What Happens to Landlords When Tenants Can't Pay Rent? | WSJ
HTML-код
- Опубликовано: 30 апр 2020
- Hundreds of thousands of renters may miss rent payments for May as the coronavirus crisis enters its third month in the U.S. For smaller landlords, that means facing their own financial crisis. WSJ’s Jason Bellini reports. Photo: Fadhila Hussein
More from the Wall Street Journal:
Visit WSJ.com: www.wsj.com
Visit the WSJ Video Center: wsj.com/video
On Facebook: / videos
On Twitter: / wsj
On Snapchat: on.wsj.com/2ratjSM
#WSJ #Rent
I think all of this just goes to show how fragile the US economy is
Include the rest of the world too.
@@mblegend3056 countries like Switzerland and Finland are doing pretty well last time I checked.
@@joebie7315 thanks for the info. But have they gotten any covid 19 incidents there now?
Real life post apocalyptic book.
well yeah... the country just a big investment form oversea ever since the colony time... without money.. there are no food...
I used to admire the United States. Now all this lack of savings, student debt etc, makes me pity it. Not all that glitters is gold.
Don't pity us we deserve it
Lol! We did this to ourselves.....nobody should feel for us.
You watch too many movies; we work hard, life is expensive and not all of us are movie stars . Stay in your country and avoid our disastrous country😃
I have always wondered why people put us on a pedestal?!
It's all fake. All of it.
She had money for 14 houses. She can sell and raise cash. Most people don't have that. If you have enough money for 14 houses, you're doing better than most others.
A$$hat your lack of empathy will be revisited on you.
Nom de Guerre you have none
Tenants can't pay their rent. Then then owners can't pay their bank mortgage. Then the banks collapse. Welcome to the future, folks.
@joyceann011 I wouldn't depend on that the govt can take away your buisness anytime they want too if u cant pay then bye bye buisness especially u cant pay them mortgages she should've known her limit.
@joyceann011
doesnt really matter if landlords cry as far as i see it
renter doesnt pay rent > corona "ends" > renter evicted cause inability to pay 2-4 months owed rent
renter doesnt pay rent > corona "ends" > landlord cant pay > ..... > renter evicted cause inability to pay 2-4 months owed rent
a few extra steps involved, but unless the gov pays for what the renter owes...
I thought the landlords already owned their property?
joyceann011 well then I had no clue how their system works. I have a friend that has three titles in his name and paid all his mortgages in full and the two that he wants to rent out are a work in progress. Renting homes like that that aren’t exactly yours seems way too risky for me. 😬
@Eaze what does trump have to do with it lol, people were irresponsible for their mortgages even before 2000 hit.
The economy was fueled by debt. It was always going to end in tears.
if rent and mortgage is forgiven then so should property tax
True! They can get their tax dollars from rich people sitting in their mansions enjoying the quarantine worry free
breaking out the world's smallest violin to play a lament for the slumlords...."did you see the trash she was renting for 1200 a month to people lol."
@jimbo ... Great ... there goes the city ... more potholes - LOL.
@Fred Rogers, then move to Russia if you don't want to pay taxes, oh wait, they have taxes too. Then just move to a country that doesn't have taxes, oh wait, all counties have taxes. Then just tie a cinder block to your ankles and jump in the ocean, I heard there are no taxes down there.
@Mike Lopez absolutely true Mike - mortgage should be paid off before renting. Unfortunately, people are taught that "the renters will pay the mortgage" .. so landlords go into debt. And here we are today :(
When the tide goes out you find out who's been swimming naked.
@thomas smucker - I came to the beach wearing extra underwear :)
The emperor has no swimming pool
@Great Idea that’s pretty funny, I hadn’t thought of that 🤣
@@mihaela.b7242 Warren Buffet said this statement if im not mistaken
Slum Lord's like the lady highlighted in this video... There should seriously be limits on the number of homes one person can own (at least within a specific geographic area). These houses could be affordable for low income earners (who she takes on as renters) if the residential real estate market was balanced against "rent seeking" activities.
Sadly so, some people just aren’t paying even if they have it, because they know they can’t be evicted.
ConsciousEsthetics, Are people actually doing that? Cause don't they eventually have to pay?
@@ReasonsWhy5 Tenants can leave when finally asked to pay.
Most, likely they have to pay back rents. Tenants needs to save more, so cut unnecessary expenses. Until, they can catch up.
@@justinzhu329 the thing is, where will they go? Their credit will be ruined. They don't have the down payment to buy a house, and nobody will rent to them.
@@justinzhu329 Wow! Then what? Hopefully they have a well thought out plan, cause they probably won't be able to rent another place.
This lady leveraged too much. She should’ve only bought what she can afford and not borrowed so much from the bank. Sounds like she put all her eggs in one basket.
Like Robert Kiyosaki who is drowning in debt ?
sound like there are so many investment that you can put more in one basket.. that just sound of people who work for other people for next month rent..
Very true. She should have invested in other businesses besides a single business.
@@TheOwens442 Absolutely. Pretty obvious and I'm not a landlord. Yet ;)
Cindy Yan just like the people that don’t wanna pay their landlords. Bunch of freeloaders putting all their eggs in one basket and when their basket breaks, they cry and don’t pay.
It’s not their property but they talk like it is.
Our landlord said that we don't have to pay rent now but will be billed for all the months unpaid when we go back to work! So, I'm trying to pay each month!
Unfortunately they have to pay their bills as well. I'm sure many of them would be willing to work our payment plans if the tenants would just talk to them about it. Obviously people that are crippled by this economic collapse aren't going to magically have 3 months worth of back rent available and the landlord isn't going to want an empty house!
@@GreatWes77, not necessarily true. It is true that small individual owners might have bills to pay, but the fact is most rentals are now owned by big investment firms that are receive huge amounts of stimulus money and are able to get interest free loans from the Fed.
@blessed - you are smart and you are right. What these non paying striking tenants don't realize is EVENTUALLY they will be evicted for non payment. Now they get a BIG STRIKE on their rental report. Good luck finding another place. Most rental places are run by corporations. Good luck getting accepted for housing. You are absolutely right blessed4ever (like your handle name!)
Blessed4ever I’m glad that there are responsible tenants! I’m talking about the same issue in a video oh my channel! Check it out!
Wes Reiser yes a compromise can be struck, but canceling rent outright isn’t a solution. I’m talking about the same issue in a video oh my channel! Check it out!
Those tenants should at least give the lady a response
And tell her what.. the obvious?
@@marcushennings9513 I think it's called being an adult. If your landlord sends you a letter about anything, they expect a response. If you rent, it's not your house/apartment. I don't know the law, but a response probably starts a timeline of events for eviction. Almost like a subpoena starts a timeline for legal action and testimony. I could be wrong about the timeline, but that's my guess...
@@diegomontoya8889 I hear ya but their phone may be shut off also and with the current state of affairs it obvious why they aren't paying. Some people just can handle the pressure and imo it better to give space so they dont snap.
Marcus Hennings she sent them letters, called them and knocked on their Doors. They can’t have missed all of that. They refused to issue evidence of unemployment so why would it be so obvious? They could easily just be taking advantage of the situation to get out of paying rent.
