November 21, 2024

Rental Crisis

Although this video depicts the rental crisis caused by the eviction moratoriums in Illinois, the exact same thing is happening here in California!

 

I’ve written about this before and that the end of this post up at the links to my prior articles about these government mandated rental moratoriums.

In a nutshell, I think it’s very disingenuous for the government to tell the citizens that they are going to take care of them in this crisis by placing rental moratoriums for people who have been affected or impacted by the virus. Sure, it’s a tough situation and if the government really wanted to take care of the people affected, the government should pay for the cost involved and not just shift the cost on the backs of the landlords.

Rental Crisis

California housing crisis - Hidden California Tax Bomb - Rental Crisis

If you think about it, this is really just an example of communism, where the government is taking other people’s money and/or property and giving it to others.

I’ve said it before, but I think it needs to be set again, the only fair way to deal with this tragic situation is for the government to provide vouchers to tenants who are affected, and these vouchers can be given to the landlords who could redeem them with the state for the full rent on their properties. Obviously, it would be incumbent on the tenants to repay this money not to the landlords but to the State. Doing it this way would be much fairer than what is happening at the current time. Landlords have to contend with their own bills to maintain their properties, but in many cases are getting no rent to compensate them and just recently here in California, the tenants now just have to pay 25% of their rent to avoid eviction.

Even though the California state government keeps repeating that any rents not paid are still due the landlord, in the real world, as the past due amounts of rent climb, it makes it increasingly difficult, if not impossible, to pay back the thousands of dollars in past due rent that the landlords are owed. Personally, I think all it does is create an incentive for the tenants  to move out of the units and perhaps even move out of the states, so that they don’t have to pay back the huge sums of past-due rents.

Who’s going to be left holding the bag in the situation? Sure, the state government says that the landlords could go after the tenants for unpaid rent, but, legal actions are going to cost the landlord money and is no guarantee that they’ll ever be able to collect. If a California tenant moves out owing thousands in past-due rents, and relocates to another state, the landlord would have to hire an attorney in California as well as an attorney in the state where the tenant has relocated to, in order to try to collect. Naturally, this is assuming that the tenants who have skipped out, can be located and they have some type of job that the landlord may attach their pay in order to collect unpaid rents.

In my scenario, the tentannt owes the money to the State and the State is better equipped to track down tenants who may disappear, and get legal judgments against them, not only in the state, but in what ever state they moved to.

If you step back and look at this scenario that’s playing out here in California with the rental moratoriums always being extended at the last minute, you can see how blatantly unfair this whole situation is toward landlords!

In my scenario, where the tenants get rental vouchers from the State it’s very similar to people going on welfare when they can pay their own bills. The way things are now in California it is just a blatant taking of property and income from landlords by preventing them from exercising their legal rights for eviction of nonpayment of rent.

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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