Update: Landlord Eviction Rights Coming Into 2021





Typically in the pre-pandemic days, when a tenant failed to pay rent, a landlord could give the tenant a notice of eviction. However, for much of 2020, residential landlords in Los Angeles have had little to no leverage collecting rent payments as tenants hid beneath the rent relief programs and unemployment benefits provided by California state law. Causing a domino effect, many landlords began to defer their mortgage payments as part of that program to help buffer the harsh reality of COVID-19.


Read Previous Blog Article: Rent Relief Expiring Soon


Read Previous Blog Article: Evictions Can You or Can't You?


Although the state’s umbrella of protection appears to be coming to an end, it appears the damage has been done. Tenants will owe an estimated $1.7 billion in rent by the end of the 2020, despite the efforts of local governments passing stronger rules to give tenants more time to pay owed rent. Estimating now that landlords may not receive those past due rent payments until we are well into 2021. Here listed are just a few updates on what is happening now and what you need to be prepared for.


Millions of California renters are at risk of eviction as tenant protections soon expire.

With rent payment forgiveness coming to an end come February 2021, many fear a huge surge in homelessness on the rise. With a new “stay at home order” in place many lawmakers are pushing for an extension as millions of California renters struggle to keep their balance.


California State Assembly Member David Chiu has proposed a bill to extend the current state protections through December 2021

Assembly member David Chiu proposed a bill that would extend California’s eviction moratorium until the end of 2021 for renters struggling with job losses or sickness. Tenants would still be required to pay the 25% of their rent to be protected under this bill.


City of LA “apartment owners” lose in Federal Court to stop Mayor Eric Garcetti’s eviction moratorium

Senior United States District Judge Dean D. Pregerson ruled that there appeared to be no immediate threats of foreclosure to landlords who had not received payments from their tenants. It was also stated that the City Moratorium appeared to be “imminently reasonable. Also noting that landlords are not deprived of their right to sue for unpaid rent and to seek money damages. A small loophole for landlords stuck in a bind.


An increase in coronavirus cases prompted Newsom to declare new restrictions on travel and businesses

This will cause more problems to renters just getting back into work only to find restrictions placed back on them and a loss in money gains. With many businesses cutting hours or even cutting jobs completely, Residents struggle to stay afloat. We may start to see a domino effect, as landlords began the eviction process. We are again staring down an eviction cliff that could leave millions homeless in the middle of a deadly pandemic.


State officials project that the California treasury could possibly see a $26 BILLION tax windfall

They are preparing for record numbers this year but a plunge is to be expected as a projected deficit of $17.5 billion by the middle of 2025 is awaiting us.




Resources:

https://www.jdsupra.com/legalnews/federal-judge-blocks-eviction-79929/


https://www.lamayor.org/mayor-garcetti-orders-new-restrictions-evictions-announces-indefinite-moratorium-water-and-power


https://www.theguardian.com/us-news/2020/mar/31/california-rent-strike-coronavirus-eviction



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