Landlord Relief: Opting Out Because the Price is Too High

We have posted frequently on the unstable rental housing market, specifically about how the eviction moratorium--originally in effect for three months but extended to more than a year--has imperilled the finances of some small landlords.

Burned by the government's bigfooting of lease contracts, some landlords are refusing to take relief money because of conditions that may well guarantee future losses.

...thousands of building owners across the country are rejecting the government offer. They say the aid often has too many strings attached, such as preventing them from removing problematic tenants or compelling them to turn over sensitive financial information to government agencies or contractors.

“If you have someone who wasn’t upholding their end of the contract…you’re asking the housing provider to sign up for essentially another year of this person being in this unit unable to pay,” said Amanda Gill, government affairs director for the Florida Apartment Association, a landlord trade group.

To be sure, many landlords are accepting the money and terms. They will get partial payment of the liability (they are required to waive 20% of the unpaid rent) and will continue to lease to problematic tenants. However, some landlords may wish not to take the deal in favor of cutting their losses in hopes of finding more creditworthy renters.

Over the past year the government has not shown itself to be the most trustworthy counterparty, so it's understandable that some landlords think the price of receiving COVID relief is too high.