There is no doubt a national crisis upon us when it comes to health, work and our homes. Millions of Americans are faced with joblessness amidst the current pandemic. With the loss of income and/or the loss of health, a domino effect has occurred and has impacted almost every area of our lives.

Currently we all are experiencing tension in the face of an uncertain future. Whether that be health, career or home, we all have something at stake. When it comes to the housing market, there are several points of impact, from the renter to the investor or landlord.

For landlords, renting out property is a means of revenue. For some, this is their only means of income. Renters and landlords are both facing dire circumstances from either side of the spectrum.

Thankfully, there are organizations getting involved and working hard to see that individuals on all sides are being represented. Under One Roof Coalition as well as FFREIA are  pushing forward to help both tenants and property owners. Through the National Apartment Association, we are asking Congress to help renters & property owners to recover from COVID-19 and the housing issues it’s caused.

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Landlords that rent out their properties for off-campus housing may be facing a bind. The COVID-19 pandemic has caused world-wide disruption in countless ways, creating economic issues. The housing market is no exception.

When it comes to student loan housing, landlords face the present challenge ahead. Some college students have left to be with their families and others have lost their jobs that pay for rent. This causes a dilemma for landlords that house off-campus students across the nation.

While students are trying to get out of contracts early, this creates a situation for the landlord. How will landlords bridge the gap?

For landlords that count on the rent to pay the monthly mortgage on the rented property are in a tough spot.

There is certainly compassion for students and landlords stuck in this quandary. If students are released early from their contracts, landlords bear the financial brunt of  the truncated agreement. 

“As the student housing industry grapples with how to respond to the pandemic, there is much uncertainty with how this will impact markets and leasing velocity,” says Christian O’Lone, regional property manager with DMG Investments. As stated via stud
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New York State, among other states, has taken action to halt evictions during the current pandemic. New York’s Chief Administrative, Judge Lawrence Malks, stated in a memo that starting Tuesday, eviction proceedings and pending eviction orders will be suspended statewide until further notice.

The White House also issued a press-release stating HUD, Freddie Mac and Fannie Mae will suspend foreclosures to the end of April. If the health crisis continues at this level, that won’t be enough. 

That’s roughly one monthly mortgage payment for some mortgages. 

If evictions are postponed indefinitely, but mortgage lapse has a time limit until the end of next month, the gap is concerning. Landlords, rightly so, worry that if renters  are unable to pay longer term, then how will the property owner pay their lender? Small-scale proprietors making up the difference isn’t a solution, another adjustment will have to be made in the near future.

Are there additional actions that can be made in the longer interim? Comment below with any beneficial thoughts, opinions or solutions.

*Because of the fast-changing pace of information during this time, all details above
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Is the spread of coronavirus cause for concern when it comes to investing in real estate?

Although we shouldn’t take this turn of events lightly, there is no need to be over-alarmed. Panicking disrupts versus constructively approaching the issue with a level head. As investors, it's important to have a beneficial conversation about the potential impact.

We want to hear from you, what are your thoughts and opinions? Please share in the comment section below.

Here are some resources to read and consider:

https://www.fool.com/millionacres/real-estate-market/articles/how-the-coronavirus-could-impact-the-american-real-estate-market/
https://www.curbed.com/2020/3/6/21163523/coronavirus-economic-impact-housing-market
https://azbigmedia.com/real-estate/the-coronavirus-impact-on-the-real-estate-industry/
https://www.kirklandreporter.com/business/real-estate-coronavirus-mortgage-rates-and-inventory/

Imagine this scenario… 

You find a good piece of real estate that you decide to buy. 

You have little money to buy it, but you decide to use whatever money you have as part of your down payment. 

You get qualified for a 90% LTV loan. 

You call around and you are able to raise the remaining money you need for the down payment from your close friends and family. 

You promise to pay them a generous interest rate of 8% for lending you their hard-earned money. 

The following month, you find another good real estate property that you want to buy.

You have no money to buy it, but you know you can raise the money. 

You have great income and credit and once again you get qualified for a loan with 90% LTV.

You call around and you are able to raise some of the money from your close friends and family. Again, you promise to pay them a generous interest rate of 8% for lending you their hard-earned money. 

This time, you remember about a line of credit you have, and so you decide to use all of it to close the deal.

You’ve now raised
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• Despite the defeat in 2018, the proponents of stricter California rent control have already secured enough signatures to put another initiative in the ballot in 2020. It cost the industry $75 million to defeat the 2018 ballot initiative. Given the expected higher turnout for 2020, a presidential election, not to mention higher advertising costs in a presidential election year, this would suggest that the upcoming initiative will be as expensive or more.

• In Colorado and Illinois, we expect a return of measures that would eliminate their statewide rent control preemptions. In each state, Democrats control both chambers of the legislature as well as the governorship, meaning that rent control could move very quickly from a proposal to a law unless a vigorous defense is mounted. Notably, in Illinois, Chicago teachers included rent control as a demand for settling their recent strike. The Nevada legislature will not convene in 2020, but it is likely that rent control measures will arise in 2021.

• In Massachusetts, a bill to remove the statewide preemption will receive its first hearing in January 2020. While Republican Governor Charlie Baker supports solutions that address the lack of housing supply, rent control amendments to the bill are expected.

• While Washington State maintains a statewide preemption, the Seattle City Council is nonetheless actively pushing for rent control. In the November elections, City Councilwoman Kshama Sawant – an outspoken rent control advocate – defeated a candidate heavily backed by Amazon, which opposed rent control.

• There have long been rent control rumblings in Minnesota. While the state has preemption provisions, the Minneapolis City Council is officially studying rent control as an option to address housing affordability.

• In New Jersey, where some cities already impose rent control, lawmakers introduced a measure in late 2019 that would set a statewide rent cap at five percent plus CPI or 10 percent, whichever is lower. The proposal is likely to receive consideration in this year’s legislative session.

• Florida and Utah lawmakers also introduced measures in 2019 that would remove the state preemption on rent control. The bills are poised for consideration in the new year.

• With Democrats in control of all statewide elected offices and the General Assembly in Virginia, and the pending arrival of Amazon’s HQ2 in Northern Virginia, it is possible that rent control will be raised.

• Though Michigan preempts local municipalities from imposing rent control, the Ann Arbor City Council is pursuing the policy. It remains to be seen how the issue will proceed in the state.

• While Georgia also has a preemption against rent control, Atlanta City Councilman Antonio Brown recently introduced a resolution encouraging the state to allow cities to pass rent control legislation.

For more resources on rent control:
 https://www.underoneroofny.org/

A discussion with Greg Kesterman from Hamilton County Public Health on health issues concerning property and tenants.

This course covers several topics on health issues one might face as a landlord including hoarding, meth clean up and interacting with the health department.

Incudes 1/2 an Hour in PHP Credits in Federal Regulations

Click Here to Take Online Class

A discussion with Greg Kesterman from Hamilton County Public Health on health issues concerning property and tenants.

This course covers several topics on health issues one might face as a landlord including hoarding, meth clean up and interacting with the health department.

Incudes 1/2 an Hour in PHP Credits in Federal Regulations

Click Here to Take Online Class