What The Eviction Moratorium Means For Real Estate Investors in San Antonio

What The Eviction Moratorium Means For Real Estate Investors in San Antonio

On December 31, 2020, the eviction moratorium is set to expire.  The CDC pushed for this moratorium in order to prevent the spread of COVID19 through a wave of evictions.  This order was intended for Renters who had previously qualified for the CARES Act, and having fallen behind on rent payments would have been forced to live in crowded conditions, further spreading the virus.   These tenants must have proved that the pandemic caused hardship and that they have applied for all available financial assistance.  They must also state that they would likely become homeless if evicted. Here’s what the eviction moratorium means for real estate investors in San Antonio.

Other Reasons

Evictions can still be processed for real estate investors in San Antonio for reasons other than non-payment of rent.  Criminal acts by tenants, destruction of property or other legitimate reasons for evictions should still not be tolerated and evictions can be processed for such acts.  If and when filing an eviction, be absolutely certain that your tenant does not qualify for the terms of any standing order regarding the eviction moratorium.  Be prepared to withdraw from the eviction proceedings if a signed document is produced by the tenant confirming financial hardship.  You must be aware of all CDC order in addition to any any state or local government orders regarding tenants and evictions.  Landlords who violated such orders may be faced with civil penalties and can be fined rather hefty sums.  Tenants must be able to respond affirmatively to all qualifying questions otherwise they face penalties of perjury. 

Partial Rent 

All unpaid rent and monthly rent payments will be due in full once the order expires.   It may be a good idea to discuss a plan with your tenants for them to make partial payments towards their monthly rent payments to the best of their ability during the covered period.   Per the rules of the eviction moratorium, unpaid rent for real estate investors in San Antonio can either finance the missing rental income from other sources or sue the tenants for back rent.  Of course the later is problematic at best since financial hardship is what caused the non-payment in the first place. 

Filing Evictions

Real estate investors in San Antonio can start the eviction process prior to the expiration of the order although cases won’t be heard until after the order expires. Still, for the time period covered by the order, evictions cannot take place. This update provides clarification on what is and isn’t covered under the guidelines of the order and can be found under the frequently asked questions section of the CDC website, as a document.  Evictions can be expected to take anywhere from 3 to 30 days in most cases.  Courts can begin processing evictions once the moratoriums put in place due to the pandemic have expired, depending on the local laws governing the property.  It’s possible that evictions could begin as early as January 2021. There have been several court cases filed on behalf of landlords against the CDC, based on the the premise that the CDC doesn’t have the constitutional authority to enact policies on rent.

Repayment Plan

Real estate investors in San Antonio should consider some form of a repayment plan in order to retrieve any back rent that has accumulated during the eviction moratorium.  If good relationships exist between the landlord and tenant, it may be possible for any back rent owed be distributed over the coming months in addition to the regular rent payment.  This would be ideal if both parties are able to afford this option.  This would be a great practice if it could help keep great tenants in place.  This also does a great service to family that has been dealt some bad luck, allowing them to keep their home.  It would be best for all parties if you could work with your tenants well in advance of the looming deadline. 

Document Communication

Give the current protection of tenants under the eviction moratorium, real estate investors in San Antonio  should keep diligent records of all communications with the tenant.  This will serve you well later since you will be able to provide evidence of your actions and steps taken to be flexible with your tenants should things progress legally.  Any facts omitted by your tenant during court proceedings can be proven with the documents you provide.  Good record-keeping could be invaluable in this case.   

Big Buck Home Buyers will help you understand your rights as a landlord and all that the eviction moratorium means for real estate investors in San Antonio. Big Buck Home Buyers is happy to answer any of your questions or concerns about what will happen to renters after the new year. Just reach out to our team by sending us a message or giving us a call today at ‪(210) 920-5280‬!~

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