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.
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