Increased Risk for Landlords?

[Tekward]

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."

[WhiskyDave]

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.

[foxfirev5]

Good luck with evictions going forward. I've gone with broad index funds at my age and simplistic future investment plan.

[Sunset]

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.

[foxfirev5]

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.

[Mr._Graybeard]

Quote:

Originally Posted by foxfirev5 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.

[Koolau]

Quote:

Originally Posted by foxfirev5 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.

[foxfirev5]

Quote:

Originally Posted by Koolau 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.

[EA-Sports]

Quote:

Originally Posted by Koolau 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.

I’ve 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 can’t pay their rent or don’t 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, I’m curious with this eviction freeze what happens when a tenant loses their job and can’t 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.

[Mr. Tightwad]

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.

[pb4uski]

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.

[Teacher Terry]

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.

[calmloki]

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.

[CSdot]

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.

[Another Reader]

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.

[freedomatlast]

No issues here. All tenants are up to date on rent and paid in full.

[pb4uski]

Quote:

Originally Posted by calmloki ...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.

[harley]

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?

[Dash man]

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 isn’t a wealthy guy. Fortunately, the people moved out in December. They trashed the place, but he’s a handy guy and fixed it up and sold it in two days. Hopefully the sale won’t fall through. He has a mortgage, but refuses help from us.

[Sunset]

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.