The eviction moratorium was established early in the Covid-19 pandemic to provide relief for those struggling to pay rent due to the impact of Covid related health and financial issues. The initial moratorium technically expired on July 31, 2021, but the Centers for Disease Control (CDC) attempted to extend it without the proper legal authority until October 3, 2021. As a result, the Supreme Court just ruled the CDC’s extension of the moratorium was unconstitutional, therefore ending the program and bringing a new sense of urgency to tenants behind on their rents. Below are some things tenants should consider as a result:
Tenants Must Take the Lead
If you are a tenant behind on your rental payments, you must take action now to avoid eviction. The first step is to be proactive, and not reactive, in communicating a plan of action to pay all back rent. While landlords are averse to the eviction process, tenants give them little choice if they feel the tenants are not acting in good faith. Second, tenants must quickly execute their plan to instill confidence in the landlord that all past/future bills will be paid. To that end, one option is a government program offering over $46 billion in rental relief. The program was poorly advertised at its genesis and still has approximately $40 billion remaining for those who qualify. See Emergency Rental Assistance Alabama for more details on accessing these funds, but generally, assistance is available for the following expenses dating back to March 13, 2020:
Past due, current, and up to three months of expected rent costs
Past due, current, or up to three months of expected utility and home energy expenses
After the initial three months of forward assistance, you can apply for three additional months of assistance if funds are still available
Landlords Have the Leverage
Tenants should remember that in the existing housing market, landlords have the upper hand. According to industry consultant, RealPage Inc., occupied rental apartments experienced the most significant annual increase in the second quarter of 2021 since the early 1990s. In addition, elevated demand for rental properties is likely to continue with new renters entering the market. Renters that delayed getting into rental properties during the pandemic will experience the high prices associated with the for-sale market and historically high construction prices.
Recommendation: Be mindful that landlords have options on filling vacancies and take past due and future payments seriously.
