| Getting To Normal
Slowly we are seeing signs that normalcy is returning. Lease applications are increasing. Rent payments are improving, And we are starting to get possession of those problem properties and return them to a positive cash flow position for our clients!
The CDC Eviction Moratorium is now the biggest challenge. We have received two of these affidavits. One is from a tenant who is barely behind and not even in our collection department. The other one was to have their possession hearing this week.
When receiving this affidavit we are reviewing all options. While Cash for Keys remains viable, the amount of money that has to be offered to influence a tenant who has been given permission to not pay rent for four months may be a hard pill to swallow. It remains the best tool though. The other option we have discovered is non-renewal of leases and then giving 30 days notice. It may not actually result in possession but we believe it may be a legal ground for eviction-even with the CDC affidavit. We know we are forbidden from posting Pay Rent or Quit notices when we become aware that a tenant has completed the affidavit.
We are advised daily that we are in unchartered waters and the penalty for violating the tenants rights under this protection are very high.
Criminal penalties for landlords who violate the order include “a fine of no more than $100,000 if the violation does not result in a death or one year in jail, or both, or a fine of no more than $250,000 if the violation results in a death or one year in jail, or both, or as otherwise provided by law. An organization violating this Order may be subject to a fine of no more than $200,000 per event if the violation does not result in a death or $500,000 per event if the violation results in a death or as otherwise provided by law.”
Short of federal assistance for rental owners, you may wish to consider holding your nose and offering a healthy Cash for Keys agreement. Which is why we may be having that discussion if you have a problem property and we receive a CDC affidavit from the tenant.
To Your Health!
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