What The Eviction Moratorium Means For Real Estate Investors in Greenville

What The Eviction Moratorium Means For Real Estate Investors in Greenville

The eviction moratorium expires on December 31st, and the CDC enacted this to prevent a wave of evictions that they found would spread COVID19 by renters. This order was for those who are already qualified for the CARES Act and defaulted on rent payments to prevent them from being forced into overcrowded living conditions or homeless shelters. These tenants must have provided a statement stating that the pandemic has caused trouble and demonstrated that they have used and applied for all available funds. We strongly recommend Documentation. They must also say if they got evicted, they would likely become homeless. That means the eviction moratorium for real estate investors in Greenville.

Other Reasons

Real estate investors in Greenville can still process evictions for reasons unrelated to non-payment of rent during the eviction moratorium. You do not have to tolerate tenants committing criminal acts, threatening other tenants, or any other legitimate reason for eviction. It is highly recommended to practice due diligence to ensure that your tenant does not qualify for the terms of any permanent order and to be prepared to withdraw from the eviction process if you file a signed statement of financial hardship due to the pandemic. Ensure you are aware of the current CDC order and any state or local government orders regarding tenants and evictions. Civil penalties for the owner or the resident are a risk, and the CDC can fine the property owners relatively high sums. Tenants who cannot answer yes to all qualifying questions do not qualify. They are signing the document under penalty of perjury.

Partial Rent 

When the order expires, not only will the unpaid rent still be owed by the tenant, but their monthly rent payments will be due in full in the future. One avenue is to discuss a plan with your tenants to begin making partial payments towards the monthly payment to the best of their ability during the period covered. Otherwise, unpaid rent for real estate investors in Greenville under the eviction moratorium rules means either funding the lost income from other sources or suing your tenants for the rent. The outcome of the latter of these options is questionable at best, given that financial hardship is the very reason for non-payment of rent.

Filing Evictions

Although courts will not hear cases until the order expires, the update made to the original eviction suspension from the CDC means that real estate investors in Greenville can initiate eviction court proceedings before the order expires. Evacuations cannot take place within the time covered by the order. This update explains what the CDC declares is and is not covered under the ordering guidelines, and you can find it under the Frequently Asked Questions section of the CDC website as a document. In most cases, evictions take between 3 to 30 days. Depending on local property governing laws issued at the end of the moratorium due to the pandemic, courts will begin to process evictions. These evacuation procedures may start as early as January 2021. Landlords should remain up-to-date on recently filed court cases and fight endowments on behalf of owners, based on the premise that the CDC does not have the constitutional authority to enact rental policies like the eviction moratorium.

Repayment Plan

Whenever possible, real estate investors in Greenville should consider working out a repayment plan for the rent arrears accumulated during the eviction moratorium. In many cases, landlords and tenants have an amicable relationship and wish to do everything possible to maintain the current arrangement. If both parties can afford this option and agree with the amount that the landlord would be adding monthly, in addition to future rent payments, you could keep your good tenants. As a bonus, you’ll know you’ve helped a family maintain their home. It would be best for all parties if you could work with your tenants well in advance of the impending deadline.

Document Communication

When communicating with tenants under the protection of the eviction moratorium, real estate investors in Greenville  would be wise to carefully document all communication. Should things progress legally, you will have every piece of evidence available to show your actions and whatever steps taken to work with your tenants during this time.  Your documents will also provide backup, should your tenant attempt to omit any facts during the court proceedings, you can protect yourself from such a possibility with careful record-keeping. 

Pitt Home Buyers will help you understand your rights as a landlord and all that the eviction moratorium means for real estate investors in Greenville. Pitt Home Buyers is happy to answer any of your questions or concerns about what will happen to renters after the new year. Just reach out to our team by sending us a message or giving us a call today at (252) 618-0963!

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