Many things are very uncertain today regarding “Private Property Rights” and what the “Government” will allow Property Owners/Landlords to can or can’t do with their Rental Properties.
Prospective Property Owners/Landlords are required to save up the funds for a down payment and further possess the ability to qualify for financing to initially purchase an Investment Property.
Property Owners/Landlords are then required to maintain their Investment Properties which includes paying never ending Property Taxes and paying for all required repairs. But when the “Pipe Breaks” and the Property Owners/Landlords are required to both “Fix the Pipe”, and further pay for it……………….NEVER does the Government that believes that they possess the Authority on how Investment Properties are operated ever show up and help to “Fix the Pipe”.
Somewhere along the line the Government came to the conclusion that it’s Not the Property Owners/Landlords who decides how their Investment Properties are operated, no it’s the Government decision.
Many landlords have been commanded to house their tenants for free, or near free, and to not even attempt to evict their non-paying tenants. Some landlords have been given “Taxpayer Relief” to pay some of the back rent from the Federal and State Governments, but still a majority of Property Owners/Landlords across the county have been stuck and left to carry their tenants for free.
The Government/CDC Eviction Moratorium Orders has now been pushed out until October 3, 2021. The Government’s “Stated Reason” is that this moratorium allows additional “Time” for rent relief to reach renters and to further increase vaccination rates. There doesn’t seem to be an end to this “Madness” being forced upon Property Owners/Landlords.
It’s always been the situation that those in the House of Representatives or in the Senate that think it’s a “Really Good Idea” to provide Fee Housing to peoples………..never pay anything ………………….and they always want someone else to pay, and wouldn’t you know it………………….. their Government Paychecks are never quarantined like the monthly rent due Property Owners/Landlords.
Like the initial Eviction Ban back in early 2020, the new “Temporary Order” has the “Stated Purpose” of slowing the spread of Covid-19. How does ordering Property Owners/Landlords to provide Free Rent to Tenants slow the spread of Covid19??????
The Biden administration has acknowledged that the “New Moratorium” will buy some time to protect the estimated 3.6 million Americans who could face eviction from their homes, all the while Ignoring the Supreme Court’s Decision on July 2, 2021, that clearly States that the CDC Eviction Moratorium is Unconstitutional………………well they’re doing it anyway!!!!
The Government’s Eviction Moratoriums all have provisions that Property Owners/Landlords will have the right to collect back rent once the Moratoriums have expired
But now Property Owners/Landlords are panicking even more regarding the Eviction Moratoriums since they just keep getting extended time and time again. Many tenants at some point once this moratorium is lifted, will not be at all collectable for their back rent due, which will result in a near total “Net Loss” for Property Owners/Landlords.
So, what can Property Owners/Landlords do to stay afloat while their Private Property Rights are being taken away during these never-before-seen times? and all the while having to pay monthly mortgage payments, costs of maintaining their Investment Properties and of course don’t forget about those property taxes that still need to be paid!! It just seems very little.
Most Property Owners/Landlords can’t even sell their Investment Properties because they’re occupied by Tenants who are NOT paying, so any Property Owners/Landlords must turn to getting loans on their Investment Properties or raising funds from other sources just to stay afloat.
Most Property Owners/Landlords are not sitting on hundreds of rental properties. They’re working-class families that own 1-3 Investment Properties. The profit margins even before all the Eviction Moratoriums were low, and now it has just become unsustainable.
Since Property Owners/Landlords are being forced to turn to seeking loans, they are the ones that are going to be left with additional debt, while renters get to just walk away “Debt Free”, since most will NOT be collectible.
Due to the effects of irresponsible government behavior and the resulting increase in inflation, now the cost of everything seems to be going up, including building materials, appliances and everything else that goes with owning a Investment Property. The additional effects of inflation will also squeezing Property Owners/Landlords even further…………….…..another gift from Government!!!!!
Once the Eviction Moratoriums finally expire, evictions rates will be sky high and homelessness will also go up accordingly.
Homelessness is already a major issue for most major cities in the United States, but it will soon get to a point of no return, which will result in many apartment units and houses remaining empty with most Tenants not being able to afford the rent, and where Property Owners/ Landlords will be forced to sell to Major Property Management Companies.
Small family Property Owners/Landlords will become a thing of the past if this domino effect is allowed to continue going forward. It just all seems to be grim for the housing market going into 2022 if the Government is allowed to take away Private Property Rights.
We all need to contact our Government Representatives to try to convince them that the current “Madness” just can’t continue.
Westar Lending Group is here for Property Owners/Landlords to borrow on their investment Properties, if there’re no other remaining options to stay afloat.
Our company has been funding real estate loans since 1986 and we provide the best rates and closing costs.
We offer both Commercial and Residential financing.
Please feel free to contact our company so we can determine the possible financing solutions we could provide.