Navigating Rental Ownership in California During the Pandemic
The pandemic is creating new challenges for rental owners in Orange County, California. These challenges cover every aspect of rental ownership from managing the property to legal responsibilities to the economic pressures on tenants. Here we’ll look at how rental owners can navigate and meet these issues.
#1 Keep communicating
The Coronavirus pandemic has had a huge impact on the economic fortunes of Californians. In fact, one in every five workers in California have filed for unemployment during this period. (1) This of course means that an unprecedented number of people will be struggling to meet their rental payments. Many landlords will be receiving requests from their tenants for a reduction in rent.
If you do receive a request to reduce rent as a result of the pandemic it is essential that you keep communication open and that everything is put into writing. Any discussion of a rent reduction or delay needs to be assessed with all of the facts being available. Having your tenants put these in writing will allow you to determine your next steps carefully.
#2 Bans on eviction
Make sure to keep up to date on any legal restrictions on evictions in your area. Previously, all renters in the state of California were entitled to have an eviction delayed, if the reason that they have been unable to pay their rent is due to the Coronavirus pandemic. In order to qualify for this, they must have notified their landlord no more than seven days after when their rent was due. This ban against eviction was previously in place until May 31st, 2020. From June 1st onwards, tenants could be evicted if they hadn’t paid their rent in April or May. (2) However, Governor Newsom recently signed a new executive order that gives local jurisdictions the authority to extend eviction moratoriums through July 28 to protect renters impacted by the coronavirus pandemic. (3) Around 80 local governments have also put in place some forms of protection against eviction and the Federal government has put in place a 120-day eviction moratorium for eviction if the property is backed by a federally backed mortgage.
On top of this, the response to the pandemic is a fast-evolving situation. If you are considering eviction due to non-payment of rent, first check the latest requirements that need to be met in your area before proceeding.
#3 Put any additional relief in writing
There are good reasons to offer tenants relief during this period. The long-term value of the tenant, the difficulty of replacing them during the coronavirus, and the genuine hardship many people are encountering, means that you may want to work with your tenants if they do require assistance.
Make sure that your tenants are aware of any governmental support that may be available to them, which will help them to meet their rental obligations. If you do decide to proceed with a rent holiday or rent reduction, then the terms and period should be clearly stated in writing.
Navigating rental ownership during the pandemic in Orange County, California may have you re-evaluating your property portfolio. If you decide that now is the time to sell, then JAM Properties, LLC would be happy to have a conversation about the next steps. JAM Properties, LLC understands that during this time you may be in a position where you need to sell your property quickly. Unfortunately, due to the pandemic, buyers are often scarce or unable to proceed with a purchase. JAM Properties, LLC can pay cash for your property and you won’t even have to pay any realtor fees. Contact us today by phone 949-438-4343 or email: email@example.com.
- https://www.sfchronicle.com/bayarea/article/Newsom-allows- extension-of-local-eviction-15304850.php