@@hbmt5326 omg.. its obvious why they dont have the money and even if they do landlords can't force them to pay or evict until this rent restriction is lifed so why harass people for communication that will not change anything.. or worse could make them snap on you.
There's going to be a wave of defaults, within 6 to 8 months that will make 2009 look like a blip.
Terry ! i was just telling folks 6-12 months.
That's been apparent for twenty and more years. About the only thing the government could do to create jobs, was create a housing bubble, so people could make money selling houses to each other until they can't.
@@Regina.Clarke i doubt it, the banks are fine
Autobot Diva LOL this comment or thread is about what will happen to the homes as an effect of renters not having to pay rent especially given there are many landlords who operate on a smaller scale with smaller buildings. Two apartments gone unpaid can throw the whole plan off. Anyhow, with a name with autobot in your username, it sounds like you might not really be paying attention.
@@Regina.Clarke cuwte ahhhh!
Who else came to the comment section to see if landlords and renters were arguing
I have paid renters to leave! I give them $100 and give them another $300 when they have moved out.
It saves me a mountain of hassle and money.
I have never had anyone refuse me.
Landlords need to take a new approach.
@@LouMontana-wc7nr - good idea
@@LouMontana-wc7nr People need better negotiation skills like you.
Lou Montana yea if a tenant is living for free and owes $4500 in back rent I don’t think a little $100 or $300 is gonna get them to go anywhere lol. And I’m a landlord myself
@@JR-it2yc, adjust it accordingly.
Try something different.
You stand to lose a lot more in the long run.
I bought, remodeled, rented, and sold houses for well over 30 years.
When Trump came into office we sold all but one studio condo. We rent it to disabled vets only.
Waiting for the housing market to crash so I can buy a house 🏡
Sad to say, that's the best time to buy a house 🏠.
Won’t be as many as in the last recession due to PMI.
@@lindasmith6331 Sad but true 🥀
The problem is paying the mortgage since there are no tenants. Unless you are rich that you can pay all of it out of your pocket? 🤔
Cycling Martial arts with Music WOW, so many of us don’t think 🤔 like that! I pray that everything will get better for all of us.
Love how people will feel sympathetic for renters but not land lords.
I agree. I am living the life of both and it's not a good situation. I am currently renting a home and renting out my own (due to being military). Fortunately I have been able to pay and so has my renter but if something changed today I could only pay, for both places, two months before I'm financially crippled.
@Dirk Knight Every landlord is not in it as a business. For me it is a necessity because of having to continually PCS for my job.
Large corps got their tax breaks even when the economy was booming, ordinary folks can't get a break even when they can't pay
Lies again? HDB Porn
I’m impressed she has bought 14 properties in 10 years.
Greedy
@Dlg solo Loaned them??? whaaat like mortgage loans? Sorry I don't know anything about finances
@Dlg solo yes it's done all the time.I almost got into this myself in pa
she deserves everything that is happening to her. she probably doesnt even OWN 1 property outright, but has massive loans on all of them. people like her are the reason for a housing bubble there is no reason to have 14 property's just so you can live passive off other peoples hard work.
@@MaskedMageYT She is struggling for no fault of her own. This recession isn't natural, governments around the country are uneccesarily banning landlords from asking for rent while not giving compensation.
A broke economy. Everyone teetering on the edge
Umberto Fournier not I said the cat
@umberto - Not everyone is teetering. Those that are over leveraged in housing debt / business debt .. .didn't save.... they are teetering. Those that lived under their means, have savings, and aren't trying to compete for fancy cars and houses .. nothing to show off but stable money management .. .. might even look broke but are actually financially solid ... are doing fine. Thank Heaven I look perpetually broke :)
@@computercrazies - OMG. You made me laugh. I needed that :)
Yep
One reason is that rents are taking far too much per month of people's incomes. Wage have stagnated for decades but landlords continue to raise rents in an outsize proportion to wage increases. Eat the rich.
As soon as as someone doesnt pay the rent, they wont any more.
basti vargas No they just move out after the 90 days Leaving the landlord on the HOOK
@Josen No not all landlords have emergency funds. They still have bills to pay and mouths to feed.
Don't regular people who rent also have emergency funds?
@Josen No How is a landlord not living within their means? A landlord should not have to keep an emergency fund for deadbeat tenants. Being a landlord is providing a service, and when you provide a service you expect to get paid.
@Josen No why are tenants not living within their means?
I wouldn't rent an apartment in Manhattan if I can't afford it. You shouldn't choose a place where you cannot afford to live there. If you do, you will continue this cycle until you are dead.
@Josen No just because landlords are better off does not mean that they are obligated to help you with rent payments.
It's equivalent to saying well you have more money; therefore, I don't need to pay you.
why do house owners buy so many houses if they cant keep up with at least 1 month or 2 months of rent for all houses its greed
No it business. Every business has risks. That like saying why can't small businesses pay their employees for two months without revenue.
Plague Master dude what are you talking about? A competent business owner with years of experience knows their baseline bills right? And that same person knows they have to pay their bills right? So why would they NOT have reserves??? Obviously there’s differing circumstances as I acknowledge small business is a hit or miss, but reserves should be the norm. I’m actually really interested in real estate, although the margins may be slim, vacancy is so common it just makes sense to have 2-6 months reserves for expenses just so you don’t jeopardize the future of your company. This Sergio guy is super conservative saying 1 or 2 months.
I don't consider myself greedy. Maybe a blessing, if you ask the tenants I have.
Chris S That doesn’t negate that they jeopardize their business by not finding some way to build reserves, id even argue they shouldn’t have gotten into the business if they couldn’t do that. Doesn’t even need to be their own money, could’ve partnered into a property with another investor that had more capital.
If renters don't pay landlords. Landlords will go into bankruptcy, houses will get foreclosed, and tenant will be living on the street and the housing market will explode like 2008.
PLEASE, Talk to your landlord, they are human and they will work with you.
Haha no they wont thet rhink they're god
Jodey Tailor You automatically closed yourself off from the possibility of a better outcome by thinking like that.
Actually the tenants will probably be able to just squat and get away with it while the bank has the property. Friend of mine rented in a complex like that, owner got foreclosed, none of them had to move or pay rent for awhile, it was crazy. Plus you hear stories all the time of how people just squat on property they don't own and there's nothing you can do to make them leave. Only people that are going to be punished are the landlords.
@@TeKnoVKNG23 I bet those people squatting weren't living in good conditions, maintenance wasnt being maintained, landscaping, pest control, trash pickup, utilities. Sounds like a great way to live....
This is what needs to happen. That way the renters can actually afford to buy homes, instead of renting. Too bad landlords. It's over.
I'm just waiting for these insane house prices to get back to normal.
