Mom and pop landlords, or small real estate owners who rent their properties out to individuals are suffering the most from the eviction ban. While most landlords understand the importance of it and they wouldn’t want to see anyone forced into homelessness, the landlords themselves are forced to shoulder the burden of something that should be the government’s responsibility.
Many mom-and-pop landlords rely on rental income from their property as their sole income or at least income to cover the property’s mortgage costs.
What is the Eviction Ban?
The eviction ban prevents landlords from evicting renters who cannot pay their rent. All they have to do is sign a declaration form with the CDC stating they are suffering from financial issues due to the pandemic and you can’t evict them. It’s definitely one-sided protection.
How Does it Work?
The eviction ban protects renters from losing their homes – but at what cost? Renters don’t have to make their payments (although partial payments are suggested) and can remain in the property.
This leaves mom and pop landlords shouldering the cost of housing these renters who don’t have to pay. It’s unfair pressure on the landlords, but unless tenants engage in criminal activity or do something within the property to jeopardize the health or safety of others, they can’t be evicted.
In Chicago, the bank forbearance goes through September 18, but it will likely get another extension to match the federal ban that lasts through October 3, 2021.
How Landlords are Suffering
Here’s the problem. Small landlords don’t have the diversification larger property owners have and they make as much as 17% less than institutional investors. Being forced to maintain a property including paying its expenses while not collecting rent isn’t fair to landlords.
But mom and pop landlords have two options – keep up with the property, waiting it out, or sell your Chicago, IL house fast and get out of real estate investments for the time being.
What can you Do?
Mom and pop landlords feel stuck. They don’t know if they should keep the property, let it foreclose, or if they need to sell their Chicago house fast.
It’s a big decision that you must make. But if the eviction ban continues to be extended, most landlords won’t have a choice or they risk ruining their own financial future to protect that of their renters.
Final Thoughts
If you’re a mom-and-pop landlord finding yourself in this position, we can help you if you need to sell your Chicago house fast. We understand the difficult position you are in because we are dealing with it first-hand. If you need to discuss what your options are and how Onyx Homes, LLC can help Simply contact us, get a fair no obligation cash offer and close on your house in a matter of weeks! Landlords work with us for reasons including convenience, speed and less hassle than going the traditional route of listing with an agent. You can also book a call with us or you can simply fill out our online form and one of our representatives with reach out to you ASAP.
