header photo

Willy @ The Real Estate Project

Making Real Estate Happen

Tenants, Evictions and Investment Property Owners - Massive Problems

Rental Properties!!!
     There are many rental property owners who own 5 or less properties. Many of these property owners have loans on those properties because they took out a loan to buy the property or they leveraged equity to purchase other properties to use as rental properties. And because of the COVID-19 pandemic, many renters don't have the ability to pay rent. As a result, rental property owners now also don't have the ability to pay and loans on their properties. The rental property owners can't evict tenants since they are protected due to the current pandemic conditions and government intervention. 
     All of this leaves rental property owners in a very bad position. One that could cause many to just walk away from their properties and leaving the lenders to deal with the tenants. Lenders are not in the real estate business, but in the money lending business. So this leaves lenders in a situation of potentially hiring property management companies until the properties can be foreclosed on and sold at the trustee sale.
     Unfortunately you have a tenant who is stuck in the middle going from one day to another not knowing what the future will hold. There could come a day when they get notice that they are being evicted and no longer protected by the government. And even if a rental property owner is able to hold out, the property owner is going to want to be paid for all the back rent that will be due to them. And the tenant is not going to have that pandemic eviction protection to keep them from getting evicted. 
     It's going to be interesting to see how all this works out.   

Go Back


Blog Search


There are currently no blog comments.