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The other side of the eviction moratorium

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* The Daily Southtown’s Ted Slowik

A Will County landlord wants Gov. J.B. Pritzker to modify his blanket moratorium on evictions to address tenants who were set to be evicted for nonpayment of rent before the pandemic began.

Craig Horvath, 48, of Chicago, said he is dealing with a tenant in unincorporated Lockport who has not paid rent for more than a year.

“This is incredibly unfair to me as a landlord, as my problem existed prior to anything related to the COVID-19 pandemic,” Horvath said.

Horvath owns multiple properties in Cook and Will counties, he said. He said he has worked with some tenants who fell behind in rent payments because their incomes were affected by the pandemic.

The existing eviction moratorium is in effect until October 17.

Thoughts?

* Related…

* Cook County launches $20 million mortgage assistance program: ‘We will feel the effects of COVID-19 for years to come’

posted by Rich Miller
Friday, Oct 9, 20 @ 3:30 am

Comments

  1. I’m torn. I understand the argument of the landlord and it is valid. The stay on evictions has to do with lack of income and all the things that go with that (lack of food, medical care…) For those that were delinquent on rent before the pandemic, that situation has not changed.
    The landlord has a reasonable position, however. It’s just untenable right now, in my opinion.

    Comment by Bothanspy Friday, Oct 9, 20 @ 6:32 am

  2. Yes, I have thoughts. I have squatters I cannot evict. I’m paying the taxes and maintaining the property. My hope is to get them out and redevelop the property. I could sure use some support.

    Comment by Stix Hix Friday, Oct 9, 20 @ 6:32 am

  3. I think we ought to defer or forgive property taxes for landlords that can’t evict non-paying tenants.

    Comment by Dan Johnson Friday, Oct 9, 20 @ 7:33 am

  4. It is one thing to honestly need the help if you aren’t working. It is quite another issue to be using the moratorium to take advantage of a landlord.
    The landlord needs help from the state, as well.

    Comment by Bruce( no not him) Friday, Oct 9, 20 @ 7:40 am

  5. I am a landlord. The laws to protect tenants during the pandemic was the right thing to do. However, the government didn’t “socialize” the landlord’s losses. The landlords take the loss with no relief. Stability of the housing stock is for society’s good. Can we get some relief from real estate taxes?

    Comment by Southwest Sider Friday, Oct 9, 20 @ 7:44 am

  6. The break down of negotiations for another economic relief package is bad news for landlords and tenants. The rental support that is on the table needs to get passed and get out to communities. It won’t fix everything, but it will make a big difference.

    Comment by Montrose Friday, Oct 9, 20 @ 7:59 am

  7. I am a landlord, but I own one condo unit I rent out. We’re my tenants unable to pay, I would be in dire financial straights. Not all landlords are big corporations, so there should be some consideration on that side of things.

    However, a stay on evictions is absolutely the right thing to do. Sometimes, when big broad actions need to be taken in an emergency, there are unintended consequences. This appears to be just that.

    Comment by Guy Probably Friday, Oct 9, 20 @ 8:28 am

  8. The eviction moratorium needs to end now. Seems like JB is doing his best to reel in a federal bailout when this issue can be resolved by returning to some semblance of normal.

    Comment by Daily Grind Friday, Oct 9, 20 @ 8:30 am

  9. I have two rental properties with mortgages. I made sure I could handle the payments and expenses without tenants if necessary.

    Wouldn’t be fun, but also wouldn’t be ruin.

    I have sympathy for some of these folks, but just like the bars and restaurant owners this is a risky business. I’m sure you appreciate having the government remove these people for you in normal times, spare me the outrage during the once in a lifetime scenario where they’re keeping them in place.

    Comment by Excitable Boy Friday, Oct 9, 20 @ 8:43 am

  10. The moratorium is about public health, not individual problem tenants. We can’t tell people to “stay home, save lives” and then put them out on the street. The state should help these people but not by permitting evictions to resume.

    Comment by Darth Stou Friday, Oct 9, 20 @ 8:59 am

  11. === but just like the bars and restaurant owners this is a risky business.===

    A bar or restaurant can reduce operations or even close. The landlords are being required to provide a service but unable to demand payment. This has to stop or when this is over housing all over the state will crumble.

