How To Survive the “FREE RENT” Pandemic in CA!
(Please forgive the format, Active Rain Gremlins jacked up this post)
WARNING! The information below is not for bleeding hearts, it's for property owners that have helped provid ehousing, improved comps and contibuted to their local economy. These are tough facts and educated opinions regarding a plague we’re facing in CA and it’s not COVID-19. If you don’t own rental property, please share this with someone that does: clients, friends, relatives (in CA).
Below, I’m summarizing the 90-minute AOA video-
(Apartment Owners Association) included here.
Rent Control: The problem it creates “Tenant Welfare”. The difference between what a tenant pays and what the market value creates the welfare benefit. Which is not coming from society but citizens i.e. one owner. Not Fair! Society needs to pay that, not owners.
Housing Crisis: some say are caused by politicians draining money from the market for the last 40 years. Tenants consume housing, they consume funds through rent control, removing it from the hands of builders. The laws are driving builders & investors out of state.
Making Tenants “Eviction Free” is encouraging FREE RENT and again taxing the owners who provide housing and pay double taxes (property & income) on these properties. Tenants need to understand the rents are still owed and can be pursued through collections and small claims court once COVID-19 subsides. Think long-term regarding your credit.
Speed Limit 65 MPH “But We’re NOT Going to Enforce It.”
The Saddest Moment: Regulations that have robbed the property rights from owners by politicians to buy votes. The CA Judicial Council issued new rules this week on April 6. 2020, under the leadership ultimately of the CA Supreme Court: they banned (almost) all residential & commercial evictions, unless public health or safety is at risk. We’ve been stripped of our ability to evict a non-paying tenant-working the system, unemployed or not, whether they can afford rent or not, under this new COVID-19 restriction. They just removed the incentive to pay rent even if they are financially able to! They’ve just created a high probability of a future housing crisis.
This is not rent forgiveness. This is rent deferment and C.A.R. has already created a COVID-19 form NTAP 4/20 (NOTICE TO TENANT OF ABILITY TO PAY RENT). Open up a dialogue with your tenants who stop paying rent and make suitable arrangements and make clear the reckoning day. Small Claims court lawsuits are available now; they are not exempt!
Good News: CA is leading the Nation in “Flattening the Curve.” And I’ve now seen over a dozen webinars and live broadcasts touting the “light at the end of the tunnel” being visible by July 2020.
40,699 have signed. Let’s get to 50,000!
Financial Relief RESOURCES:
Beware of Scams and Fraud Schemes
(FYI:You can apply for both the EIDL and PPP grants/loans).
Relief for Rental Property Owners: https://www.carcovidupdates.org/relief-faq-rental-owners
Lanlord/Tenant COVID-19 Rights: https://www.carcovidupdates.org/relief-faq-rental-owners
Unemployment: https://edd.ca.gov/
EIDL -Economic Injury Disaster Loan Assistance: https://covid19relief.sba.gov/#/
SBA COVID-19 Guidance: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources
COVID-19 CA Response: https://covid19.ca.gov/
Stay Home Except for Essential Needs: https://covid19.ca.gov/stay-home-except-for-essential-needs/#top
San Diego Public Health COVID-19: https://www.sandiegocounty.gov/content/sdc/hhsa/programs/phs/community_epidemiology/dc/2019-nCoV.html
Covid-19 and Capital (Relief Fund) for Small Business (San Diego and Imperial): https://www.sandiego.gov/form/small-business-relief-fund-application
Paycheck Protection Program: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp
