Landlords look for an exit amid federal eviction moratorium
NEW YORK (AP) — When Ryan David bought three rental properties back in 2017, he expected the $1,000-a-month he was pocketing after expenses would be regular sources of income well into his retirement years.
He also was counting on the rent money from the properties in Dupont, Pennsylvania, to help with the cash flow of his business buying and selling distressed properties, launched early last year.
But then the pandemic hit and federal and state authorities imposed moratoriums on evictions. The unpaid rent began to mount. Then, just when he thought the worst was over, the Centers for Disease Control and Prevention announced a new moratorium, lasting until Oct. 3. A federal judge dismissed a legal challenge to the order last week.
David, the father of a 2 1/2-year-old who is expecting another child, fears the $2,000 he's owed in back rent will quickly climb to thousands more.
The latest moratorium “was the final gut punch," said the 39-year-old, adding that he now plans to sell the apartments. “I have had this internal struggle going back and forth. I have lost sleep at night, and I have now come up with a decision to sell and walk away.”
Most evictions for unpaid rent have been halted since the early days of the pandemic and there are now more than 15 million people living in households that owe as much as $20 billion in back rent, according to the Aspen Institute.
A majority of single-family rental home owners have been impacted, according to a survey from the National Rental Home Council, and 50% say they have tenants who have missed rent during the pandemic.
Smaller landlords with fewer than four units, who often don't have the financing of larger property owners, were hit especially hard, with as many as 58% having tenants behind on rent, according to the...