I hope it collapses. Only way prices go down. Greed keeps them high
@@dank3823 if it collapses a lot of people will declare bankruptcy
AIR BNB is the culprit who has pushed rents and real estate prices beyond the reach of the average worker. Every time I visit an Open House (real estate for sale or rent) the property is swarming with AIR BNB "superhosts" exclaiming "Oh, we can put a wall here and make half the living room into another bedroom and then we can get $200 per night instead of $100." Superhosts then bid the properties up based on the unreal cash flow of $200 per night or $6,000 per month. This inflated sale causes all neighboring properties to raise prices. Now that travel and tourism has completely collapsed these over extended AIR BNB superhosts will be facing multiple defaults on properties that are empty and do not make economic positive cash flow when rented on a monthly or yearly basis. There are tens of thousands of AIR BNB hosts , worldwide , with multiple properties drowning in the cheap easy credit that was readily available at the height of the market prior to the "Virus Crisis."
Joe Donzi I hope so. What they’re doing should be illegal.
Just build your own new house. Much better.
I’m confused. They want to cancel rent but are not specifying who will pay the landlords?
They are also proposing cancelling mortgage payments till the crisis is over.
John Thompson But who will pay for the canceled mortgages? Someone has to bear the cost.
@@ericshostakrealestate we are all on the hook for paying.. Taxpayers, who bail everyone out, but its only a problem when TAXPAYERS NEED HELP. Come on Eric, you know this.
Taxpayers are bearing the cost of EVERYTHING. That money should always be used to help "Taxpayers." Remember, WE just bailed out large corporations.. AGAIN!
@@johnthompson3192 I'd settle for having my tax dollars back in my pocket so I can help myself...
In the US maybe 10% or landlords are good people, the remaining 90% are slumlords that overcharged you for a broken apartment but you can’t leave because it’s still relatively cheaper than most other options near by. People living on minimum wage constantly struggle between trying to pay the rent and having money for food
If you have 14 properties and didn't save up for an emergency then you should work on your finance planning in the future.
The World's Tiniest Violin is playing for her.
And if you live your life hating on landlords get over yourself and face reality. After all of this guess what you are going to be doing?? Still renting and never owning anything.
Creed Bratton He said nothing about hating landlords.
Hater...lol ... did u say that about non-minority owned enterprise? U see black, u hate
@@vroor32 Lolz.
There is a much larger picture and that is the gouging that has been going on of renters in large cities. When landlords raise rents continuous in outsize proportions to incomes yearly something was going to happen. Look at the Bay Area, rents have increased 70 pct since 2010, it is not only cruel but unsustainable and people are fed up.
Have you thought that their expenses may be through the roof also?. I can’t speak about the Bay Area, but I used to own a small 5 apartment building in NJ and payed nearly $20,000 in property taxes alone. I had to sell because I wasn’t making any profit.
@@LluviadeOrugas I did not address the issues from the landlords end but here is a dirty little secret, well not a secret, the government does not care about the pain individuals are experiencing so we have to stick it to landlords and real estate interests, they have the ear of the politicians because they pour large sums of money to corrupt them. When they hurt, things happen.
Colin Yapp yes, you’re right, people should understand that the small landlord is like any small business that’s just trying to make it while most, if not all, large apartment complexes in my town are receiving a 40 or 50 year tax abatement.
@@LluviadeOrugas Same in the Bay Area, the large REIT's have bought up older complexes and utilized, prior to the year, the ability to use "no cause" evictions to get rid of tenants. Therefore, instead of 1,200-1,600 per month one bedrooms, they have raised them and the new properties are going for 2,600 - 3,200 dollars. It must end.
Colin Yapp the same is going on here, they’re not paying taxes but they’re charging exorbitant rents. I agree, it must end!.
Landlords need to have at least three months of savings and then $2,500 in a repair fund
This is a good point. I have studied real estate quite a bit and I can't imagine how this lady got into a situation where she owned 14 properties without having an emergency fund saved up. If she has been accumulating properties since 2010, the amount of appreciation she saw all the way through 2019 would have been enough to sell 4 of them and pay off the other 10. Sounds like she was just blindly building up her real estate empire instead of deleveraging while she was way way ahead.
@@shadoninja so true, it's not rocket science, it's more common sense. Sometimes people can't pay rent for whatever reason, you can't expect your tenants to have money saved with out you doing the same "*rolls eyes* and it's crazy to think that there may be even more landlords out there in a same or similar situation for me I have three months rent pretty much at all times and some money for general savings that can go to anything like living expenses/lifestyle
@ Maths, are the landlord responsible for the pandemic, if u saying landlords should have 3 month savings. What is stopping you as a tenant from saving for 3 month also? We have our own bills too and also take care of our families. If government doesn't what tenant to pay rent , they should help landlords pay for mortgage and utilities.
@@letthemsay2029 I think you may have misread, I do have three months and then some in cash in high yield savings accounts and I have bills to pay... I think everyone should also have money saved for times like these.
@Jennifer Miley trigger warning!!! If you're a landlord I'm sorry that you're not prioritizing your savings and your safety with your investments. and if you have tenants that can't pay or that aren't paying there's really your own fault
In the end not every country can afford the lockdown and “work from home” is a privilege for small amount of people
In a service driven economy that's what you get. this country was screwed when the manufactures screwed the workers for slave wages over seas. They tried to sell us the global economy and now for the first time in our life times we see how risky it is to depend on things that we need coming from other countries. Imagine if we were in a real world war. Do you think the things we need are going to make it here even the country allows them to ship it? Not going to happen. I'm still waiting for package that I ordered on March 20 from Australia. if it was some thing that I really needed for my personal health or business I would be screwed. WE need to be able to manufacture every single thing we need here and not to ship over seas for profit. Just what we need to keep the pollution down and it's still quite profitable. The problem we have is the concentrated wealth and greed factor. I don't want any one else money but we need to have laws in place here to insure we have what we need. this free market capitalism only goes so far and it should go with in our borders. We all suffer when it's global. some people call that socialism. It isn't. It's laws to protect the citizens and land of this country. the people that own those factories are more than welcome to build factories in other parts of the world if they want. But we need USA factories here that provide for USA citizens first and foremost. If the free market doesn't want to step up and do it then we need to do it through a new branch of government or do it through the military and hire citizens to work in them. then the profit can stay here to help build military and have funds for FEMA and others disasters instead of people hoarding trillions of dollars so their families are loaded for generation after generation to come while people suffer in crisis. We have the right as citizens to want and demand these types of secure jobs and security for our people and land.
Josephine Bournes most of you with college degrees are buried in debt and completely incompetent in your fields.
I thought you had answer my reply, but realize I had just answered today not five days ago.Because I, too I'am going to work from home, it's not a privilege at all, it is out of necessity , to set up my computer, put in the necessary programs, it does cost money. But from all the jobs being advertised company's are begging for help. ( customer service)
No and even then that still doesn’t take away the threat from the virus!
Josephine Bournes good for you
I am reading some of the comments how Americans don't have savings..awful wages, rent increases, and more...but what is shocking is also businesses don't have "savings" that as soon as this hit...they dropped their employees like a sack of potatoes...I was shocked to see the layoffs happen way before this really hit..so don't point at Americans, point at businesses
OWNS 14 HOMES...THAT IS THE RISK YOU TAKE........HOUSE OF CARDS.........
T C you should buy a 2nd property until you can be close to paying off the 1st. Live and learn.
