Category: Real Estate

The covid-19 pandemic has caused the foundation for the rental crisis in the future. The screening criteria are being tightened by the landlords, which means the renters, for any reason, will have a more challenging time finding a place to rent. The shortage of housing supply has made the situation even worst, causing the rental prices to reach the sky. The tenants are forced to pay higher rents. The real estate news can help people in this situation.

Landlords and their methods to vacate the tenant

Eviction has fallen largely during the pandemic because of the federal displacement and local and state moratorium. 38% of landlords missed rental incomes by the eviction proceedings despite the federal moratorium. According to many surveys,59% of landlords encouraged the tenant to vacate the property, 22% terminated their lease, and 27% of the landlords did not renew the tenant’s lease.

Stringent on tenant screening

Stringent screening criteria are now being used by more than 39 % of landlords, and many who have missed rental payments are becoming cautious. 49% of landlords have tightened the screening criteria, whereas 32% did not miss the rental income. While screening rental applicants, many landlords use income and job history, credit history and credit score, criminal background, and rental history and evictions to provide the house. Over 90% of the landlords check the income, previous evictions, and job history before giving the place. 

No rental payments= higher the rental charges

In the line of soaring rent prices worldwide, many landlords said that they would raise the rent cost by a higher percentage within the next 12 months. Many landlords raise the bar and increase payments to recover the financial losses. On average, 8% of the rent was increased when compared to those who have not missed any rental income. One of the most significant determinants of rent increases was landlord satisfaction; the tenant’s payment history was the primary factor in landlords’ satisfaction. The rental market will likely linger because of the covid-19 crisis.

 

ERA

Although the reason increase in the speed of Emergency Rental Assistance (ERA), more than 30% of the landlords who have applied for it are still waiting to receive assistance. The funds are the main problem in the places like DC and New York, where they have exhausted all the funding, suggesting that funds could be reallocated flexibly and finally meet the demand. The future of ERA depends on these factors, as the landlords should also be satisfied with it. The more delay the ERA causes,  the most stringent the landlords become. As fewer evictions occur in 2021, they will likely rise again in a few months because of the strict screening. 

Conclusion

Money has become a significant problem because of the pandemic, and there is nothing we can do about it. It might be the only income for a few landlords, so they become stringent. Hoping that the ERA will soon be helping out all the landlords who have applied for it and can make the housing problems to resolve quickly.