A sweeping eviction moratorium has been implemented across the nation, in addition to actions taken by states. Questions remain, however, as to the effects these actions will have on renters and owners alike. It seems almost certain that both parties will suffer negative consequences. Let's look at some of the issues further.
Few would argue that public health is of paramount importance during a pandemic. Safe housing is certainly a contributor to public health and welfare. The goal of the eviction moratorium is to prevent renters who are unable to pay rent due to financial hardship caused by the pandemic from being removed from housing. However, rent payment has not been waived or reimbursed by the government. So the rent will be due eventually, leaving many renters with insurmountable burdens. In addition, owners are deprived of rents while continuing to provide housing and other services to all tenants. There has been no reduction in taxes, utilities, or even inspections despite being unable to remove tenants who are not paying rent. It's almost certain that all renters will ultimately suffer as building maintenance and other services decline as a result of rent losses.
Additionally, some renters might mistakenly believe that violation of lease terms including rules and regulations are similarly protected from eviction. This is not the case. The federal eviction moratorium only blocks removals for nonpayment of rent and all other lease violations can be subject to eviction as usual.
We predict that rents will rise as fewer renters contribute to the fixed costs that are associated with a property such as taxes and utilities. In addition, there will be an upward force on rents as some owners simply decide to remove apartments from the market given the uncertainty of rental income. It is cheaper to maintain a vacant apartment with no income than it is to maintain an occupied apartment where the renter is not paying rent and cannot be removed.
So what is the best way to move forward? For renters, it is wise to make every effort to pay rent and diligently follow all other provisions of the lease. Building owners should be sympathetic to the situation of renters who have had significant financial losses as a result of the pandemic. Additionally, building owners have an obligation to all tenants that the lease terms are applied justly. Residents should expect that everyone is held to the same rules and regulations.
Owners and renters really do need to work together. No building owner is in business to evict tenants. It is always done as a last resort and as a means to protect the physical, social, and financial health of a property. Time will tell what the long term consequences will be, but it is likely that owners and renters alike will suffer. Working together, we can at least hope to make it through this trying time healthy and financially stable.