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.

California Lawmakers Seek to Suspend Costa Hawkins

In the latest rental market news, lawmakers in California are seeking to pressure Governor Gavin Newsome to suspend Costa Hawkins, the 1995 Rental Housing Act.

How? There is currently a new bill on the November 2020 ballot called the Rental Affordability Act which seeks to expand rent control in California but the sponsors of this bill have stated that they will withdraw it “in the spirit of cooperation” if the Governor suspends Costa Hawkins.

Costa Hawkins Has Been Under Fire Since Day One

The latest attack on Costa Hawkins is nothing new in California considering that the law has literally been under fire since the day that it was passed back in 1995.

As recently as November 2018, a bill titled the Affordable Housing Act sought to suspend Costa Hawkins, but it was defeated by voters.

With COVID-19 leaving a major impact on California’s economy, and rental market, millions of people in the state are now unemployed so it’s easy to see why Costa Hawkins is in the sights of lawmakers.

There’s no doubt that the state faces hard choices since there potentially are millions of renters who won’t be able to pay their rents in the months ahead but is suspending Costa Hawkins the answer?

State-wide rent control was already passed into law last year when the Governor signed AB 1482, a law that caps limits rent increases at 5% per year plus inflation until January 2030, but most politicians in the state feel that California isn’t doing enough to protect renters.

As we get closer to November 2020, momentum will continue to build in support of the Rental Affordability Act and unless Governor Newsom suspends Costa Hawkins, we can expect this bill to be on the ballot for the November 2020 election.

What’s Next?

The best thing that voters in California can do is to educate themselves on the perils of pushing for more rent control in the state because eliminating Costa Hawkins, or passing the Rental Affordability Act, will only produce dire economic consequences in California that will last for years to come.

Even though the rental market in California needs massive change, the key to that change isn’t rent control.

What most people who support rent control measures don’t know is that rent control has a history of failure in every state that it’s been implemented.

Any time rent control is passed, supply always dries up and builders will not build more rental units because they are turned away by price controls.

California has a supply and demand problem that will not improve until more rentals are built state wide to meet the demand of renters.

Contact GoldenWest Management

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.

California Rental Market News

There’s no doubt that California landlords have had a rough year in 2020 which started on January 1st when AB 1482, California’s “defacto” rent control bill was passed.

Following AB 1482, came Coronavirus, the deadly virus that’s impacted the entire world and has taken the lives of hundreds of thousands of people worldwide and shut down the California economy.

Sadly, COVID-19 has also been responsible for unprecedented unemployment in California and millions of renters across the state being unable to pay their rents.

With everything that’s happening due to the virus, you’d think that landlords have enough to deal with but, landlords have another issue on the horizon in the form of a new bill that’s been proposed, AB 828.

A row of new townhouses or condominiums.

What Is AB 828?

Proposed by Assemblyman Phil Ting, of San Francisco, if approved, AB 828 would force landlords in the State of California to reduce rents by 25%.

This bill has left every landlord in the state of California scratching their heads because of the obvious fact that AB 1482 already puts robust rent control measures in place so why do we need more legislation that’s only going to adversely impact landlords even more?

If it’s passed, AB 828 would force landlords to reduce rents by 25%, even if a tenant can’t show that they’ve had a financial hardship due to Coronavirus. This bill would also allow the courts to set rents and change agreements that are already in place.

What’s even worse is that under AB 828, nuisance tenants would also be protected by this bill and landlords would not have the ability to do things that they’ve done in the past like file unlawful detainer complaints.

How Can AB 828 Be Stopped?

Thankfully, as long as California is part of the United States, every person who lives in the state has the right to reach out to their elected representatives and have their voice heard.

To stop AB 828, landlords across the state are encouraged to reach out to their elected representatives as soon as possible and do their parts to stop this legislation from being passed.

Contact GoldenWest Management

To learn more about AB 828, or to speak with us about our property management services, contact us today at (866) 545-5303 or click here to connect with us online.

What Are Landlords and Tenants Supposed to Do About Rent?

In the last 30 days, coronavirus has been responsible for changing the economy and rental market across the United States because most people who were renting before coronavirus, and working steadily, are now laid off and may be unable to pay their rents.

This is a problem that every city in the United States is facing right now, especially in cities like Las Vegas that rely heavily on the tourism industry.

Even though landlords and tenants may face difficult times ahead, some solutions can be utilized to help them make it through the coming months.

We’re All in This Together

During a recent interview, HUD Chairman Dr. Ben Carson said that both landlords and tenants are going to have to work together to make it through the coming months as coronavirus has affected everyone in some way.

What does this mean? Tenants should contact their landlords immediately if they are unable to pay their rent and work out a payment plan so that they can pay the landlord some money now, while deferring the remaining balance on their rent over 12 months.

