Loss of income, many Americans are unable to pay their rent. However, the deportation ban keeps them from being evicted. This pushed homeowners into running out of money.
According to CNN, within 30 years, Maral Boyadjian built a real estate empire comprising 8 rental homes in Southern California. “Some people spend money to buy bigger houses, better cars or travel. We live very frugally,” she said. “We put all our money together to buy more houses for rent,” Ms. Boyadjian added.
In the past, rent helped a couple to earn income and cover all expenses. But for the past several months, tenants in three of their properties in the San Fernando Valley have been unable to pay rent. The couple was also unable to evict them because of the state ban.
Out of the three tenants, one has arranged to pay 25% of the amount. Mrs. Boyadjian revealed that the tenant made her feel comforted. By the very least, they were also trying to pay some money. However, the others have not paid since August.
Until now, Ms. Boyadjian still has to fulfill obligations such as paying property taxes and insurance money. Not only that, she also has to pay the gardener and the pool maintenance staff.
Renters are increasingly desperate as the Covid-19 pandemic continues, unemployment remains high, government subsidies are exhausted, and the US bipartisan cannot agree on an additional stimulus package.
According to Census data from the Center for Budget Priority and Policy, an estimated 9.2 million renters lose income because of the pandemic. The Federal Reserve Bank of Philadelphia report shows that unemployed renters will owe an average of $ 5,400 in December.
Under the Centers for Disease Control and Prevention’s (CDC) national deportation ban, homeowners will be affected when rent falls and cannot evict tenants from paying.
According to consulting firm Stout, after the CDC ban expires, about 5 million tenants across the country will be evicted in January. Another 14 million households are also at risk. Mr. Howard advocates giving money directly to landlords or giving money to tenants to pay rent.
Household homes make up 50% of rental housing. Many of the homeowners rely on rental income to cover costs.
Mr. Gray’s company manages a house with a plumbing problem. The company spent $ 38,000 on repairs, but the landlord didn’t pay the bill.
Homeowners’ income decreased, while property wear and tear increased. However, this year, many maintenance plans were delayed or canceled because the landlord ran out of money.