@gomers44 ……MY POINT IS ALWAYS ABLE TO SURVIVE AT LEAST 6 MONTHS WITH OUT RENT ON SOME PROPERTIES.........NOT LEVERAGE OUT AND COMPLAIN WHEN YOU CANNOT EVEN SURVIVE 2-3 MONTHS WITHOUT RENT PAYMENTS
THERE ARE GOING TO BE TENANTS TAKING ADVANTAGE OF LANDLORDS.....NO RENT THEN EVICTION PROCESS
@Dave Daniels Take the risk if you want but don't expect people that actually work for a living to bail you out when you screw up.
Overplayed her hand in leverage. This would have happened regardless of coronavirus or not
@Dave Daniels At least most of them work for a living, rather than borrowing money so you can live as a leach.
The system truly is collapsing.
Americans have fallen in love with leverage.
Yeah, I think it's a great show, not sure why it was canceled.
Yeah let's call it "debt" no need for fancy words here
Jarvis Addison nothing fancy about the word leverage sir especially in terms of real estate
@@WatchKeslerFlip yeah it's debt, don't pay it back you lose your land/ house
@@jarvisaddison8560 it's good debt tho bro
Hopefully it becomes a good time to buy for those of us saving for our FIRST house.
@Broken Arrow Will someone please think of the poor banks! How will they survive?!
Oh, I really wouldn't think about trying to buy a house for at least the next 3 years. We are facing down the barrel of a major economic crisis that is going to make 2008 pale by comparison. Every week the USA stays mostly closed the deeper that hole is going to get. By now we will be lucky to avoid a full blown depression. So word to the wise to not go in debt any time soon if you can avoid it.
@@ladyhawk7408 Your comment is full of inaccurate information. Now would be a great time to buy if you can afford it.
@Broken Arrow Federal Reserve will save the day again
@@David-bh5le Federal Reserve will save the day again
even voting blue and red we can't get out of this financial mess.
Well she is in the Red....big time. Only Gold would save her now. But a lot of people do not Understand the Value of Holding Gold.
voting have very little meaning in this country, because they both work for the same interest groups. People making a big deal out of it are complete idiots and fooled by the government.
@@tonygoulart3693 you are right , very right. gold has good value can go upto 1900$
@@eternalobi to make rich and protect 1%
@@eternalobi I'm no longer partisan. All the same now working for the same puppet master.
No body has a savings in this country 😞
All the more reason to stop wasting what money one has on $100/mo cell phones/data packages, eating out all the time, $4-$5 Starbucks coffee drinks, high end cars, etc. Most working people don't have savings because they choose not to save.
@@NGC6144 Most working people don't have money because they can't afford to save. Average income in Idaho is $9/hour and $12.50 hour at highest Unless you have degree and housing is $800-$1000 and then there's food,kids, hygiene, healthcare, gas, and other basic living essentials
My savings went to insulin for just a month. As a type 1 diabetic, I lost my health insurance because I lost my job. So there went the 1500 I did have in savings. Waiting to get help from the manufacturer/PA program and Medicaid isnt not extended in my state.
@NonyaBusiness! You didn't read my posts carefully. I stated people who earn over 50k to 100k, not just 100k. For anyone that is struggling and/or low wage they have no business casually spending money on the things I mentioned. Older generations didn't spend in comparison to how modern people do for day to day living, services and entertainment. Much of this is expensive conveniences.
Trump screwed us? He just has to be blamed? Get out of here.
@NonyaBusiness! A lot of folks don't realize it is terrible times, as this is the way they have always lived.
The landlord's that have 16 houses with 16 mortgages are the funniest to me. I mean who could have thought leveraging your equity that much could carry risks!
That is definitely an issue. However, it is absolutely wrong of the government to tell landlords that they cannot evict a tenant for not paying. What’s next, requiring doctors to provide free medical care? Grocery stores to provide food free of charge? It’s disgusting.
@@jimziemer474
Comparing landlords, many of them slumlords, and some voyeurs, to honest businesses such as doctors, grocers and utility companies is absurd
Hard for me to feel bad for this landlord. Instead of setting aside cash for a rainy day, she got greedy and used all of her cash flow to lever up on more investment properties. Now she can’t even stay afloat with half of her usual revenue. Housing is an investment, but landlords these days seem to never underwrite the risk.
Maybe, just maybe now, if tenants set aside cash for a rainy day, Landlords like Fadhila would not be in the position they are in.
Sounds like she's over-leveraged. I don't understand how someone can acquire that many properties in such a short time given that lender consider debt to income ratio that is increasingly worse the more properties you acquire. The best practices for personal finance says that you should keep 6 months living expenses on hand should you lose your job. Another savvy investor will pick up her distressed properties when the downturn comes.
That’s true, but that 6 month of funds will be worth 2-3% lower due to inflation if held in hand.
@@uncoveredtruth2088 savings costs money, landlords are hoping the workers they leech off of will pay their savings for the chance to live in a country with no jobs for two months. Yeah right, that's the market baby enjoy the decline and ya a bank makes 14 mortgages on pure rent income is highly suspect 🤔
to get some land.. some time you had to buy alot... and not everything can be split down for cost...
Another sob story by WSJ I watched later on: AirBnb empire landlords also in a similar situation and may lose everything!
You can use existing unpaid mortgages as a collateral for your next mortgage...
That's it..am building my Tiny home..This situation has taught me I don't need much to be happy..
Same here sugar🙏
That is exactly what we are doing. Went solar years ago. No credit cards. I bought my car. I canceled cable years ago. I keep it very simple. I will grow food again once we thaw out.
4:39 a landlord having to go find a job...oh, the horror
I’m a landlord who works two jobs as a lab scientist , and plenty in saving (1 year payments), and yet I’m worry. I don’t know how this lady does it. Lesson learn, next time she’ll be more prepared.
Most individual landlords I know have full time jobs and 2 or 3 rent houses for supplemental income. Not all the landlords in America are fat cat corporations or millionaires. Many just try to find was to get a little more beyond their paycheck.
bot team This true. I do not disclose that I’m a landlord due to hostility and resentment. I work 3 jobs at a time to make things happen. Some tenants wreck your property then wonder why rent goes up.
Whiner wanting to live off someone for free. Thats fair.
I think I'll take the Dave Ramsey approach and just not over leverage myself with 30 mortgage payments
I hope you also get a job making millions a year like Dave Ramsey has, otherwise you won't ever get ahead.
AIR BNB is the culprit who has pushed rents and real estate prices beyond the reach of the average worker. Every time I visit an Open House (real estate for sale or rent) the property is swarming with AIR BNB "superhosts" exclaiming "Oh, we can put a wall here and make half the living room into another bedroom and then we can get $200 per night instead of $100." Superhosts then bid the properties up based on the unreal cash flow of $200 per night or $6,000 per month. This inflated sale causes all neighboring properties to raise prices. Now that travel and tourism has completely collapsed these over extended AIR BNB superhosts will be facing multiple defaults on properties that are empty and do not make economic positive cash flow when rented on a monthly or yearly basis. There are tens of thousands of AIR BNB hosts , worldwide , with multiple properties drowning in the cheap easy credit that was readily available at the height of the market prior to the "Virus Crisis."