    Comment by Just Me 2 Friday, Oct 9, 20 @ 9:00 am

  12. Southwest Sider at 7:44 AM for the win - perfectly stated.

    Comment by allknowingmasterofraccoodom Friday, Oct 9, 20 @ 9:01 am

  13. =Can we get some relief from real estate taxes?=

    No. That is local money not state.

    Any rent relief from federal or state should be paid directly to property owners with delinquent renters.

    Comment by JS Mill Friday, Oct 9, 20 @ 9:07 am

  14. I have always thought that should not apply to anyone who owns less then 5 properties. Or it should apply and they should get partial payment from the feds/state someone. Especially for people who live in their rental properties (e.g. someone who owns a 3 flat and rents 2 floors out). Those folk need the income from their property just to survive. Of course if you tried that you would just get sued by the big landlords so everyone gets to suffer.

    And there should still be evictions for egregious cases like people who are actually working and not paying and people who are damaging their landlord’s property or terrorizing their neighbors.

    Comment by cermak_rd Friday, Oct 9, 20 @ 9:11 am

  15. Those poor landlords

    Comment by Anon E Moose Friday, Oct 9, 20 @ 9:26 am

  16. ===Those poor landlords===

    I read sarcasm in this post. Uneducated sarcasm at that. When the mom and pop landlord loses the property down the line to the bank then your tenant gets to deal with someone, read big bank, that isn’t going to give them a break on timely rent. This is a horrible situation for all involved.

    Comment by Nagidam Friday, Oct 9, 20 @ 9:32 am

  17. Pay your rent people. Landlords have bills and obligations too. Untenable is the thought that someone can live with themselves after fleecing another person.

    Comment by Rent is due Friday, Oct 9, 20 @ 9:39 am

  18. I’m a landlord. The eviction ban was the right thing to do, but it could use a little refinement if they extend it again, which they should. I empathize with the guy who sued and with landlords who are having tenant issues other than non-payment. I had squatters dealing drugs out of my property a couple months ago. The neighbors and I were talking constantly about what was going on over there and how to get them out. The police couldn’t do anything. I ended up talking to them and bought them out with cash for keys, and they left the place in pretty good shape. I was lucky.

    Comment by Horseshoe Voter Friday, Oct 9, 20 @ 9:45 am

  19. Typical cookie cutter policy by JB that does not even require the tenant to prove financial hardship and ignores the contractual rights of landlords that can prove it.

    Comment by Lucky Pierre Friday, Oct 9, 20 @ 9:46 am

  20. I actually saw my landlord this week for the first time since COVID. He and his father founded a property management group and own/have mortgages most of the buildings they rent. I asked if he has any tenants behind on payments - he said he is one of the fortunate ones that hasn’t had any missed/late payments. He is a small business owner, so I was concerned since he has to make mortgage payments, property taxes, et. all. Most positive news I’ve heard this week, besides a random fly of course.

    Comment by MakePoliticsCoolAgain Friday, Oct 9, 20 @ 10:04 am

  21. And the other other side is the banks that can’t collect mortgage payments from the landlords whose tenants can’t pay rent. This snowballs quickly and demands a bigger response than just a moratorium or deferral on any one part of the process.

    Comment by Socially DIstant Watcher Friday, Oct 9, 20 @ 10:04 am

  22. How does the moratorium not violate the Contract Clause contained in both the Illinois and U.S. Constitution?

    Comment by phocion Friday, Oct 9, 20 @ 10:06 am

  23. This landlord says again and again in the story that people won’t apply for relief programs because they know they can’t be evicted. What is actual evidence for this statement?

    Comment by Precinct Captain Friday, Oct 9, 20 @ 10:08 am

  24. I agree with Dan Johnson. Deferring/forgiving taxes is a good solution. Of course, that would be easier if Washington ever decides to help states and cities pay for the costs of COVID.

    Comment by 47th Ward Friday, Oct 9, 20 @ 10:10 am

  25. I’m sure its impossible but some of the extra unemployment funds should have been directed to landlords. Now that those funds are gone not sure what really could be done. But it wasn’t just as easy as banning evictions.

