Tips for Renters and Landlords as the Eviction Moratorium Expires

August 8, 2020CreditBy toptierfinancial

An important protection for renters created by the CARES Act ended on July 25. Commonly referred to as an “eviction moratorium,” the protection applied to approximately 25 percent of renters nationwide and helped ensure that they would not be evicted during the ongoing health crisis of COVID-19. Now, this provision has expired, along with some states’ separate eviction moratoriums. On top of this, the $600 additional unemployment benefit created by the CARES Act has expired, too. As these critical programs come to an end, many fear that evictions will increase significantly. Here are some tips for tenants and landlords to navigate their housing situations in this new landscape.

Know Your State’s Law

The federal eviction moratorium only applied to subsidized housing and housing with a federally backed mortgage loan. It was estimated that this covered 25 percent of renters. While 25 percent is a substantial amount, the federal law left many unprotected. States stepped in to fill the gap, with many creating their own state-wide eviction moratoriums.

With the federal moratorium ending, it is important to be familiar with your state’s law. You need to know if your state has an ongoing moratorium. If it does, you need to know when that will expire. Every state is handling this differently. In Virginia, for example, the original moratorium had been extended but officially expired in late June. The governor then requested that local courts continue the moratorium, leaving it to their discretion. Therefore, in Virginia, whether or not you are currently protected from eviction depends on the policy of the city or county in which you reside.

As you can see, this can get confusing. There are some resources to help you quickly learn the current law in your state. You could check out the Eviction Lab’s COVID-19 Housing Policy Scorecard, which tracks current policies in every state. Nolo has a similar guide. You may also consult your local legal aid organization. Legal aid groups have been on the frontlines of advocacy for tenant’s rights during the pandemic, and their staffs will be able to provide up-to-date-information. You might even start by visiting their website or Facebook page to get recent updates and information.

Be Aware of Future Changes

Congress is in the midst of approving a second stimulus bill. You should stay aware of the negotiations and be informed about the terms of the new law once it takes effect. While no one knows for sure what the new bill will include, it is possible that it could extend the eviction moratorium or create some new form of housing protection.

Watch Out for Misleading Tactics

Despite the moratorium, some landlords have resorted to misleading tactics, which could confuse tenants about their right and cause them to leave the property prematurely. One thing to keep in mind is that landlords must give 30-days’ notice before eviction. That notice cannot be given until after the moratorium. So even though the moratorium ended July 25, you have until at least late August before you can be evicted. Landlords may be deceptively threatening eviction sooner, or attempted to send notices prior to July 25.

Also, some landlords may dispute that they are a “covered property” and therefore may argue that the moratorium does not apply to them. If you need to confirm that your property was subject to the moratorium for any reason, check out the database created by the National Low Income Housing Coalition, which identifies most covered properties.

Again, you should also consider reaching out to a legal aid organization, other attorney, or tenants’ rights group for further assistance should you become the target of eviction proceedings that you believe may violate your rights.

Work Together When Possible

Landlords and tenants alike may find that working together will lead to the best solution. Given the widespread unemployment and harsh economic downturn caused by the pandemic, tenants may have more leverage than usual when it comes to negotiating. Landlords may feel that it will not be very easy to replace tenants, particularly those with strong payment records before the pandemic. Landlords also may also be understanding about the unique challenges involved in this situation, and be flexible in making alternative payment arrangements. HUD offers some advice about working with your landlord, including being candid about the specifics of your hardship, and keeping records of all communications.

Use Available Resources

Remember that you are not alone. Many people are working tirelessly on this issue. If you need help, consider reaching out to your local housing resources, including legal aid or other tenants’ rights groups. NFCC-certified agencies can also help with rental counseling or budget and credit counseling, which may help you restructure your personal budget and debt obligations in order to make your rent payments. Make sure you stay informed about your rights, follow any developments in a new stimulus bill, and remain in close communication with your landlord.

The post Tips for Renters and Landlords as the Eviction Moratorium Expires appeared first on NFCC.

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What Renters Can Do in Response to Financial Uncertainty

May 12, 2020CreditBy toptierfinancial

Nearly one-third of Americans were unable to pay their rent during the first week of April. The most likely culprit — the coronavirus. As the pandemic swept the nation, many businesses were forced to close their doors, leaving millions unemployed. With no income, many found they were unable to make their rent payments. This month, some renters may be facing the same predicament again. 

If you find yourself in a similar situation and are struggling with financial uncertainty, there are a few things you can do to help make ends meet until stay-at-home orders lift. 

1. Talk to Your Landlord

Many renters are panicked about making rent payments in April and the coming months. If you find yourself in a similar situation, talk to your landlord about it. Most property owners will be willing to work out a payment plan with you as long as you approach them with honesty and urgency. If you wait until the day before rent is due to speak with them, they may not be so willing to work with you. 

If your landlord is unwilling to compromise or consider a payment plan, try to pay as much of your rent as possible. Plus, your landlord might waive late fees if you pay a partial amount. While skipping one payment may not result in eviction, missing several could eventually trigger action, even in states that temporarily halted the process in March. 

2. Reach Out to Utility Companies 

Many utility companies may also be willing to cut renters some slack during the pandemic. While some are waiving late fees, others are easing shutoffs to accommodate those who don’t have money to pay their bills right now. However, you must call them first with a request. Otherwise, they’ll expect you to pay in full by the due date. 

Additionally, some companies are offering free services to those struggling to pay their utilities. This way, people still have internet access, running water, gas and electricity even if their providers shut off services. Comcast, AT&T, Pacific Gas and Electric Company, and Georgia Power are just a few companies giving renters a break in some form or another. 

3. Cut Nonessential Costs

As you take stock of bills you must pay and others that may be able to wait, examine your budget as a whole. Are there any costs that you could cut temporarily? Doing so may make it easier to buy groceries and pay essential bills. 

Review your recent credit card statements to see how much you actually spend throughout the month. Odds are you could cut ordering out, an online subscription or two, or a membership you’re not using at the moment. Considering your spending habits will help you save so you can pay your bills. 

4. Use Emergency Savings 

If you’ve exhausted the above options and still cannot find the money to pay bills or buy essentials, you may have to dip into your emergency savings. While using your savings to survive a pandemic may not be how you envisioned spending your money, this is an emergency, after all.

Financial advisors often recommend you have enough money in your emergency fund to pay for six months of living expenses. However, this isn’t an option for everyone. Therefore, it’s best to assess your budget, costs and savings and create a plan that works for you. Even a few hundred dollars may be enough to keep you on your feet until this blows over and people can return to work. 

5. Seek Financial Assistance 

More than 26 million Americans have filed for unemployment over the last few months. By now, you may have done the same if you are currently unemployed due to the pandemic. In most cases, you can receive unemployment benefits up to half of your wages. However, each state sets its own criteria and benefit levels.

If you aren’t eligible for unemployment and are still struggling financially, you might seek assistance from friends and family or from a personal loan. This may help you pay for essentials or keep your housing and utilities running during the crisis. However, it’s recommended you speak with a certified counselor to sort through your options and make guided financial decisions that won’t hurt you in the long run.

Plan Ahead for Financial Uncertainty

Unexpected emergencies like this are why it’s so important to plan ahead and save. As you recover, be sure to create an emergency fund or build yours back up so you’re ready if disaster strikes again.

The post What Renters Can Do in Response to Financial Uncertainty appeared first on NFCC.

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