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.

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.

Eviction Moratorium – What’s Happening In Phoenix And Las Vegas?

Since March 2020, Coronavirus (COVID-19) has changed the rental market nationwide because millions of people who once were working were forced to “shelter in place”, or they lost their jobs are unable to work.

In response to the pandemic, many cities including San Diego, approved eviction moratoriums.

We know that San Diego’s eviction moratorium has been extended until July 28th, the big question is what about Phoenix and Las Vegas? Will their eviction moratoriums be extended too?

In this article, we will provide you with information on the eviction moratoriums for Phoenix, Las Vegas, and also information we can expect from both cities in the coming months.

Nevada’s Eviction Moratorium Extended Until June 30th

As of today, we know that the State of Nevada’s eviction moratorium has been extended until June 30th, essentially mirroring what’s happening with the city of San Diego.

The Attorney General for Nevada, Aaron D. Ford has stated that it’s his goal to help people stay in their homes and prevent landlords from evicting tenants who may be unable to pay their rents.

Thankfully, the eviction moratorium is working, but tenants who are unable to pay their rents are encouraged to reach out to their landlords to discuss payment arrangements so that landlords can have at least a portion of their tenant’s rents that due and avoid having their rental properties go into foreclosure.

Could we see an extension to the Nevada eviction moratorium? The answer to this question is it’s anyone’s guess. Since more tenant’s groups across the country are putting pressure on landlords to stop evictions, we may likely see another eviction moratorium extension at least through the summer months to avoid a wave of evictions.

Phoenix Eviction Moratorium Extended Until July 23rd

Arizona residents who have been dealing with financial hardship due to COVID-19 can take heart that the eviction moratorium is extended until July 23rd.

Even though the eviction moratorium in Arizona is extended until July 23rd, the reality is that the burden of proof is one the tenant to prove that they have an economic hardship due to COVID-19.

If a tenant in Arizona cannot prove economic hardship due to COVID-19, the court can still move forward with evicting them for nonpayment, and law enforcement can also remove a tenant for nonpayment of their rent or breach of contract.

Contact GoldenWest Management

For more information on what’s happening with the rental market in San Diego, Phoenix or Las Vegas, 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.

San Diego’s Eviction Moratorium Extended June 30th, 2020

The City of San Diego extended its eviction moratorium through June 30th, 2020, to protect renters and businesses who have been impacted by Coronavirus, citywide lockdown and the closure of essential stores during the Pandemic.

This move reflects similar legislation nationwide as other cities and states have extended their eviction moratoriums through June 30th and even farther into summer.

Financial Aid To Tenants And Landlords Is Still Being Considered

There’s no doubt that both tenants and landlords in California are struggling right now as Coronavirus has impacted just about everyone from all walks of life.

Thankfully, as the City of San Diego continues returning to “business as normal,” the city is doing everything it can to help landlords and tenants following Coronavirus but significant challenges life ahead.

With an unemployment rate in California, that’s close to 20%, one of the biggest challenges is for the city and state to help people who have been unemployed for the last three months get back to work while also assisting landlords with financing so that they can avoid mortgage default on their rental properties.

Sadly, as San Diego city council member Scott Sherman recently said, an eviction moratorium extension only “kicks the can” down the road, or delays evictions, as renters continue stacking up debt with their landlords due to back rent that they may be unable to pay.

Coronavirus Highlights The Importance Of Owners And Tenants Working Together

Even though the Coronavirus Pandemic and the following eviction moratorium have been worse case scenarios for the City of San Diego, the good news is that during May, or month #2 of the lockdown, roughly 82% of renters in the San Diego area paid their contractual rents.

The percentage of tenants who paid their rents in May could be due to final stimulus payments, unemployment, and other benefits kicking in. As we enter the month of June, there’s hope that we will see similar statistics from renters.

Owners and tenants have been making the best out of a bad situation by working together during coronavirus, and this explains why the rental market in San Diego isn’t as bad as many people thought it would be.

What Happens After June 30th?

What’s going to happen after June 30th? The answer to the question is, it’s anyone’s guess. Still, the reality is that because the City of San Diego faces a possible “epic wave” of evictions, if the moratorium isn’t extended well past June 30th so it’s like that we may see another extension in the weeks ahead.

Contact GoldenWest Management

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

Eviction Moratorium San Diego – Learn More About How Renters Are Protected During Coronavirus

Coronavirus has changed the economy and rental market in the last month because tenants that were once able to pay their rents on time are now unable to pay rent since they have little to no income coming in.

Thankfully, the City of San Diego passed a moratorium on evictions which means that any tenant who is facing eviction because they cannot pay their rent will be protected from eviction

The Eviction Moratorium Will Last Until May 31st, 2020

Tenants who are unable to pay their rent must notify their landlords immediately, and provide proof of their financial hardship as well via email or text since the city considers those to be valid forms of written notice.

Besides notifying their landlords that they are unable to pay rent, San Diego area tenants must also provide their landlords with financial documentation which shows they are unable to pay rent due to coronavirus (COVID-19).

The financial documentation that a tenant should provide their landlord with may include bank statements that show a loss of income or documentation which shows that they’ve had to pay significant out of pocket expenses related to coronavirus.

Any tenant who doesn’t notify their landlord that they are unable to pay rent within one week of its due date, the landlord may move forward with enforcement actions or eviction proceedings that are in accordance with state and local laws.

How Long Do Tenants Have To Pay Back The Rent?

Any tenant who is protected by the City of San Diego’s eviction moratorium will still have to pay back the back rent that they owe within 6 months, or longer if the deadline is extended by the Governor.

If a tenant moves out before paying the back rent that they owe, they will legally be required to pay what they owe when they move out unless their lease states otherwise.

Contact GoldenWest Management

At GoldenWest Management we understand the challenges of these times and are here to help!

For more information about what’s happening with the local 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.