@stephen kroll Dave Ramsey believes in saving more and paying off all forms of debt, correct? IS that the gist?
@@moviedude22 pretty much
His is approach is the worst. You won’t create wealth and will work your whole life. Look into fire. It’s a smarter way to invest and retire early
Unsure how a person who owns 14 properties is now broke after 2 months of non payments🤔. Please note she did not disclose the amount she owes to her mortgage lenders as anyone with a real estate license would tell you she most likely owns all but 3-5 of the properties out right based off DTI loan approval guidelines. As a multiple property owner my tenants have 6 months free period on me. No back end repayments. For once people need to stop focusing on themselves. I am only 40 with 4 kids and able to do this. Unsure how someone at 61 who should have almost zero revolving debt outside of mortgages can not. My tenants have been faithful payers for years on properties most of which I own out right. So yeah I keep a little something set aside as kicking tenants out for non payment is not an option. And yes the six months started day 1 of our state wide stay at home and NONE of my tenants owe a dime for the free six months. Some landlords. SMH. If she is in over her head, then she should be forced to sell one of the vacant units not be bailed out by taxpayers...as essentially you have a wealthy person asking a poorer person to prop them up. Not understanding her logic as her problem has an easy solution. Sell 1-2 of your 14 properties as I guess every 61 year old needs 16k per month to live her life. SMH. Help your fellow American and just give them 6 free months no charge and a graduated pro rate plan on month seven for individuals still unemployed.
"Soul Surfer" wrote
> My tenants have been faithful payers for years
That hasn't been her experience, now has it ?!
Would you deny people the right to no-fault divorce
just because you don't want a divorce yourself ?
Likewise, "no-cause eviction" is a basic human right.
Why is homelessness worse now than ever before ?
Do they deserve to die ?
How will "free" money solve this problem ?
Jeff Relf,
I understand but disagree. Thanks for your reply.
"Soul Surfer" replied ( to me ):
> > "no-cause eviction" is a basic human right.
>
> I understand but disagree.
If you lived in Seattle, and I rented from you,
I could make your life a living hεll, and
I there'd be nothing you could do about it;
no judge, no cop, would help you.
> > Why is homelessness worse now than ever before ?
> > Do they deserve to die ?
> > How will "free" money solve this problem ?
Ignorance is far from bliss.
@@soulsurfer8797
ThePeoplesChamp please refrain from threatening me. Have a great day.
If everyone had just 3 months of savings, we would be in good shape now. They never heard the saying, "Winter is coming."
@Harry Sachs Necessities? Like $1000 iPhones. $100 cell phone bill. $50 internet. $50 subscriptions. $550 car payment. are those necessities?
untouchable360x just because you had the means to save doesnt make gives you the right to lecture anyobe else .
6 months savings your golden !
Many probably do, but they are using this opportunity to scam landlords. People are just not honest.
People falsely think that being a landlord is nothing more than collecting easy rent each month. I refuse to ever be a landlord. Look at AirBnB ... Those super hosts have more than a dozen properties .... most of which owe a mortgage. You've been convinced that heavy debt is the way to make money. One step forward with a LARGE step back. SMH.
You're right, not everyone is a slumlord or large investment firm, but most are.
Bar and Bell Home Fitness sometimes it can be good, sometimes bad. I have a property that I partially rent out and it helps me. I’m talking about the same issue in a video oh my channel! Check it out!
@@think-tankerwithjensidorov6145 you have "A" property. This lady has 14. Not the same thing. You are smart. You are not severely over leveraged. Good job :)
@@consumerdebtchitchat Is it over leveraged? She seemed to be doing just fine until the government got involved.
@@GreatWes77 If 4 weeks can destroy her income - I believe she owns too many homes. I could be wrong and I'm not an expert. I don't think she ever studied the economic potential of losing rental income and how much she would need in savings to support such a loss. Rental property is a business game. Which is fine, but don't expect to be bailed out if you lose the gamble.
I purchased my condo 1 month before we ever heard of corona virus. Before purchasing, I ran the numbers to see if I could make my mortgage and HOA payment on half my current take-home income .. or a p/t job ... or even unemployment. I can. It does not factor my savings. I could have purchased 2.5 times more than what I did, but I considered maintenance and economic emergencies.
I don't think she ran those types of numbers. She looked at the rental value only ... again. I might be wrong.
Why is it that we’re suppose to be this rich country but other countries already helping their people by canceling bills Canada gives their people 2000.00 a month
Yes it's very sad america just doesent care about its citizens the way canada does...I have lived in canada for 15 years and would never go back
2000 is a loan that must be paid in coming years. Deducted from individual taxes. Read the bill
Bro, did you even read the rules of the $2k stimulous in Canada? I am Canadian and I live in Vancouver, the second most expensive city here. That $2k is essentially a loan and you have to pay taxes on it. This isn't free money. If you're on disability or any sort of preexisting government help, you are legally not entitled to this stimulous. People are scamming the system left right and center. Now the government is cracking down on people who have abused the CERB payouts. If you receive government support like disability, tax credits, etc and you also get the CERB then you basically have screwed yourself because come tax time, all your social benefits will evaporate cause your income has gone up. You also only qualify for CERB if you filed taxes and earned more than $5k in 2019. You wouldn't get EI and the CERB so a lot of people don't qualify for either. Better do your research before you give the Canadian government credit it doesn't deserve.
1400 after taxes and it will inflate market , stop believing your liberal media like Canada is perfect , we are struggling here too
We broke. 25 trillion in debt
I have a feeling that "worst case scenario" has arrived ??👀💀😭
No Anna, this is tame compared to the very near future. A lot of people think that this economy is going to recover by Maybe the end of the year? It’s not, especially when local governments are opening up their states way to soon, we are about to have the second wave of this pandemic, the U. S. Leads the world In Covid deaths which will keep growing.
we need a war to beat china down for this i mean main beatdown and hold them accountable for their crimes
In Los Angeles county, they announced tax increases starting June. So a bunch of people lost their jobs, and oh yeah your taxes have gone up.
Hyperinflation
The US government is broke.
Doug Casey: What if they gave a tax and nobody paid?
Overleveraging herself on property mortgages to rent out is the risk she took and her fault. No sympathy tbh
@ Long Zeng
~ you beat me to it, exactly what I was going to say.
@_ David _ no
@John Doe lol
@_ David _ she "should" not be able to this is america we protect tenants here .
Nah, it's normal to buy real estate and rent it out, and then finance mortgage with rent payments. If you do it this way, you'll have similar to the stock market returns (~10-20%). If you don't use the leverage, i.e. you don't enter new mortgages until you pay out current ones, your return will be subpar (~3-5%), so nobody would invest in real estate.
She’s going to have to go through the eviction process for some, and will probably have to sell some of her properties. Scale back. It’s that simple.
Biff Bifford I’m talking about the same issue in a video oh my channel! Check it out!
