Arizona Rental Market Update- Statewide Eviction Ban Extended Until October 31st

The latest news affecting the Arizona Rental Market is that Governor Ducey’s eviction ban was recently extended on July 22nd to October 31st, 2020.

Governor Ducey’s move to extend the eviction ban continues his effort to help Arizonians avoid eviction if they lost their jobs due to Coronavirus or contracted the virus and are unable to work.

Most housing advocates applauded the Governor’s move since a large portion of the money from the Cares Act to help people pay their rents and mortgages hasn’t been dispersed yet but the big thing that’s not being talked about is how the eviction ban in Arizona is affecting landlords.

Sadly, landlords in Arizona are feeling the same financial strain of evictions just like landlords in California and other states because the money that landlords depend on to cover their mortgages, property taxes, utilities, and other essential expenses is no longer there.

Landlords are often classified as being “heartless” by some housing advocates but the truth is that rental housing is a business, and with income coming in that business cannot survive.

More Landlords Are Challenging The Eviction Ban In Arizona

As the eviction ban continues, more landlords across Arizona are stepping up to challenge it although their efforts are being defeated in the courts.

A Phoenix landlord recently sued the Governor claiming that the Arizona Eviction Moratorium was unconstitutional because it prevented them from evicting a family from their rental property that owed more than $4,000 in unpaid rent.

The landlord’s lawsuit was quickly rejected by a Superior Court judge in Maricopa County but, it’s likely this won’t be the last lawsuit against the eviction moratorium that we will see in the coming weeks.

Thankfully money may be on the way for tenants in the Arizona Rental Market as negotiations are underway between Republicans and Democrats to release another economic stimulus. This would most likely pay the same amount of $1,200 per adult as last time, but those negotiations are still in the early stages so it’s likely that we won’t see that money go out until late August or early September.

Contact GoldenWest Management

For the latest news affecting the Arizona rental market, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.

82% Of Southern California Renters Paid Their Rent On Time In June 2020

Thanks to recent data from the U.S. Census Bureau, and a report from the Daily Bulletin, we know that eight of every 10 tenants in Southern California paid their rent on time during June.

In their “pulse survey”, the Census Bureau survey showed that just 5% of tenants indicated that their rent was deferred.

Federal aid, like the recent stimulus checks, have enabled most tenants in Southern California to stay on track with their rent payments while others have benefitted from the eviction ban and have been able to defer paying their rent now for months.

What’s Comes Next For The Southern California Rental Market?

With the $600 per week in Federal unemployment benefits from the CARES act potentially coming to an end this month, it’s possible that the loss of those benefits, combined with an end to the eviction moratorium on September 30th, could bring a wave of evictions this fall unless more is done to help renters.

As of July 23rd, 2020, lawmakers in Washington are in negotiations for more stimulus aid which could potentially include an extension of the CARES Act unemployment benefits but that extension could be less than the $600 per week that people are receiving now.

Under the CARES Act, renters are protected from eviction until July 25th, 2020. Unless the CARES Act eviction moratorium is extended, tenants in California will only have until September 30th to avoid eviction because that’s when the statewide eviction moratorium is set for expiration.

What About Landlords?

Landlords also need financial help because, for those landlords in California that have been unable to collect rent since March, this represents a loss in rent totaling more than $1 billion.

So far, lawmakers in California have proposed a variety of bills that are aimed at helping the rental market get back on track including a bill that would potentially give tenants until 2034 to repay rent while encouraging some owners to forgive back rent in favor of tax deductions.

Sadly, what’s often lost in the discussion is the impact of Coronavirus on smaller “mom and pop” landlords, many of which who have been unable to collect rent from their tenants in months. Those smaller landlords can’t just walk forgive rent when they are already walking a financial tightrope, using their savings or retirement funds just to cover their mortgages.

It’s more likely that the State of California could propose an eviction relief plan which encourages landlords and tenants to enter it voluntarily, creating a favorable payment plan that tenants could use to get their rent payments back on track.

Contact GoldenWest Management, Inc

At GoldenWest Management, we offer full-service property management in California, Arizona, and Nevada.

Our company saves owners the time, money, and hassle of managing investment properties themselves.

To learn more about the services we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.

What Are The Unseen Costs Of California’s Eviction Moratorium?

One common theme that’s been played out in the media across California over the last three months is that landlords should cancel rent, and everything possible should be done to help tenants.

As the State of California continues to struggle with Coronavirus, the eviction moratorium has been extended until the end of September, giving some tenants the ability to continue living rent free.

Even though the eviction moratorium was necessary during the early days of Covid-19, to keep people off the streets and slow the spread of the virus, the reality is that it’s been brutal for landlords across the state.

The Unforeseen Costs Of California’s Eviction Moratorium

One common theme that’s been played out in the media across California over the last three months is that landlords should cancel rent, and everything possible should be done to help tenants.

Sadly, even though there are some institutional investors own rental properties across California who have the ability to forgive back rent, many of the landlords in the state that have been hardest hit are smaller, “mom and pop” landlords who rely on the monthly rent from their rental properties to survive.

In the past, eviction has always been a legal protection that landlords could fall back on when their tenants didn’t pay their rents, but now that some tenants have not paid in months, eviction is not an option, and the only option landlords have is to wait until the eviction moratorium has ended.

Could more landlords choose to forgive their tenants back rent in favor of tax deductions or other incentives? While some landlords have been able to do just that, smaller landlords can’t walk away from money owed that easily. After not collecting rent for months, they face the real possibility of mortgage defaults in the coming weeks.

What Comes Next?

