There’s A Lot Of Fear Of That 2009 Scenario
A report from CNBC. "Late Tuesday, the Trump administration announced a somewhat creative plan to stop most rental evictions through the end of the year. 'Without mortgage forbearance protections and protections from other property-level financial obligations such as property taxes, insurance payments and utility service, the stability of the entire rental housing sector is thrown into question,' said Doug Bibby, president of the National Multifamily Housing Council. 'I believe that this new regulation — and even greater eviction crisis that we will be seeing come 2021 — will cause a significant decline in multifamily values.'"
"It could also lower the value of single-family homes, as small landlords default on their mortgages and those homes go into foreclosure."
The Daily Free Press on Massachusetts. "The Boston real estate market has seen a significant decline in rentals since the pandemic began. As many college students choose to learn remotely, thousands of rental units in Boston remain vacant. Some rents have declined by as much as 10 percent, said Ted Landsmark, director of the Dukakis Center for Urban Research and Policy, adding that landlords may face foreclosure if they do not find tenants. 'There’s a tendency to assume that all landlords are rich and are sitting on large reserves of capital that enable them to survive vacancies,' Landsmark said. 'But that’s simply not the case."
From News 3 Las Vegas. "Nevada REALTORS issued a statement Monday evening expressing disappointment on Gov. Steve Sisolak's 45-day extension of the eviction moratorium. The extension provided 'tremendous hardship' for property owners in the Silver State. 'Many of them will now have no recourse or way to cover their own expenses,' Nevada REALTORS said."
From First Coast News in Florida. "'They’re totally forgetting about landlords, completely,' said Jacksonville landlord Ronaldo Noureldin. Noureldin said he is currently missing $10,000 in rent payments, which is supposed to go to mortgage payments and fixing any problems with other properties. 'I still have ‘x’ amount of dollars that I still have to pay out, but it’ll have to come out of my pocket and that unit is not generating any income,'said landlord Scott Smith. 'We’re really being left high and dry.'"
From NBC Miami in Florida. "Patrick Weir said his tenants stopped paying rent in April. 'I’m being taken advantage of,' Weir said. 'After they stopped paying, I sent them emails, I sent them texts and I called them. They have not responded.' For the past five months, Weir said he has kept paying the mortgage on his property – even though the tenants owe him more than $10,000. 'I’m sure there’s probably thousands in Florida and across the country that are facing the same thing,' Weir said. 'Some of them may not be able to make their mortgage payment, some of them may have these tenants that are taking advantage of the situation.'"
The Dallas Observer in Texas. "Jamie Taylor, who is a property manager in Austin, said he knows landlords who are going broke at the same time their tenants are 'living their best life.' 'Do you have a heart for people? Of course. You don’t want to see anybody thrown out,' Taylor said. 'But there needs to be some type of balance, whether it is giving some type of assistance to the landlords, working with their mortgage companies … or tightening down on the stipulations of receiving your unemployment,' he continued. 'This is supposed to go to your bill, not vacation.'"
From KXAN in Texas. "'There’s a lot of fear of that, you know, 2009 scenario of properties being foreclosed on, you know, owners selling, because they can’t just make it work,' said Executive Vice President of the Austin Apartment Association Emily Blair. Blair says as more people are having trouble paying rent, some Austin landlords are getting closer to that reality."
From Spectrum News on California. "As the financial restraints of the COVID-19 pandemic continue, small landlords in Los Angeles — who own a few investment properties — are finding it harder to fill their vacant apartments. 'I have actually had five vacancies since March 15, which is when everything shut down. I’ve only filled three out of the five,' said Bettyna, a small landlord in Los Angeles. As the pandemic continues, Bettyna realized she needed to lower the threshold of requirements to help renters move in because the longer her rental properties remain vacant, she’s left with less money to pay the bills."
"'I’ve had a real hard time because I still have to pay my utilities, my mortgages, my taxes, my insurance, all the repairs that come up,' Bettyna said."
From ABC 7 in California. "Bay Area property owners are concerned the new eviction bill signed by Governor Gavin Newsom will lead to foreclosures. 'What is going to do is put a lot of mom and pops in foreclosure or in a very difficult position to pay their bills. Especially if you have a large group of tenants who are not paying at all,' said property owner Gustavo Gonzalez."
"Gonzales owns two housing buildings in San Jose. He says at least 20% of his tenants have been unable to pay. Gonzalez believes many property providers like him are holding on by a thread and hoping they don't lose everything. 'What they should've done is figure out a way to get more funds to help support the tenants with their payments and so we can continue to pay our bills, mortgages, property taxes, but instead they said 25% is the best we can do,' said Gonzalez."
From NBC Bay Area in California. "For the first time in six years, the average one-bedroom apartment in San Francisco can be yours for less than $3,000 a month. 'They offered me a very good, like 30% discount,' said tech entrepreneur Dominick Malzone. Malzone's landlord was desperate enough to offer a deep discount, but it wasn't enough. He runs a tech startup and moved to Las Vegas anyway, saying he can do business anywhere."
The New York Post. "A downtown penthouse that served as a depository for almost $51 million in stolen funds has sold for $18 million despite the fact that there were far higher bids, brokers tell The Post exclusively. The seller was the US government, who had took control of the penthouse, located at 212 W. 18th St. in Chelsea, in a record billion-dollar asset seizure case. Walker Tower’s condo board is furious over the transaction, which lowers the property values throughout the trophy condo."
"'I don’t blame the buyer — he got the deal of the century,' a member of the condo board told The Post. 'But this deal should never have happened. The brokers did not get the best price for their seller. They did not fulfill their fiduciary responsibility as brokers. It is a shameful moment for the industry.'"