Arizona Eviction Moratorium Update

2020 has been a tough year for both landlords and tenants in Arizona because of COVID-19 and the subsequent Arizona eviction moratorium that has been active since March.

With the end of 2020 around the corner, many people are wondering what the latest information is on the eviction moratorium in Arizona, as well as what the rental market is going to look like once it’s finally allowed to expire?

Governor’s Ducey’s Eviction Moratorium Is Active Until 10/31

Governor Doug Ducey signed a 120-day eviction moratorium in late March to aid those affected by the COVID-19 pandemic. This eviction order was extended in July until October 31st, 2020.

In addition to Governor Ducey’s executive order (EO), the Center for Disease Control has issued a separate eviction moratorium. The CDC’s moratorium is supposed to protect tenants from eviction due to nonpayment through December 31st, 2020.

To qualify for the CDC’s eviction moratorium, tenants must not make more than $99,000 per year and sign a declaration stating that they are unable to make their rent payments due to a substantial loss of income. They must also pay at least 25% of their monthly rent each month.

It’s important to note both Governor Ducey’s and the CDC’s moratoriums both only protect evictions for those who meet the above criteria and would be evicted due to nonpayment. Evictions due to lease violations, damages, and causes other than nonpayment are all still valid.

Some landlords are challenging the eviction protections in place by taking their tenants to court in order to move forward with evicting them.

Some tenants are getting evicted for nonpayment if they are unable to complete the CDC declaration before the judgment is issued. In other cases, tenants are getting evicted if the landlord can prove that their tenant’s statement on the declaration was “materially inaccurate”.

What Can We Expect Until January 2021?

Governor Ducey’s eviction moratorium may likely be extended until January 2021, providing tenants with eviction protections through the end of the year.

The Governor likely doesn’t want to have mass rental evictions during the holidays. However, even with an extension to the moratorium, evictions will eventually have to be allowed to happen like normal.

Until the eviction moratoriums are ended permanently, we can expect to see more landlords challenge the Governor’s EO, along with the CDC eviction ban,

As of today, landlords, the Multi housing Association, and the Manufactured Housing Communities of Arizona are looking eager to overturn the Governor’s eviction moratorium. The general feeling is that the eviction moratorium is unconstitutional and violates an owner’s contracts with their renters.

In some cities, landlords are winning in the courts and evictions are increasing. This can be seen in Phoenix, where evictions jumped to 2,863 during September. This was an increase from 2,171 evictions in August and 1,768 evictions in July. (Source)

Most Landlords Expecting Foreclosure ‘Avalanche’

Even though evictions are climbing in Phoenix, many rental property owners have seen other Arizona courts decline to hear their eviction cases. Without being able to fill their properties with paying tenants, many landlords will struggle to make their mortgage payments. With little progress on evictions in Arizona, there is concern the state will see a foreclosure ‘avalanche’ in early 2021.

This foreclosure ‘avalanche’ could be damaging to the rental markets as a whole.

Contact GoldenWest Management

At GoldenWest Management, we manage rental properties in Arizona, Nevada, and California. This gives us a firsthand perspective on what’s happening in each of these rental markets.

Our company offers ‘boutique’ style property management. This means, regardless if we manage a large portfolio of investment properties or one rental property, each of our owner clients can count on us treating them like they are our only client.

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

What Is Proposition 21? Learn More About California’s Latest Efforts To Expand Rent Control

Love it or hate it, rent control continues to be a ‘hot button’ issue in California, Lawmakers continue to push for full rent control across the state while most landlords oppose it.

California recently moved one step closer to full rent control, bypassing the 2019 Tenant Protection Act, a bill that limits rent control to 5 percent plus inflation for 10 years.

Most lawmakers felt that the bill doesn’t do enough to protect tenants. This is why they keep pushing for full rent control across the state.

A “yes” vote on Proposition 21 would allow local governments to enact rent control on housing that was first occupied over 15 years ago, with an exception for landlords who own no more than two homes with distinct titles or subdivided interests.

Will Voters Support Proposition 21?

The big question with Proposition 21 is: will voters support it? Especially since they overwhelmingly opposed Proposition 10, the last effort to enact full rent control across California, just two years ago?

As with 2018’s Prop 10, the biggest objection to Proposition 21 is that it will slow down the construction of new rental housing in California. Supporters of the measure feel now is the right time for full rent control across the state due to rising housing costs.

Voting no on Proposition 21 would continue to keep Costa Hawkins alive, continuing to prohibit rent control on housing that was first occupied after February 1, 1995, and housing units with distinct titles, such as single-family homes.

Why Does Proposition 21 Matter to Property Owners?

The main problem the State of California and other states face with their rental markets is a supply and demand issue.

More housing needs to be built across California to keep up with the demand. With single-family residential starts down 10% and multifamily construction down 6% from 2019, it’s likely that California will continue having a very competitive rental market for the coming years.

Proposition 21 affects homeowners just as much as tenants. Homeowners who rely on the income from their rental property can suffer financial strain without the ability to raise the rent by demand.

Contact GoldenWest Management

At GoldenWest Management, we stay on top of the latest information affecting the rental markets in California, Arizona, and Las Vegas specifically because we manage properties in each of these states.

Our company takes pride in providing our owner clients with boutique-style property management. This means that we treat every client like they are our only client and provide them with the personalized service that they deserve.

To learn more about our property management services, contact us today by calling (866) 545-5303 or click here to connect with us online.