Agree to the second part of your answer. As for the first part - On March 20th, the Governor signed an Executive Order implementing a 90-day moratorium on evictions for residential and commercial tenants. At this time, eviction proceedings have been suspended and no one can be evicted in New York State until at least June 20th.
hcr.ny.gov/covid-19-helpful-links-and-faqs#tenants
Biff Bifford Yah, it's just that simple for someone who has never invested everything in a business. No one is going to be buying rentals in an economy like this.
bluewater454 Tough spit. It really is that easy - even though life isn’t always easy. You take the good with the bad. If she doesn’t make the decision, a decision will be made for her. Everything in life is a risk vs reward balance. Things were good for many years. Now she’s experiencing a time where things are not so good. Failing to plan for a bad economic landscape may provide her with some tough lessons.
Kajenx Have you been living under a rock for the past few months? The economy is shut down. We are probably going into a depression. People aren't going to be buying anything right now. Probably won't be for a long time. Get a clue.
Tenents will take advantage of this mess and not pay on purpose.
Yess 😀 😊 ....
@Terry Kane that s not very nice. And I am an M.D.
I own three homes. My renters are not paying their rent. But I can’t be upset with them. I would never put them out. People are dealing with enough, without having to worry about having a roof over their heads. I feel for the owners and the renters.
You're a parasite on society.
Jack James wow! And what do you contribute?
Jack James I’m sure you own nothing and contribute nothing to society. Go back into your cave.
Wow nice to hear there are decent human beings who are landlords out there still. My husband was laid off in March due to COVID-19, been on unemployment and we have exhausted all government supplements and savings to continue paying full rent until now. We had to make the difficult decision to inform our landlord we can only pay 50% of rent for the foreseeable future until we can secure employment. This more than covers his property taxes but thinks we don’t know that. We stated we are fully aware that the debt will accrue and we will work with the landlord on payments (btw we have maintained full transparency on our situation since March). He had said the rent moratorium ‘doesn’t apply to him’ and we have to leave immediately and find somewhere else. His voice messages are becoming increasingly more aggressive so we have left it in the hands of the law now. I am honestly scared he will become violent. We have tried to do all we can, we sympathize with him but its kind of hard when he is behaving so terribly and has 3 Mercedes sitting on his driveway and no other rental properties. He also makes no effort to look up what homeowner grants are available to him or mortgage referral even though I provide him with this information. It’s like talking to a brick wall. I fear this situation is only going to get worse and worse for many in the months to come.
You need to pay tax and/or property tax as well. Who’s going to feel sorry for you?
This lady, mrs hussein, definetely taken more properties than she can handle making payments. To her, property is like the stockmarket, always booming. She does not have 6 months saved. That is why she is in trouble.
She would have been better off own few homes, not 14 homes that she can't pay off! This is a classic example of greed. We need to learn to live with enough not more.
Her issue is the moratorium on rent. Many large rental companies own thousands of apartments this logic doesn’t account for diversity in holding many units minimizing risk.
What about the tenants who don't have the savings to cover even one month of rent? I don't think you can put the blame solely on her.
I mentioned her is because the real issue here is people like her leaves many people unable to buy their first house because she monopolise the market. Sadly the world is full of these people.
Kshitij Raj I agree one is a human the other is a company Financially diversification makes sense for both. Inadequate cash reserves will affect both as well.
Yes, landlords have a lot of bills to pay. They have to make payments to the bank and property tax to the local government. Insurance to insurance companies. They do not make a big profit out of rent. If tenants stop paying rent, landlord will have to put property for sale or foreclosure. When this happen, tenant will have to move out. Both landlord and tenant will suffer loses. The winner is the bank. They get the property back and resale it. I suggest those who has fund should keep paying your landlord or pay what you can if you want roof on your head. Try to locate food banks that are close to you to get free grocery to save money. Call gas and electric companies up and ask for help. Do not spend your money on unnecessary things. Your rent should be your priority if you don't want to be homeless.
Tennant moving out is as easy as than its not a loss at all intact the increase in properties on the market will likely allow some renters to own a home instead of renting their fifth they might buy their first.
J C best statement I’ve heard.
16000 dollars a month and she has does not have fully funded emergency account that is her fault.
Absolutely
$15,000 in Mortgage payments and $1000 to live on - the bank will get you.
Time for her to sell a property or two to save the rest. Also, where's her savings? 16k a month and none left over?
A. L her over head could be 10k a month. She is still paying for the homes while the renters pay her. It usually take 25-30 years to pay a hone off. Most likely she didn’t buy 14 homes out right. She has a mortgage to pay herself. Most rental properties don’t see great return until they pay their mortgages off for their properties. Also with that left over money, with 14 homes there are great repair expenses.
A.L,
obviously you don’t own a home otherwise you’d know. She has a Mortgage payment, insurance, property taxes, repair cost, may an umbrella insurance policy in case someone sued her in court.
She said she took in 6,300 which isn't enough to pay the mortgage, it's called over head. The government needs to offer rent assistance of they're going to block evictions.
What? Who is she selling too?
@@magoo9279 exactly! But you'd be surprised theres still people out there looking to purchase a home. Guess because of low rates now due to covid. Rates dropped I think...
Banks have to make money for their owners, investors. Landlords have to pay the mortgages. Renters have to pay the rent. Gov could do something about this trail of money. Gov could ask banks to postpone the collection of the mortgages.
There should have been something in the stimulus bill that Cushions Tenants and Landlords, and Mortgage Holders from the Covid 19 Crisis, a lot of People's livelihoods are at stake here. But they gave Billions to Big Corporations.
banks control congress, they want their money
They’re trying to get rid of the middle class. That is why there were no bailout for small landlords and mortgage holders.
Sounds like she needs to sell at a loss. That’s part of investing.
Linebackeronehunna Ant racist much?
Sell to who though?
she is too greedy and over her head.
Yeah it's a big sellers market. Middle class people also own and rent out houses they pay mortgages on.
It is not right for someone to ruin someone else future because they don't pay their rent. If you can't afford it move out. It is the right thing to do.
So as a investor she has no savings Wow ..
I picked up on that too. 14 homes and no emergency fund. NY is a tough state to do rentals, but have a plan at least.
mike york I mean it’s also a kind of confirmation bias right? The ones who come out whining or crying foul are the problem ones. There’s definitely plenty who are just silently a little ticked off but doing okay
Micheal, NYC is tough and immediate areas surrounding it. She lives 3 hours away. That is far cheaper and very average in cost.
That's the way an investor works! The tenants pay for the mortgage, while the landlord pay for what tenants break, the house need repairs, does any of you know how much an electrician charge? A plumber? A carpenter?
Yes!! Picked up on that, 14 homes with rental income of 16000 monthly? And most are still mortgaged? Yeah, that’s a horrible business model. Won’t be surprised if her NOI is a negative number. Yikes
meanwhile the LA lakers worth billions are receiving money...USA!
You can thank Trump for that. The reason the Democrats stalled the stimulus bill in the House was because they wanted to add oversight to the bill that Republicans in the Senate passed. The Republicans fought against it, but finally agreed, then after Trump signed the bill he fired the Inspector General days later who was to supposed to oversee the corporate tax payer handout. What really blows my mind is in 2018 corporations paid only $205 billion in federal taxes, but received $500 billion in direct stimulus, trillion in interest free loans from the Fed, and most of the 2.2 trillion stimulus will flow their way. Individuals paid $1.7 trillion in federal taxes in 2018, but only received $300 billion in stimulus checks (like myself, most of us will probably never get a check), most of which is going to be spent with the Fortune 500 corporations.
