Update on Rental properties and Covid-19
Property managers in Warner Robins Georgia are fighting to keep investment properties producing enough income for their landlords to, at least, pay for the mortgages tied to them. Since March 2020, an eviction moratorium has prevented property managers from evicting tenants that were unable to pay rent. This has put a major burden on property owners that still are required to pay their mortgage.
Property Managers in Warner Robins can now evict
By all reports, the eviction moratorium was only enforceable to property owners that received government backed funding from low income housing tenants or government backed loans on the property itself. If the property owner did not fall into these categories, they were allowed to evict tenants for non-payment, except the courts were closed.
Eviction mandates for Property Managers in Warner robins have been lifted as of July 24 2020. As of this article, no extension has been signed to continue the moratorium. Congress is still working on a plan to extend the moratorium. The senate has been sitting on a plan to extend for another year. The house is agreeing to extend, but have not decided on how long they will agree to extend.
Currently, this means that any tenants that do not pay August rent will be given thirty (30) days before an eviction can legally be filed.
** Right after this update, a new order to extend the eviction moratorium was put in place. NO details on how long the extension is.
Rents that have not been paid from March until now are still owed to these Warner Robins property managers. The property managers will need to consult the property owners and the tenants and resolve a workable plan to repay any missed rents during the time of the Moratorium.
Property owners that have not received enough rents to operate and pay their mortgage were offered a forbearance plan from all federal backed mortgage companies. These borrowers have been given the option, by FHFA, to defer payment on their mortgage. As of July 1st, the forbearance will have expired. No new extensions have been approved. This means banks will now start working with their borrowers to repay the skipped monthly payments. The banks are offering multiple options depending on the bank;
- Repay at refinance
- Repay at sale
- Moving payments to end of loan
Reports say the regular monthly payment amount of the loan will not change. This allows property owners a chance to recover from this pandemic without the threat of a surprise mortgage payment at triple the rate.
Property Managers in Warner Robins Ga now have the task of getting any tenants that are behind on rents back on track. Tenants that legitimately lost their job or still looking for a new job will have a hard time paying their regular rent. Adding back rent to catch up will make things even more difficult.
What some Warner Robins property managers are doing to help tenants
Warner Robins Property managers that have good tenants, but got in trouble during the coronavirus pandemic, have forgiven rents (with the property owner’s permission). Half the rent on two months or one full month’s rent have helped some tenant immensely.
Some property managers that know the tenants well enough and trust their skills, have taken improvements on the house in exchange for some of the back rents. Apartment tenants may not be able to use this option.
Ask the tenant what they are able to pay to get back on track. Some may have funds they can use that were not accessible before. $50-$100 per month till paid may be acceptable both parties. Also taking part of the deposit can help curb the total due rents can be an option for tenants that show a good history of maintaining the property.
Work like a team and everyone wins.