Questions are coming in fast and furious from tenants about whether or not they have to pay rent at all during the coronavirus crisis. There is a ton of misinformation circulating around, as well as some of the mandates from the state and federal governments are being misinterpreted.
Unless you live in a HUD owned, financed, or assisted facility, or live in an apartment complex that is managed by the state or municipality, then you still have the obligation to your landlord to pay your rent. But we will go over the situation as it stands right now.
The Federal Housing Finance Agency (FHFA) has instructed Fannie Mae and Freddie Mac to suspend all foreclosures and evictions for 60 days due to hardships caused by the Coronavirus all the way up to a year for some mortgage holders.
Now, the Fannie and Freddie part more than likely isn’t going to affect apartment dwellers, but what it does show is a precedent being set across the country to basically put the country on pause in all facets while we get through this crisis.
Currently, talks are in the works to help landlord and apartment complex owners gain a moratorium on their own loans and mortgages at financial institutions as well. They have obligations that they have to take care of as well, which we will also explain below.
There are so many questions regarding this, let’s go over what is happening right now and what you can come to expect going forward.
Does A Moratorium Mean I Don’t Ever Have To Pay For That Month’s Rent?
No, a Moratorium or Forbearance doesn’t mean you never have to make the month’s rent eventually when payment was paused. That amount will have to be made up at some point.
A moratorium is just that, a pause. It doesn’t mean that your rent is simply forgiven, but rather it is a grace period that you are able to keep on living in your apartment without having to hand over rent because of the condition of the country at present.
Some tenants, especially the news coming out of California in the last few days, are taking the news of a “rent and eviction moratorium” as straight up “forgiveness” of the rent entirely. This is not the case, nor is it the case that you absolutely cannot be evicted during this time. You can, but it has to be some pretty extenuating circumstances.
At my apartment complex, I am offering the deal to tenants that they can come in and pay for 5 months rent up front and get the 6th month rent free if they are interested in doing this. This will guarantee them an apartment to live in, and it will shore up my own income, while giving them a discount in the process.
Now, not everyone is going to have the cash on hand to do this, and that’s ok, I will still work with each of my tenants on a case by case basis, but many landlords are implementing different proposals such as this to work as a benefit for both parties.
Can I Still Be Evicted During The Coronavirus?
You cannot be evicted during any suspensions of eviction during the Coronavirus if it has to do with not being able to pay your rent because of lost income or wages.
And while some states have put a completely moratorium on evictions no matter what, for most of the country, you can still be evicted if you are harassing other tenants, being destructive to the property, or other things that are in the lease that are outside simply paying rent.
The eviction process at this time may be slowed down or halted completely because the court systems are currently on hiatus as well. Not to mention the fact that the people actually handling and carrying out the evictions, all law enforcement officers, have been instructed not to do so in the vast majority of all cases.
I wrote another article recently on this same topic called “Can My Landlord Evict Me During The Coronavirus Crisis” which you can read by simply clicking on the link.
Can I Be Evicted For Reasons Other Then Pay During The Coronavirus?
If a tenant is doing something illegal, assaulting other tenants, causing physical destruction, or things of this nature, an eviction can still happen. The moratorium on evictions currently deal with people who are unable to pay their rent because they are not able to work due to the Coronavirus.
The other thing that tenants need to remember is that if you are doing unsavory things that would normally get you evicted on a regular basis, but think that the eviction moratorium is somehow going to shield you from this, you would be mistaken.
The moratorium on evictions doesn’t suspend the law in the United States, or give a free pass to just do whatever you want. It is simply designed to help keep tenants in their apartments if they can’t work currently due to the Coronavirus.
If a tenant does something that is illegal or against the least that would normally be grounds for eviction, those things still apply.
Additionally, if a tenant causes damage or something else to the apartment during the time of the moratorium, you can be assured that the landlord is going to have the papers ready to take those people to court and collections once this is over. Which, at this time, nobody wants to have to deal with.
So, please, be a good tenant, and come together with the rest of the country during this time!
Are Landlords Receiving A Moratorium From Their Payments?
As of April 3rd, 2020, there has been no moratorium put on the loans, expenses, and mortgages for landlords and multi-family homeowners, but that is likely to change, and we will explain why below.
Currently, the only provision being extended to landlords who own commercial property is a forbearance on their mortgage or loan. This means that for a period of time, say 60-90 days, the landlord doesn’t have to make payments to their lender.
But they have to make it up once the time period for the forbearance is over.
Most lenders are requesting that the landlord doesn’t apply for the forbearance until they absolutely need to, and that they try to pay back the 60-90 day moratorium payment in a lump sum.
This is going to be very difficult, if not impossible, for some landlords to do, especially if their only source of income themselves, their tenants, are not paying either.
Why should this concern tenants?
Because your landlord, like them or not, are the ONLY ones that are keeping up your apartment complex. They are the ones making sure the lights stay on, the gas keeps flowing, the yard is mowed, the sidewalks shoveled, and most importantly……all the maintenance gets done.
You may think that it is great that your landlord is having problems and that for whatever reason they don’t deserve your money. That’s fine, you can have that opinion, but if your landlord is there and have the capability to enforce the rules, make sure the lease agreement is being adhered to, and take care of any and all problems that arise on a daily basis……..you are quickly going to see your apartment complex turn into something from The Book Of Eli.
Now, while that might be a bit hyperbolic, understand that your landlord isn’t there JUST to make your life miserable. They are there to set up and enforce the rules of living at your building so that everyone can have a good experience.
So, if you want to keep your apartment safe and secure, try to pay what you can to your landlord when you can, talk to your neighbors about doing the same, and just be a good human being during this time.
During the Coronavirus, and the time period in which we are seeing a moratorium on rent payments take place, you probably don’t have to pay rent. But that doesn’t mean you have carte blanche to just do whatever you want with no fear of being evicted.
If you are participating in illegal activities, harassing other tenants unnecessarily, or generally causing mayhem, you can still be evicted.
The process may be a bit slower, but I can guarantee you that the police and court system are not going to look too kindly on having to deal with an unnecessary issue like this during these times.
So, keep your apartment and family safe, be a great tenant, help your neighbors when you can, fight boredom like it’s the plague, and we will all get through this time together!