Every Situation Will Be Different

Every tenant’s situation is going to be unique following coronavirus, there may be some tenants who will be able to go back to work next month while others may not be able to work for another 6 months.

Landlords should be willing to work with their tenants to come up with the best solution for them that will help them to make it through the coming months.

What Should Owners Do with No Revenue Coming In?

Owners should contact their lenders immediately if they are unable to pay their April mortgage to see if they qualify for a forbearance, or they should pursue one of the other ways to build cash reserves that we mentioned in our previous blog post.

Many people are projecting that Coronavirus could last until June so every owner must take action now and be willing to work with their tenants while they focus on building cash reserves so they can survive the coming months.

Rental Market Projections for The Next 60-90 Days

At GoldenWest Management we project that 20% to 30% of tenants will not be able to pay all or a portion of their rent while there may be tenants who are unable to pay rent and will want to turn in their keys to their landlords.

April and May are going to be tough months for owners and tenants for sure, we hope that coronavirus will be gone by June and the economy will be back on track but that may not be the case if the virus lasts into the summer months.

We encourage both owners and tenants to stay on top of what’s happening by following our blog and other trustworthy news sources like local city news or information from organizations like the Department of Housing and Urban Development.

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

March 2020 Rental And Sales Market Update

In a recent interview, Roy True, business manager of GoldenWest Management met with Brad Seaman of Keller Williams in San Diego, and Ryan Loeding with Keller Williams in Phoenix, over the internet, to discuss what’s happening with the rental market and what renters and owners can expect in the coming weeks.

Coronavirus and Its Impact on The Rental Market

As of March 30th, 2020, the economies in San Diego and Las Vegas have been severely impacted by coronavirus as “non-essential” industries have been shut down.

This means that the hospitality industry, restaurants, Gym’s, nightclubs, movie theaters, and other businesses are now closed and the result has been a dramatic increase in unemployment claims.

The situation is different in Phoenix where businesses have largely remained open during coronavirus thanks to “suggested restrictions”, but that could change as Governor Ducey is just now starting to take action and has ordered schools in the state to be closed until April 30th.

With more people unable to work due to coronavirus, most owners will likely start hearing that their tenants will be unable to pay their rents by April 1st and that number could increase dramatically by May when economic stimulus checks have come and gone, and the rent payment is due again.

Las Vegas has been hit the hardest economically from coronavirus because the city relies heavily on tourism and hospitality. Sadly, with most people being laid off, Vegas could likely see 20%-30% of renters report that they will be late or unable to pay their rent in the coming weeks.

What Should Owners Do?

Now that California and Nevada have statewide moratoriums on eviction, the big question is what should owners due when there’s no money coming in from rent to cover their mortgage and other bills?

Work with Your Tenants – Start contacting your tenants now to see if they will be able to pay their rents next month. If they are unable to pay rent, offer them a payment plan so that they can pay what they can pay now while paying the remaining balance on their rent over the course of one year.

Build Cash Reserves – If you don’t have cash reserves saved up now, it’s best to take action to start building your reserves by choosing options like a cash-out to refinance loan.

Your goal should be to have at least $3,500 in cash reserves per multifamily tenant and up to $5,000 in cash reserves for single-family tenants because this money will also help you to cover repairs on your properties when needed as well.

Consider Refinancing or HELOC – As recommended by Ryan, another option is to consider using is a home equity line of credit. Yes, the credit market is tightening but if you pull the cash out of the home equity line of credit and put it into savings, the bank can’t touch it.

Talk with Your Lender Before Things Get Bad – You should speak with your lender ASAP and find out if they have any options for you like a forbearance to keep your rental from foreclosure. Being proactive now and reaching out to your lender now will save you the hassle of having to wait to wait for them to call you back once they do start getting a lot of calls.

The fallout from coronavirus (COVID-19) is evolving because it’s affected each rental market differently so during this time it’s important to focus on getting your news from qualified sources, avoid fake news, and social media posts that promote hype.

Remember, we’re all in this together and until coronavirus is over it’s up to owners and tenants to work together to create an outcome that’s best for everyone.

Contact GoldenWest Management

For more information about what’s happening with the rental market in San Diego, Phoenix or Las Vegas, during coronavirus, or to speak with us about the property management services we can offer you, contact us today by calling (866) 545-5303 or click here.

Las Vegas Real Estate Rental Market Improves

Some new data recently came out about the Las Vegas real estate market.  According to MPF Research, an industry-leading market intelligence division of RealPage, Inc, real estate rental revenues for the apartment market grew 3.6% in Q4 of 2013.  Occupancy rates jumped to 92.6%, and rents were up 1.9%.  These weren’t fantastic numbers for a region that is still in recovery from the real estate market bust of the previous decade.  However, they are positive signs that the market is slowly inching back.

 

 

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