Eviction Ban Extended
The eviction ban has been extended though Jan 31st, what can investors do?
On January 4th, the Consolidated Appropriations Act of 2021 was passed and signed into law extending the eviction moratorium through January 31st 2021. This sparks many questions directly related to the continued presence of the Coronavirus. How long will the ban continue to be extended for? What can landlords do in these situations?
(Disclaimer: This isn’t legal advice but my views on the situation.)
According to the eviction moratorium, a non-paying tenant needs to provide a written declaration under penalty of perjury that includes: their statement that they’ve attempted all means of acquiring assistance, that they have no housing alternatives, that they are attempting to make partial payments, and more. Short story - if these things aren’t happening and a non-paying tenant hasn’t delivered this information to the landlord, evictions can likely proceed. Check with your legal counsel for their advice on any specific situation.
These regulatory risks to real estate investing underscore some of the fundamental aspects of managing a rental property - namely, the initial tenant screening. A robust tenant screening continues to be one of the most critical parts of the leasing process here at Bigfoot Management Group, as it should be with even the smallest investor. A multi point screening considering credit, financial strength, personal & professional references and a criminal background check have become all the more important when an eviction may be impossible on the other side of signing a lease agreement.
Thoughts?: dustin@bigfootmg.com
The Political Pendulum
It all begins with an idea.
Generations react to political changes & what it says for real estate.
After all that this year has brought us a little change might be helpful, right!? Our nation is constantly in a political pendulum swing in both state and federal systems, as is the real estate market. That market typically swings from sellers to buyers, although with this current market, it seems to be swinging towards sellers almost indefinitely. This can’t last forever, but it is encouraging one trend: Multi-Family Sales! According to the Helena Area MLS, from 9/1/19 to 12/9/19 only 18 multifamily properties changed hands in our market. In the same period this year, 31 properties. With 10 on the market today. What is driving this? I will take a guess and say that the generations are reacting to 2020. Baby Boomers are cashing out when the market is high, which they should! They have worked hard to build portfolios and found stability in rentals, but change could be around the corner. One possible change that some fear is the dissolution of the 1031 exchange, which has helped portfolios expand with tax deferment. Another change is the eviction moratorium, which could be extended, and brings great instability to an otherwise stable investment. With these changes buyers don’t seem dis-swayed! In my opinion it is because we are seeing Gen-X & Millennials jumping into the multi-family market in droves, after watching from afar and not seeing an opportunity, they see it now. Let me know your thoughts! josh@bigfootmg.com