September 18, 2024

California rental moratorium disaster

California real estate - New California Real Estate Tax - California rental moratorium disaster
California Rental Moratorium

Well, as the year is coming to an end so is the California rental moratorium . . .
Or so you would think! The latest information that I’ve heard is that there is pending new legislation going to be introduced this coming week to once again extend the California rental moratorium, but not just a few more months, but for the entire year of 2021!

If this new legislation extension of the moratorium goes through (I have little doubt that it will), this will ensure that many small mom-and-pop landlords will be forced into foreclosure or just have to walk away from their rental properties.

California rental moratorium disaster

San Diego condominiums for sale, San Diego townhome for sale - California rental moratorium disaster

By this time, I would imagine that California property owners are finally realizing that the state of California considers you evil capitalist. And naturally, in the California socialist paradise, it’s fine to make rules that in effect seize people’s assets and turn them over to the income disadvantaged.

I understand the proposed legislation will basically extend the current moratoriums requirement of only having to pay 25% of your rent if you have been affected in any way by the COVID 19 pandemic.

I’ve said it many times before in my articles about this unlawful seizure of private property by the State, but I guess it’s worth repeating for those who believe that the California government is fair and equitable to all its citizens. What I’m talking about here is the fact that this is a terrible situation but one in which, if the California government really wanted to help out, they should’ve done so in a program similar to the current welfare programs. Basically, tenants who have been affected, should apply to the state of California for a voucher to give to the landlord so the landlord receives their full rental payment, while the affected tenant owes the state of California the unpaid rental amount. But, instead of doing this, California officials keep saying the amounts that are not paid are still due, and once this is all over, can be collected by the landlord. Although true, the reality of the situation shows that as the amounts of past due ever-increasing unpaid rent, it is incentive for when this finally ends, tenants will move and just disappear, or move out of state and make it nearly impossible for the landlord to cut ever collect the thousands in back to rental payments.

But yet, high government officials keep touting the fact that they are helping renters who have been affected by this moratorium . . . When in actuality this statement is a half truth, because the real people who are helping, perhaps I should say being forced to help, are all the California landlords!

What really gets me irate about the situation is that this is a prime example of where government intervention in a situation actually makes the entire situation worse than if they would’ve stayed out of it entirely! The government already provides welfare, free and subsidized housing and even free food via the California fresh program. But, here when it comes to Covid 19, the California government has decided the easiest way to go, is the seizure of other people’s assets and money instead of expanding their already huge welfare systems. Yes, it’s the tens of thousands of dollars that are piling up in nonpayment of rent that are exasperating the problem for all California landlords and especially the small mom-and-pop landlords.

There are a lot of good landlords who save like crazy and use housing as an investment. They take good care of their properties. But the laws are all about protecting the tenants. Guess what buttercup? If landlords lose their homes, tenants will be homeless. Banks who own properties don’t rent to tenants . . . They evict them!
Some of my prior posts on this topic:
https://brokerforyou.com/brokerforyou/california-eviction-and-foreclosure-bans/

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