Smaller Rental Property Owners Are Suffering, Government Needs to Act!
Many are Facing 20-30% Delinquency Rates
(Crestview Hills, KY) The National Real Estate Investors Association says individual property owners, most of whom own less than 50 rentals and live in close proximity to their properties, are bearing the brunt of eviction moratoria put in place by various government entities across the nation. Over 30% of these small “mom & pop” owners (owners of duplex/fourplex and single-family homes) expect to be bankrupt in the next 6 months. When you consider that individual rental property owners constitute over 40% of U.S. rental property, this seriousness cannot be understated. That is why National REIA is calling on Congress and federal & state governments to renew and expand funding for rental assistance to head-off this impending calamity that will wreak havoc on our nation’s economy.
While federal and local eviction moratoria are delaying the impact for renters, property owners and managers are being impacted severely. Rent pays the mortgage, insurance, taxes, utilities, maintenance & staff. With many property owners reaching into savings as far back as April, many individuals’ savings are being depleted with future prospects being grim for a third of these rental property owners.
Charles Tassell, Chief Operating Officer of National REIA said, “Even if there were a broadly distributed vaccine next week, the damage already done would still require federal & state assistance. Small property owners cannot continue and the impact to the country of over 30% of small rental property owners going bankrupt would be devastating. CARES Act funds for rental assistance have mitigated the impact but need to be renewed and expanded.”
Tassel further stated that “Understanding delinquencies are key: Most residents living in smaller properties are not behind a single month or even two. However, those who are delinquent are typically four to six months behind, even if they are making payments, which most of them are not. Something needs to be done now, not later, to forestall this impending crisis.”