As of July 2020, more landlords across the State of California are challenging the eviction moratorium in the courts. This has led the Governor to leave the matter in the hands of local municipalities, so it’s unlikely that we will see any legal action that stops the eviction moratorium any time soon.

The State of California continues to “kick the can” and push off evictions for a few more months in the hope that the economy will improve and more people will go back to work but the opposite is happening right now.

More industries are going into lockdown in California, schools remain closed, and it’s unlikely that the battle against Coronavirus will be won anytime soon.

With the next expiration of the eviction moratorium approaching on September 30th, along with elections in November, this fall will likely be one that everyone remembers since it’s a time in history when everything is on the line.

Contact GoldenWest Management

To learn more about what’s happening with the rental market in California, or to speak with us about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.

AB 1436 – Learn More About The Latest California Rent Protections Bill

With the end of the State-wide eviction moratorium in California fast approaching, lawmakers have been scrambling to come up with ways to avoid a possible “eviction tsunami” that is poised to hit California once landlords are legally able to move forward with pursuing evictions in the courts once again.

Even though we reported recently that Doug Michie, a Ventura based lawyer, filed a lawsuit to stop the State of California’s eviction moratorium, this move didn’t last long.

AB 1436 – Could Allow Tenants To Delay Paying Back Rent For 15 Months

Assembly member David Chiu from San Francisco authored AB 1436, a bill which states that tenants cannot be evicted due to their unpaid rent which was accrued during the COVID-19 / Coronavirus emergency.

The bill also states that tenants will have 15 months after the end of Coronavirus to pay back all of their accrued rent while giving landlords the option to pursue eviction if their tenants miss paying rent in the future.

Even though many landlords in California have been making payment arrangements with their tenants who are behind on their rent. AB 1436 also allows landlords and tenants to make written repayment arrangements while adding safeguards so that tenants don’t end up owing more money than what they accrued during COVID-19.

What About Smaller “Mom and Pop” Landlords?

AB 1436 sounds like a fair and reasonable bill but is keeping the courts closed to aggrieved landlords the right thing to do?

With many “mom and pop” landlords in California depending on the income that they receive from their rental properties, it’s easy to see that AB 1436 could potentially create a “wave of defaults and foreclosures” since most landlords won’t be able to survive if they cannot collect the rent that’s owed to them.

July 2020 Is Going To Be A Vital Month In California’s History

Lawmakers are intent on stopping mass evictions but with little effort being made to protect the rights of owners, the future for the rental market looks bleak in California, to say the least.

If owners start defaulting, or selling their rental properties, this could lead to a further strain on the supply of rental properties in California and higher rents than what we have right now.

Regardless if you support the plight of tenants in California, landlords, or both, July 2020 is shaping up to be one of the most important months in California’s history as lawmakers work hard to stop mass eviction from happening in August.

With the end of California’s eviction ban scheduled for July 28th, it’s likely that we will see a “flurry of activity” in July as lawmakers work hard to protect tenants from evictions but that legislation could also adversely affect owners at the same time.

Either way, we encourage you to follow our blog for the latest updates on what’s happening in the California rental market so that you will be able to read the latest news affecting you.

Contact GoldenWest Management

Do you need property management for your California rental property? Or do you own rentals in Las Vegas or Phoenix that need property management as well? If so, we can help!

Our company specializes in property management and has the best property management team that will serve all of your needs. To learn more about the services that we can offer you, contact us today by calling (866) 545-5303 or click here to connect with us online.

City of San Diego Eviction Moratorium Extension Approved Until September 30th

SAN DIEGO, CA – With tenants continuing to struggle financially during the Covid-19 pandemic, the San Diego City Council approved an extension of the city’s eviction moratorium until September 30th.

Since the City of San Diego’s eviction moratorium was slated to expire on 7/1, the city council approved the extension just in time. The extension of the eviction moratorium gives residents who are struggling financially due to the pandemic time to contact their landlords in writing, one day before their rent is due, to notify them that they are unable to pay.

About The San Diego Eviction Moratorium

Tenants who are struggling financially and unable to pay rent must provide proof that their financial hardship is due to the Covid-19 pandemic. Once they do so, landlords are encouraged to work with their tenants to come out with a payment plan with their tenants so that they can collect some rent rather than nothing.

Besides protecting tenants who are struggling financially during the Covid-19 pandemic, the City of San Diego eviction moratorium also protects business owners who are unable to pay their lease payments or rents during the pandemic.

The City of San Diego eviction moratorium has been in effect now since March 25th, and the current extension gives residential and commercial tenants more time to get back on track financially plus make financial arrangements with their landlords if they are unable to pay their rents due to the Coronavirus pandemic.

City Council Members also voted to establish a rental assistance program that’s been funded with more than $15 million in Covid-19 relief funds from the Federal Government.

What About Owners?

There’s no denying that the Covid-19 pandemic has affected tenants in San Diego, and across the United States, but the big question is what’s being done to help owners?

Since the beginning of Coronavirus, and lockdowns across California, the consensus among most lawmakers in California is that landlords can “take it on the chin” and make it through months without collecting rent.

Sadly, with most owners in California being mom and pop landlords who rely on the income from their rental properties, their incomes have been greatly reduced and more than $1 billion in rent has not been collected.

As we move into the summer months, more owners across the state are uniting to challenge the State of California’s eviction moratorium since a severe economic burden is being placed on the backs of landlords.

Yes, the eviction moratorium is a critical public health protection that’s keeping people off the streets but more work needs to be done to help landlords in California avoid going into default as a result of the Covid-19 pandemic.

Contact GoldenWest Management

For more information about what’s happening with the San Diego rental market, or to speak with us about our property management services, contact us today by calling (858) 779-0577 or click here.