*Gave back money. Blame the two wings of the same bird making it the masses vs the powerful.
They gave the money back, don't be ignorant.
There will always be corruption, just like the sun rises and sets.
At least the Trump Admin is doing something.
Or cruise lines that dont pay taxes in the us
Got to love capitalism
Why would anyone take on that many properties. Then she claims they need repairs yeah they look like there falling apart.
She “only” took in 75k a year average...sounds to me like she is over leveraged and is finally having to come to terms with her risky investment choices. Even in a best case scenario, she would only bring in 192k annually, which is only about 40k more than the median home cost in her area. So even if she has zero costs, and perfect tenants, it’s still very risky for her to purchase more than an house per year. She has 14 over a 10 year period.
Good riddance. She brought this on herself.
Dude, did you really just multiply the value she took in a month by 12 and assumed she will retain that minimum in the next few months as a profit and assumed she's in a better spot than most Americans?
Seiku Yes, because the truth is...she really IS undoubtedly better off than most Americans.
The 75k a year is what she would make if her pandemic levels of income continue for 12 months. So she makes more than the average American, even if the pandemic continues for over a year. She was making much, much more than this previously.
Furthermore, she has 14 houses, each of which are presumably taken out on a loan, otherwise she wouldn’t be complaining about not being able to pay them off.
If we assume that every house is taken out on a 30 year mortgage, it is somewhat reasonable to say that she owns 3% of the homes value after each year has passed. So even a conservative estimate would say that she owns between 30% and 3% of each of these houses. Even if we give her the benefit of the doubt and say 10%, that means she owns 10% of 14 houses...
I paid my landlord in April until the end of the year.. i was already paid until may.. i paid 6 months and got 1 month free
If you can pay your rent, pay it. Even if it means cutting back on something else.
Think of it this way: If your landlord can't pay their bills, you may not have a home in the future.
10 years, 14 properties.
No money in the bank to cover in case of problems.
Not a very good investing strategy.
My landlord is waiving late fees during this pandemic. I appreciate it. Late fees are what really kills us.
Your landlord is just happy that he is receiving rent payments at all.
All of this money that they have collected over the years they should have some kind of funds for the help them on.
That is what I just said, we agree. Isn't there a budject in place smwhere.
She over leveraged herself into this crisis. She have taken smaller amounts or lesser mortgages.
How could she have predicted a plague? It sounds like she was fine until people stopped paying.
Greed is everyone weakness how much more is enough?
Sell your 14 houses. Pay off your debts. Live frugally on the remainder.
she is greedy, i hope she learn from her mistake.
@@dangda-ww7de agreed.
Being a small business property owner became the riskiest proposition after 2008. Once the banks saw they could commit mortgage fraud en masse and no one would go to jail for it, it's become a revolving door of suckering in buyers only to foreclose on them 5-6 years into the loan. I got rid of my last rental house in 2012, gave it back to the bank because they refused to refinance me even though I wasnt upside down in the loan, was current on it and even offered to more money down in order to refinance. They refused. So i refused to continue paying them.
Could this lead to another mortgage housing crisis if these over-leveraged landlords default on their mortgage or loan payments?
Forgive renters who _really_ can't pay, but evict the deadbeats, cuz there are many.
ro pro yeah but how do you decide which people are worthy of getting a house, and who isn’t?
Show proof they were personally affected by the crisis. If not eviction is a must. I find it sad folks have no integrity these days.
Oh no, she will have to work. What a horror!
How do you think she afforded to accumulate this holding in real estate? I bet she worked hard and saved almost everything and invested it. But lazy jealous people will never understand what it takes to become rich.
Yeah, send your 60+ year old mother to find jobs now.
@@humanbeing5918 No she didn't. If she put a lot of her hard earned money into house investment, then she wouldn't have crushing mortgage payments. 1 month of crisis and her "system" collapses. She even didn't have savings for "black days". She obviously made minimal first mortgage payment and took risk by buying new and new houses while previous were not paid. It is lazy and irresponsible financial behavior.
Sounds good doesn't it. Buy a house get a renter and have cash flow. Housing just isn't affordable anymore. Part of the problem is that one person can own 14 houses on credit.
Ikr, such BS and most of the time they are foreigners
These small landlords forget that running a small business is risky, and just because you offer something that people want doesn’t guarantee that you’re going to be able to collect money from your customers. I once ran a medical clinic with my wife. There was overwhelming demand for the services that we offered, but it was exceedingly difficult to get paid. Ultimately, we got what we could for the business by selling to a hospital group. We still lost money. But guess what, the government never bailed us out. I didn’t expect the government to bail us out. I didn’t go on television (or RUclips) with a “poor me” story. This is the risk that you take on when you go into business for yourself. Pretty simple. (I have considered purchasing a property for rental/investment, but I would not be so heavily leveraged that I would be wiped out if the tenant had trouble paying rent. When you take on lots of debt, you increase risk. That’s a well-known fact.)
Here's an idea. Sell one of your 14 houses.
Who is buying nowdays?
@@AmwayQuixtar No one, so she'll have to sell at a lower price to stay afloat.
Re Up I’ve read many comments. You’re not dealing with smart people here.
How did she over leverage her self I hope they go into foreclosure and some young family Buys one of her houses
Maybe landlords shouldn’t buy houses they can’t afford. If you depend on renters to pay your bills then you own too many houses. It’s your own fault.
Shut up
@philip erdman - BEST COMMENT i've read yet. You just said it perfectly! "If you depend on renters to pay your bills then you own too many houses. It’s your own fault."
I agree ,..I own 42 rental houses myself,..paid for in cash.
My tenants are not paying rent because I told them they had 6 months on me till this ends.
I figured it this way ,.. these people made my life very financially comfortable for years now ,.. it's the least i can do to stand by them when they are in trouble.
Yup they took the risk
Public shaming is what is needed for all deadbeat tenants. Not the ones that are truly hurt by COVID-19, just the ones that are gaming the system.
CUOMO: VERY SIMPLE, find a job as an ESSENTIAL WORKER, starting tomorrow.
OK where and how do I do this…???
Easy to say not so easy to do right !!!
you cant just walk into a food industry and demand a job.
Army of Gog your one word statement has confused me because of the context. Care to explain why you called me a bozo?
@@StrxwBunnyMilk Army of Grog please recruit me!
Traitor trump is trying to kill us
When someone stays in someone else's house with out paying why is it not considered a break in?
Although we clearly see your point, the occupants of the dwelling, were willingly given permission to do so. The problem is why does it take so long to remedy the transgression of removing non paying tenants or those who refuse to move after being given a 30/60/90 day notice to do so.
stevenmintz1 land isn’t actually owned just shared
Good luck trying to get all those people thrown out of their apartments. The courts will be overwhelmed with eviction cases and will take months or years to get to each case. Especially in California.
