Communication keeps evictions at bay
Communication keeps evictions at bay
The gap between the economic kidney punch the coronavirus has unleashed on America and the $2.2 trillion stimulus package that can’t come fast enough is now touching virtually everyone in North Idaho, none so quantifiably obvious as lower-income renters.
“It’s scary,” Donna Appel said outside the Hayden Super 1 Thursday. “We had to think about how we were going to get what we need and pay rent at the same time. I didn’t think we’d make it. We still might not, you know?”
Appel said she paid her April rent — $1,050 per month for her two-bedroom house on Miles Avenue — but that she and her husband didn’t know about May. Both work, she said, but the couple spent $400 over the past three weeks on supplies, an unexpected expense she admits was fueled by fear over the future.
The Hayden tenant wasn’t alone. Stocking up on distilled water, canned goods and — yes — toilet paper was one of the few economic generators in a national downturn that’s crippling the American household. A new report from the National Multifamily Housing Council claims that of the 13 million households in its nationwide study, 31 percent did not pay rent between April 1 and April 5. That’s a jump from 19 percent during March’s opening five-day period.
Armies of unemployed
The report comes as initial unemployment claims in Idaho have exploded from mid-March into untenable numbers that have overwhelmed the state’s Department of Labor. The department reported 63,845 new unemployment claims in the past two weeks as businesses have either cut back or stopped their day-to-day operations.
That combination is leaving tenants and landlords alike fearful the economic calamity the pandemic has caused will outlive the virus. The package that includes an added unemployment benefit, a $1,200-per-individual credit and an array of low-interest loans also includes what essentially establishes a moratorium on evictions ... sort of.
The moratorium applies to homes covered under particular federal housing programs or have federally backed mortgage loans. Homes that qualify their owners for Federal Housing Administration assistance, loans and tax breaks are safe havens, as are homes operated under or assisted by the Department of Housing and Urban Development.
Facing foreclosure
Like renters, homeowners facing mortgage foreclosures have bills to pay, as well. But the vast majority of mortgages are federally protected and fall under a similar protections, provided owners subletting their homes do not evict anyone.
While many rentals fall under this umbrella, not all do. Fully-owned homes rented out by owners with no debt attached to their deeds have no federally mandated obligation to put off evictions, though many are during the pandemic.
“I think people are going to have a really hard time paying rent [in the months to come],” said Jodie Smith, account manager at Coeur d’Alene’s Compass Property Management. “We’re working with our tenants to help where we can. We’re waiving our late fees to help out.”
Smith said communication is the key to letting a bad situation in a dark time get out of hand.
“I think, as long as [tenants] communicate, everyone is sympathetic,” she said. “Everyone understands that this is something we’re all going to have to work through together.”
Bonnie Allan of Compass agreed.
“I was surprised just how many of our tenants paid rent,” she said. “It really wasn’t as bad as I thought it would be.”
Allan said that while she understands the plight tenants might be enduring, owners are facing an equal blight.
“Certainly, if an owner is not allowed to collect rent, certainly there must be some federal help for the owner,” she said. “Owners have to pay taxes, homeowners association fees, things like that. I’m not saying there shouldn’t be relief for tenants; I’m just saying that the challenges owners face should be taken into account, as well.”
Being proactive
Billie Curl of Happy Home Rental Services in Post Falls said the owners they’ve worked with have been more than happy to help tenants. Happy Home, which has also waived its late fees, has been proactive with owners and renters alike.
“We’re talking to the owners every day to keep everyone on the same page,” Curl said. “Most of them have been wonderful about it. Our owner here, Deanna [Caviezel], has been very, very sympathetic during all this.”
Curl said she’s starting to see the struggle renters are facing.
“This month wasn’t as bad as I kinda thought it was going to be,” she said. “We usually have a really good flow: I’d say 99.9 percent of our tenants pay their rent on time and in full.”
In April, she estimated about 10 tenants weren’t able to pay.
“It’s very upsetting for them,” Curl said, “because these are all really good renters, and it’s a disaster to them to call and say they can’t pay. We’re just working through it with them to try and help them through it. Some have called for help. Some have started [filing for] unemployment. We’re just working together to get through it.”
Curl added that her optimism is likely short-lived.
“The struggle is going to be next month,” she predicted. “The struggle is going to be when they’ve gone a whole month without working or without income. If the stimulus comes in, that’s great, but not everybody is going to get it at the same time. It’s going to be hard for a lot of people to make rent.”
