How has the California eviction moratorium affected you as a smaller landlord? Well without financing from banks and infusions of stimulus cash, odds are it’s been tough.
58% of you are still possibly waiting for months worth of rent payments, according to the National Association of Realtors.
When Does the California Eviction Moratorium End?
At the end of June, Governor Gavin Newsome extended it by signing Assembly Bill 832. This third postponement pushes it out through September 30th.
Rumored to be the final instance of this legislation, landlords across the state are hoping it is more than a rumor.
And on the national level?
On August 23rd, the White House asked the U.S. Supreme Court to affirm the CDC’s late extension that moved the federal deferment until October 3rd. This news applies to 92% of all U.S. counties.
While still awaiting the promised $47 billion in rental assistance from the federal government, landlords of all levels are understandably uneasy. Especially since as of July only $3 billion of the first $25 billion has been dispersed.
How about some good news?
The Supreme Court is presently considering challenges to the moratorium from realtor groups across the United States.
They may have a solid case as even some officials within the White House have admitted it may not be lawful.
Next we’ll look at how this news affects you as a landlord.
Adjusting to the Extended California Eviction Moratorium
Larger property owners typically have financing and access to other cash sources. But for those with fewer than 4 units, this safety net is less pronounced.
A couple differences in your case:
- Harder time receiving stimulus funds
- Less margin to weather ongoing rent defaults
Surely it can seem like you’re the only one facing this situation.
But consider this.
The Aspen Institute found that as much as $20 billion in back rent is owed by 15 million people. So you’re part of a pool of hardworking landlords all in the same situation, who can unite and support each other.
Besides peer support, we want to share additional insights to help you through this time.
Options are available for your consideration, even if they’re less than ideal.
- Selling in the hot housing market
- Leaving properties uninhabited
- Buying in wealthier areas
- Adjusting your screening process
Regardless of one’s industry, outsiders have always weighed in without understanding the real story.
But be proud that small landlords such as yourself will continue to be the backbone of the residential property industry!
And there’s another reason to be hopeful.
California Eviction Moratorium and Insurance by Castle
We understand you have concerns about your property investments during this unprecedented period. But let us encourage you to stay positive and know you have a friend to come alongside you.
Insurance By Castle has been providing landlord insurance in Redwood City, San Mateo, and surrounding areas throughout California for over 30 years!
A name that’s trusted and backed by countless positive reviews, we operate independently of insurance providers, allowing us to shop around and secure the most affordable rates for our clients.
For a customized landlord insurance policy, call (650) 364-3664 today or request a quote. Get protected today!