FOR IMMEDIATE RELEASE:
Contact: Amanda Edmunds
I & E Insurance Agency
A Massive Pandemic Hit on Affluent Landlords
While thinking of the COVID pandemic, we certainly assume affluent landlords are in the safe business; they aren’t worried about unemployment and/or the majority of the government notices. When in actuality, they are as much a part of the pandemic loss as we are.
With the strict lockdown in place in many countries, it has made many people realize that you can no longer judge people for their wealth or status anymore. Due to major unemployment and shutdown of businesses, tenants are unable to pay their rent in time. As a result, landlords have been forced to witness a huge loss.
The Misconception for Affluent Landlords
While it may make sense to assume that landlords make a lot of money and you may think how could they even dare to ask for rent during such a time like this? When, in reality, even the lenders have lost money during this time.
Renters assume that all the money goes straight to the landlord’s pocket. When in reality, some landlords even make less than what is assumed for them. They take huge risks with mortgage, investments and other expenditures. If they don’t pay them on time, they can end up losing everything in the blink of an eye.
Can the Landlord Enforce Renters to Pay Rent During a Pandemic?
The government has refused to enforce rent collection as long as the pandemic lasts which has brought landlords to a standstill. It is still uncertain how much rent will be payable by the tenants and how long the landlords can keep this going.
The Federal Government has committed to disburse an approx $1,200 (one-time payment) to an individual. But for a majority of the people, this can only cover their rent for a month or two and the pandemic has lasted twice as long already.
How Much Loss Will A Landlord Stand?
The current financial situation is unstable which has affected landlords as much as any other civilian. Since tenants and renters are unable to pay their rents in due time, it leaves no choice for landlords than to bear the startling damage of income.
On the other hand, mortgage value on vacant house and property units keep increasing which brings landlords to a point where they keep the monthly rent lower than the actual value.
Ban on Eviction Can Frustrate Some Landlords
According to the strict government directives in many states and cities, there has been a ban on eviction to prevent landlords expelling renters from their residence. It is mainly to protect renters under COVID safety guidelines and emergencies.
This has pushed landlords to the edge because they cannot evict them from the property nor can they enforce renters to pay their rent right on time.