    Comment by Cool Papa Bell Friday, Oct 9, 20 @ 10:12 am

  26. The moratorium needs to be revised to allow more instances of eviction in cases where the landlord can prove a tenant is able to pay (e.g., in a previous post, where a tenant has a job but is just choosing to pay) or in such a case as the post today. The current moratorium’s exceptions are just too limited. Plus, landlords should be eligible (if they are not already) for pass down stimulus $ from the feds (if more ever comes).

    Comment by Simply Sayin' Friday, Oct 9, 20 @ 10:18 am

  27. ==Of course, that would be easier if Washington ever decides to help states and cities pay for the costs of COVID.==
    This seems to also be the State’s hope when it passed its out of whack budget. So, if Biden doesn’t win and/or the Democrats don’t take the Senate, what’s plan B?

    Comment by phocion Friday, Oct 9, 20 @ 10:18 am

  28. I’m troubled by the eviction moratorium. It seems to me that a contract is being impaired. Landlords are being harmed for the general good. Seems like an opening to reduce my pension..for the good of the many. We will soon have 6 SCOTUS Judges looking for that angle.

    Comment by Anotheretiree Friday, Oct 9, 20 @ 10:20 am

  29. The moratorium is necessary. We’re in the worst economic crisis since the great depression, and the alternative would be mass homelessness. Carve outs and exceptions might be an option, but if a tenant can’t afford rent they certainly can’t afford a lawyer to litigate whether they should or should not be evicted. Unfortunately, no policy is without unintended consequences, and I can understand the strain this places on small landlords. But, given the depth of the crisis, it strikes me as unlikely that they’ll be able to find new tenants who can pay once they evict their current tenants.

    Anyway, all of this just shows why robust public housing is necessary.

    Comment by Actual Red Friday, Oct 9, 20 @ 10:39 am

  30. How about non-paying tenants who continue to work who openly taunt their landlord’s that the
    “landlord’s cant do anything about it”…when landlord’s default on their mortgages and take down the banking system with them, good luck finding a job to the rest of you.

    Comment by Contrarian Friday, Oct 9, 20 @ 10:40 am

  31. But Actual Red is right about this, “But, given the depth of the crisis, it strikes me as unlikely that they’ll be able to find new tenants who can pay once they evict their current tenants.”

    Comment by Contrarian Friday, Oct 9, 20 @ 10:42 am

  32. I’ve seen several suggest property tax relief for landlords who aren’t being paid their monthly rents. Great idea. If that happened, we’d find out how committed the Governor is to this program.

    Comment by ddp76 Friday, Oct 9, 20 @ 10:54 am

  33. ===How does the moratorium not violate the Contract Clause===

    How about using the Google to see what the judiciary has already said about this rather than spewing in a comment section?

    Comment by Rich Miller Friday, Oct 9, 20 @ 11:05 am

  34. Profiting from Capitalism is inherently risky business.

    Comment by Dotnonymous Friday, Oct 9, 20 @ 11:33 am

  35. === But, given the depth of the crisis, it strikes me as unlikely that they’ll be able to find new tenants who can pay once they evict their current tenants. ===

    Respectfully, you are very wrong. The real estate market for both sales and rentals is very strong. There are plenty of renters that are paying and are able to pay their rent.

    Comment by Just Observing Friday, Oct 9, 20 @ 11:51 am

  36. In view of massive unemployment and underemployment and severe disruption of real estate market segments that have been going on for years due to technology changes and are accelerated under COVID, do these real estate moguls really think there’s a whole replacement crowd of affluent tenants with 750 FICO scores lined up around the block for a vacancy?

    Comment by VerySmallRocks Friday, Oct 9, 20 @ 12:55 pm

  37. Don’t know how to describe it but legal contract law needs to reflect moral contract law. If flooding means I can’t farm bottom land and that flooding will likely happen at least once every ten years my contract with the bank for that bottom piece should allow them to extend the contract a year so that it can be paid. Extending that to renters who can’t work for a year (or more) where the building owners and the lending bank(s) are separate entities is more complicated but it should be doable. The long term interest of the owner and maybe the bank is to protect the asset so those renters should expect that some of their relief money has to go to the roof over their heads. How I don’t know. The feds gave me a thousand back this year. That unexpected and unneeded money got moved to my county government to help improve the local medical system. Just sayn..

    Comment by Matthew Vernau Friday, Oct 9, 20 @ 12:58 pm

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