biz..sorry for ranting..I have rental properties and fortunately my tenants have been pretty good with their rents, knock on wood. However, Iím curious with this eviction freeze what happens when a tenant loses their job and canít pay rent anymore? So tenants stop paying the rent and are protected by eviction freeze but landlords have to dip into their savings to pay their mortgage?

I understand that times are tough for everyone but it does not seem fair for small individual landlords who in many cases provide reasonably priced rental options for tenants.
EA-Sports is offline   Reply With Quote
Old 01-16-2021, 05:08 PM   #10
Full time employment: Posting here.
 
Join Date: Feb 2016
Location: SoCal
Posts: 827
3 tenants, 2 are fully paid up, 1 is a little behind. The one behind has been there nearly 20 years, whenever behind she always catches up.

So far so good.
Mr. Tightwad is offline   Reply With Quote
Old 01-16-2021, 05:18 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 28,539
It is odd/stupid that there is so much sympathy for tenants who are unable to pay their rent but so little sympathy for landlords with mortgage and property tax payments.

Of course, it seems that Congress critters are unable to think more than one step ahead.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is offline   Reply With Quote
Old 01-16-2021, 05:28 PM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Teacher Terry's Avatar
 
Join Date: Jun 2014
Posts: 5,222
I don’t understand the hate for landlords either. Many aren’t big companies and could be in danger of losing their properties without rent. It’s a hard time for many.
Teacher Terry is offline   Reply With Quote
Old 01-16-2021, 06:31 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 6,587
Oregon landlord here. Our eviction freeze is a bit more rigorous than the Feds. We are lucky to own all our property, so no mortgages, and mostly are in small apartments as rentals. However. We have a tenant who is working but has paid two half months worth of rent from May through now, so 8 months of missing rent currently. Can't evict her till June 30, and that assumes the Oregon eviction moratorium isn't extended again. Probably will be a pretty good backlog in the court system then, so add some more months..
We do need to keep up the property tax payments, fire and liability insurance, water and sewer bills, outside lighting and maintenance.
Know what though? I wouldn't want to trade places with my tenant, and when I think of the businesses that are forced to close or the employees who are trying to make it on a whole bunch of nothing I feel very very fortunate.
__________________
"Be kind whenever possible. It is always possible." Dalai Lama
calmloki is online now   Reply With Quote
Old 01-16-2021, 07:09 PM   #14
Recycles dryer sheets
 
Join Date: Apr 2014
Posts: 96
My tenants have been good. When this hit I decided I would work with the tenants if need be. I would hand them a paint roller and some cans of paint and trade for the rent. So far, payments have been on time.

I have some money (maybe 5% of my 401k) in a REIT, and it dropped 20% last year.
CSdot is offline   Reply With Quote
Old 01-16-2021, 07:18 PM   #15
Thinks s/he gets paid by the post
 
Join Date: Jan 2013
Posts: 2,623
Had one tenant move out early on after he lost his job and had to move in with family. He gave decent notice and left the place clean. Gave him the full deposit back. No problem renting it out again at a higher rent. A couple of people were late, but really no more than usual. Just rented one that had been vacant for a couple of months while being updated. 18 people requested to see it and the first applicant turned in the application before they saw it. They were well qualified and moved in yesterday. There is an eviction moratorium in Arizona, but so far it has not been an issue.
Another Reader is offline   Reply With Quote
Old 01-16-2021, 07:42 PM   #16
Recycles dryer sheets
 
Join Date: Oct 2013
Posts: 431
No issues here. All tenants are up to date on rent and paid in full.
freedomatlast is offline   Reply With Quote
Old 01-16-2021, 08:26 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 28,539
Quote:
Originally Posted by calmloki View Post
...We have a tenant who is working but has paid two half months worth of rent from May through now, so 8 months of missing rent currently. Can't evict her till June 30, and that assumes the Oregon eviction moratorium isn't extended again. ...
So is this tenant able to pay rent but refusing to because she knows that you can't evict her?

Just wondering... while I know you can't evict her can you report her as behind on her rent to the credit bureaus? That might get her attention.

If she is unable to pay then that is a whole different story.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is offline   Reply With Quote
Old 01-16-2021, 08:45 PM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
harley's Avatar
 
Join Date: May 2008
Location: No fixed abode
Posts: 8,152
Our tenants are all working and keeping up with their payments (knock on wood), so I haven't done much research on this. But our rental units have appreciated nearly 100%, so selling would be an option if things become too much of a PITA. I wonder how that would work with the eviction ban? If the house is no longer a rental would it be an eviction?
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
harley is offline   Reply With Quote
Old 01-16-2021, 08:58 PM   #19
Thinks s/he gets paid by the post
Dash man's Avatar
 
Join Date: Mar 2013
Location: Limerick
Posts: 2,987
We got out of the rental business two years ago except for a seasonal weekly shore house where they pay in advance. Unfortunately, my brother in law had a tenant that went eight months without paying and he isnít a wealthy guy. Fortunately, the people moved out in December. They trashed the place, but heís a handy guy and fixed it up and sold it in two days. Hopefully the sale wonít fall through. He has a mortgage, but refuses help from us.
Dash man is online now   Reply With Quote
Old 01-16-2021, 11:11 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Sunset's Avatar
 
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 10,976
Largely I think the issue is the same as rent controls in areas.
Because for every landlord there are more tenants, and politicians count votes.

Eviction moratorium looks good for politicians, basically buys votes.

If rent control was such a great thing, then it could be extended to all other pricing, like gas/groceries/new car prices, etc...
Of course that is not capitalism so it doesn't happen here, yet we allow rent controls.

I decided years ago not to get more into rentals, as I realized the game is tilted to be not in the landlords favor.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
Sunset is online now   Reply With Quote
Reply

Tags
landlord risk eviction


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Increased Potassium intake lowers stroke risk boatfishandnature Health and Early Retirement 2 04-07-2013 07:04 AM
health insurance and effect on increased health care costs Martha Other topics 9 08-08-2006 01:54 PM
State pension or increased earning potential? redoak Young Dreamers 4 06-16-2006 02:27 PM
Surprised the rate on your ARM increased? Sisyphus FIRE and Money 35 04-09-2006 09:05 PM
Add Int'l equities to FireCalc = increased SWR's? Cb FIRE and Money 2 02-26-2004 03:36 AM

» Quick Links

 
All times are GMT -6. The time now is 12:18 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.