Because you were collecting rent. So go thru the process like everybody else oh wait u can't take them to court because u were collecting rent without paying taxes. Oh sorry u did pay taxes will then that's what court is 4. Oh you don't want to go Tru that process then why let them stay in your house 🤔
It's definitely trespassing, and it's definitely theft, but...they didn't actually break in.
The ridiculous thing about this is that some people take advantage of these types of situations. So some of these tenants may not affected financially by the crisis, but will take advantage of it, just so that they don't have to pay rent. Here in Az there is a suspension of evictions, both residentially and commercially. But it is ONLY a suspension. So after that 120 day period, if you didnt pay your rent, you could still be evicted. I think if a court saw proof then they may want the landlord to work with the tenants, but regardless, technically they could still be evicted. But some people think that they should be given a free pass, but the owners of these properties have Bill's to pay to. Ask these tenants, why they should be given a free pass, when the landlord is not. Fyi. I'm a tenant
Eventually the tenants will have to pay the rent and that's what the tenants don't get. They will be evicted and good luck finding new digs. I suspect when this is over, landlords will RAISE the rent to cover losses. Not now .. but eventually.
.. just like corporations take advantage of all the loop holes to make more moola.
We so agree DeAn!!!
Another issue is that America needs to create more homeowners and reduce renters. There’s absolutely no safety net for Renters.
My husband and I own outright an income property in Hawaii. The current tenant is a good tenant and has a modest retirement income so is able to pay the monthly rent while staying at home in self-quarantine. We have let our property manager know that if the tenant suddenly was unable to pay rent during the pandemic, we would allow the tenant to delay paying the rent without penalty. The last thing we want to do is evict someone during a pandemic because that would be cruel and could expose the tenant to the virus. And we do not want the property going vacant and maybe getting vandalized or getting filled with squatters.
We fully expect everyone, no matter how wealthy they may be right now, will eventually feel the economic impact of this pandemic and the deep recession that is likely to follow. I believe that protecting lives is far more important having a steady income. I am prepared to live even more frugally, to watch our stock portfolio dwindle in value and to do my part to help my neighbors through these difficult times. We are all in this together and treating one another fairly is what civilized people do. How we as individuals chose to treat others during difficult times is a good measure of character. When someone places their income, investments and financial goals ahead of public safety and the lives of their customers or tenants, that tells me a lot about that person's character.
No sympathy for landlords owning multiple properties, profiting off of people then complaining when they can profit anymore. These greedy people took out multiple loans thinking they would make even more money. Like any business that you start, there are risks, they took that risk and now they are crying when things don’t go their way.
Seriously fkrs are do different from any big corporations they just want more and more money
When I owned property if no tenants paid I could still pay my mortgages, that is being responsible, I tell the young guys buying property to pay each building off, they don't listen, they keep buying, it's smart business to take care of yourself and business, it isn't the government responsibility to pay for everything I worked day and night to get ahead so I say suck it up buttercup.
I believe that 5% of rent paid to landlords should go into a fund that is returned to the renter when they exit the property. It'd be a way to bridge the gap between renting and owning. Since landlords are allowed to charge more and more every year, it seems like a way to address the fundamental disadvantages facing the non-landed and destitute class, which continues to grow every year.
what about damages? who pays when tenants destroy houses?
Thank You WSJ for running a story from the Landlords point of view. There are nearly enough news outlets focusing on both sides of the story. We have added this video to our Playlists.
She might have to get a job?! OH THE HUMANITY
We need to develop new indices for economic health. Pre-‘rona was fictitiously strong.
How so? Unemployment was extremely low...
If anything, it does show that people need to have more cash savings.
@eh - totally agree!! "fictitiously strong."
Use another measure than GDP
What happens to landlords ? , mmmm They just become "Land Owners" ?
But you know - that's the problem. They don't own that either. They were just able to acquire a loan; while most of us don't even try anymore.
bhavar kumavat
Worst even if you don’t have a mortgage their bills to pay!!!
They want them to default either on the loan or not being able to pay taxes insurance and all the other things that are connected to land ownership
This government is cursed I don’t care what they do nothings going to change and they can pump $100 trillion into the economy it’s done ✅
Hard to feel sympathy for someone who owns 15 properties whereby many people worry about putting food on the table....
She might have to just sell off some of her properties wholesale.....
Look, if you took a risk and got mortgages for 14 houses, then you should bear the full consequences when those houses aren't rented and you can't afford the mortgages. We shouldn't just bail out people who've been going out and spending more than they can afford in order to get rich.
I'm a landlord with a couple of rental houses. Because I have mortgages on them, I make only a hundred bucks or so after I've paid for the principle, interest, insurance, taxes, maintenance, and repairs. Most landlords are small time who have these homes as long term investments. They make little to no money!
So you only make a small profit for your appreciating investment ? Ohh.. poor baby! You're crying up the wrong tree looking for sympathy. Borrow against your houses if you need $
You shouldn't have made that investment then
That's because it was bad investment. Been telling you people who were buying rental properties that dont make money not to do it. But you were all blinded by greed.
If we didn’t make the investment then you idiots wouldn’t have someone to rent from.
If you couldn’t afford the rent then don’t rent .
Honestly, being a landlord today is probably not as pleasing as it was in the past. Tenants have wayy to much wiggle room. Imagine someone living in your home, not paying you, and you not being able to do anything about it. It doesn’t get sadder than that.
“How to prepare for a pandemic,” the book no one wrote.
Hi Jorge J. That book has been written for decades. The title of that book is "You save money for expenses for at least six months." Ohh wait, it might be, "To be prepared in a crisis... save money for my NEEDS and stop spending it on my WANTS!!"
The Landlord Advocates Easier for some than others in this gig economy, but I’m with you.
Actually, I heard Obama had at least a plan but it was scrapped because Obama did it...
Affordable housing is a joke, so maybe it's time these greedy landlords have a wake up call.
The whole real estate sector in this country is based on a pyramid scheme. People HAVE to sell for more for the same product. It doesn’t go up I’m value, the property gets depreciated over time. But because of high rates on mortgages it causes people to HAVE to sell higher to make a profit or break even.
@@Pcarnevaaa I am just hoping this is on of the broken systems that get a major overhaul due to the current situation. No one has a savings and lives paycheck to paycheck due to the disparity of wages, the cost of housing and a society that has had middle class eradicated. Praying this situation will make some long overdue changes happen.
Andrew Yang. American's missed out on such a great opportunity.
Now, it will be bought up by banks.
Try skipping rent once they own them.
@Staying Out The Way they are the one's who write and change the rules
SO GOV GIVES $1200 + 600 ON TOP OF YOUR UNEMPLOYMENT AND YOU STILL CANT MAKE RENT?
PEOPLE THINK THERES NO REPERCUSSIONS FOR ANYTHING RN
Thank you. An extra $2400 (untaxable) a month on top of what your state unemploment pays. In NY that means up to $4400 a month. most are taking home more than working
Most on unemployment are making more than they made at their jobs they lost. Americans are just selfish asshats anymore. This is coming from an American.
I guess the answer to this question is simple, the landlords will be in the same shoes as everyone else!!
People can get new jobs and get unemployment. Owners lose. Period...no relief...
If land lords were corporations not in the same shoes
LOL. YOU AINT LYING.