Plan to pay 100% of the rent debt that has accrued during the pandemic
To say that the past year has been a challenging time for our community is an understatement, but Bay Property Group can finally see the horizon.
When COVID-19 reared its ugly head, the first reflex of lawmakers was to stabilize tenancies by prohibiting evictions for nonpayment of rent. Throughout the long course of the pandemic, the public policy of preventing displacement of tenants largely ignored the needs of cash-strapped landlords who have financial hardships of their own.
Lawmakers have finally heard the pain of rental housing providers
Under Senate Bill 91, landlords could conceivably recoup 80% of rent debt that amassed during the pandemic, as long as the balance of 20% is forgiven.
We applauded the bill because it is much more attractive to recover 80 cents on the dollar than to be dragged into the morass of chasing rent debt. A judgment, after all, is a piece of paper and the actual collection of the money owed is an altogether different matter. Our broker of record, Daniel Bornstein, is a strong advocate for availing the rental assistance program and makes his case in this recently recorded webinar.
An embattled governor proposes to erase all COVID-related rent debt
With the Golden State sitting on a huge budget surplus and being infused with $5.2 billion in rental assistance funds from the federal government, Governor Newsom has made the promise that California will pay 100% of rents that have been missed by eligible, lower-income tenants.
Not all applicants will qualify, but in concert with our legal partners at Bornstein Law, we can help our clients determine eligibility and guide them along through the application process to get cash flowing again.
Fortunately, through the careful selection of tenants and close communication, the vast majority of residents living within the portfolio of properties we manage are faithfully paying rent. By and large, then, our clients have not had to tap into rental assistance funds.
However far and few between, there have been aberrations. When there are missed rent payments, our property managers proactively address them.
More often than not, we are able to resolve rent shortfalls amicably, but when our efforts are exhausted, we have a team of attorneys who can enter into the conversation at no cost.