Rent Relief and a Potential Storm of Eviction

Rent relief efforts continue as the country struggles with the challenges of the COVID outbreak. And while the influx of eviction proceedings has not hit yet, it is coming.

In Galveston County, Texas courts and lawyers are preparing for the onslaught of legal action being taken against renters that face eviction due to loss of income related, generally, to COVID19.

From Galvnews.com (June 7, 20):

The state-imposed moratorium on evictions for those behind on rent payments because of the COVID-19 shutdown officially ended May 18, a brief respite for those who lost jobs or work hours because of the pandemic.

During the moratorium, evictions couldn’t move through the courts.

Since then, however, … and several county constable offices have seen an uptick of cases — mostly landlords catching up on delayed cases — but nowhere near the avalanche some expected. (1)

However, many states are working on continued rent relief.

In Illinois rent relief efforts are in place to cancel debt.

From the Chicago Tribune on May 20, 2020:

Measures for statewide rent relief — which would include help for tenants, landlords and homeowners impacted by the coronavirus pandemic — could hit Gov. J.B. Pritzker’s desk in a matter of days.

If signed into law, the COVID-19 Emergency and Economic Recovery Renter and Homeowner Protection Act, which Chicago Democrat Rep. Delia Ramirez introduced Friday, would cancel rent debt and suspend mortgage payments for those experiencing hardships related to COVID-19. (2)

In the state of New York rent relief is still in place but the rules have changed for renters.

From KiowaCountyPress.com (June 5, 2020):

New York Gov. Andrew Cuomo, for example, has halted evictions until Aug. 20. After June 20, however, tenants seeking relief will have to prove that they qualify for unemployment insurance or are suffering financial hardship. And with passage of the CARES Act, Congress paused evictions in federally subsidized housing until Aug. 23.

But when these eviction moratoriums expire, the accumulated bills will come due. One in 4 renters were already spending more than half of their income on rent before the pandemic. In

its aftermath, these numbers will only rise because millions of people may remain out of work or be forced to take lower paying jobs. (3)

What happens with evictions down the road is uncertain. Renters may face the dread of eviction due to the economic downturn caused by the COVID 19 pandemic. When one considers rent relief efforts and pressure put on state and local governments, the potential for changes in law governing the use of eviction records is very real, and landlords and/or property managers should take note. Subsequently, the need to work with a tenant screening agency is more urgent.

Adam Almeida, President and CEO of TenantScreeningUSA.com states: “Eviction reports are a big part of the tenant screening process and landlords/property managers should work with a well-qualified third-party tenant screening agency in order to stay current with all laws governing the use of such records.”

TenantScreeningUSA.com provides full-service tenant screening for landlords and property managers of any size and can greatly assist in remaining fully compliant with all existing law governing tenant screening. With a highly trained and experienced staff, TenantScreeningUSA.com can provide help to landlords and property managers with all their tenant screening needs.

Notes:

(1) galvnews.com/news/free/article_e2f79dc8-71f2-5898-b0c1-db31bafbd1e6.html

(2) chicagotribune.com/coronavirus/ct-re-coronavirus-rent-relief-legislation-20200520-6cog3rewubhzjauxbtjzn5zgrm-story.html

(3) kiowacountypress.net/content/coronavirus-related-debt-will-live-digital-profiles-years-%E2%80%93-hurting-americans%E2%80%99-ability-ge