Capitol Hill Blue
Posted By: jgw A possible solution to rental problems. - 07/25/20 05:17 PM

What if a law was passed to stop all evictions until this Covid-19 thing is over. Then, what if gov sits down with those to are renting and explain that just evicting tenants solves nothing as there will be nobody who can come in and rent the property. This entire thing is a problem for everybody - nobody is exempt. So, government will give the renters what it costs them, during this period, to maintain said rental properties until this thing is over. Should any renters actually get a job they must start paying their rent, at the previous rental price. Should any renter not start pay their rent they will be responsible, to the renter for all monies not paid from the time they should have started paying and can be evicted. This all seems fair - nobody gets rich but buildings continue to be maintained and the renters are paid to do that. This is not a scheme to give those who are renting a profit, this is about dealing with a problem.

Now, there are also those who have problems paying their mortgages. This will be more complex to fix. This will be similiar to the rental but not the same. First, those who own the mortgages cannot evict and take the property. The government, on the other hand, will pay those that own the mortgage enough money so that their business does not suffer. This does not mean they get rich or that they make a profit. What does happen is that the mortgage owner is paid a fair amount to keep them in business. I have no idea how gov will be able to determine that amount but, I am sure, there are those who understand the business mortgages and they can sit down and figure out a formula. Should any bank, or mortgage owner, try to profit from this they will be responsible for paying back any and all profit they have received. All paperwork on the mortgage, and the books of the mortgage owner will be open to investigation at any time.

These plans, I think, will be fair and takes care of both parties. If something like this is not done, and congress keeps on just giving money away, this country is going to banco eventually. The above solution is, as far as I can tell, the best solutions to a really bad problem. If its not taken care of homeless population overwhelms, people lose houses they have paid on for years whilst there are no renters so those that rent go broke and banks and others that own mortgages get a lot of property that has no buyers so they just take on more debt themselves.

Again, this profits nobody but fixes a problem that can tear the nation apart. This solution also doesn't hurt anybody. Payments should also take into consideration that those parties that make their livings by renting or loaning on mortgages also have to eat and have costs in that regard.
Back when I had mortgages on my rental properties, I also had regular income and savings that could cover any vacancies and upgrades needed. It's very poor business planning to be mortgaged to the hilt and depend on getting the full rent every month to survive. That's like leasing a fancy car when you have no savings.
Posted By: jgw Re: A possible solution to rental problems. - 07/25/20 08:12 PM
All true. However, given the greed being displayed, regularly, I wouldn't count on a whole lot of common sense. This would be particular concern about those just starting the renting stuff with some banks ready to loan on just about anything.

We gotta remember that Trump has rolled back much of what Obama wrought. I heard, just the other night that he has also started work on the banking restrictions as well.

Anyway, I think my plan is sensible, if done properly. If they don't do something like this, and decide to just throw money at it then its gonna fail. They will have a time limit and then the money will stop and the pain will begin. My plan covers that one and, I think, it would cost a LOT less.

We are, right now, at WWII levels and well over 2 trillion is being proposed to be added right now. This is, I think, because the first round was a waste of money due to the incapacity of Trump to actually function. <sigh.
Posted By: Greger Re: A possible solution to rental problems. - 07/26/20 03:37 AM
Seems simple enough. Brilliant perhaps, in its elegance. Plain common sense. Logical. Sensible....

You see already why it can't work right?

Republicans just took away the extra $600 of unemployment because it dis-incentivizes workers and might make them unwilling to go back to jobs that no longer exist.

You think free rent is gonna fly with this crowd?
Posted By: pdx rick Re: A possible solution to rental problems. - 07/26/20 04:06 PM
Originally Posted By: jgw
What if a law was passed to stop all evictions until this Covid-19 thing is over.

I'd stop paying rent and put it into the my house-buying account that I have. smile I thought about stop paying rent in April 2020 like a lot of people actually did do, but the July 25, 2020 end of that option served as my reality check.

There is a community being built where I live. I have lot 27. It would be like playing "Beat the Clock" if your idea came to fruition jgw. Could I stop paying rent ($1,089/mo) and add those monies to my house buying account and move-out before any negative effects could happen to me? It's a gamble I would consider. smile

Not that my landlord cared when the elevator was out for seven weeks both times in 2019 and I had to carry 67lb Sammy Dawg up seven flights of stairs several times a day because his hinds legs were not working well just before he died in May 2019.

I will never forgive the landlord for taking his sweet time from February 2019 to April 2019 (seven weeks) to get the elevator fixed. Then the elevator went out again in September 2019 to November 2019 (another seven weeks). The landlord blames the building for being built in 1929. I blame the landlord because he refuses to sink monies into this building to get things fixed quickly.
Posted By: jgw Re: A possible solution to rental problems. - 07/26/20 04:52 PM
You think free rent is gonna fly with this crowd? "
Sure, there are two parts, one for each side, free rent for the renters, and payment to the landlords. The trick will be the landlords thing as the Republicans will want too much.

It should work. Its got stuff for both sides. The alternative is to spend massive amounts of money. The simple fact is that if the landlords evict everybody they end up just as broke as the renters (at least those who didn't set some aside) Still, they will lose too.

The simple fact is that Covid-19 is not good for anybody or anything. I know, there are some raping the system but, I think, those are fewer than one might think. Its the same for banks. If nobody has a job then there are also no buyers so they will get stuck with a pile of houses. I remember when this happened under Obama. There were bargains galore with nary a buyer in site. They came back when the economy got better. The same thing is going to happen again. I would prefer, however, that everybody not on not get evicted but also not lose their houses. This takes care of that.

The problem, of course, is that one side or the other will not deal. If that happens then everybody loses. Unfortunately I don't doubt, for a minute, this can't happen.
Posted By: jgw Re: A possible solution to rental problems. - 07/26/20 06:02 PM
If you had the money then its yours to do with what you want. Your question, however, means that qualification will have to happen, ie. request and form filling (proof of need)

If, however, they don't do something like that there are going to be bargains abound time as far as houses are concerned as mortgages get cancelled.

As far as upkeep is concerned. If gov is paying for it gov has to make sure its getting done.
Posted By: Greger Re: A possible solution to rental problems. - 07/27/20 02:37 AM
It's too sensible. Government doesn't work like that.
Posted By: jgw Re: A possible solution to rental problems. - 07/27/20 06:57 PM
Well, there is that! <G>
There is also the big problem of finding new tenants if you do evict people. My property manager's process involves credit checks and tenant blacklists. Could a lot of presumably-just-evicted people pass such a test? Let me assure you: Bad tenants are a lot worse than no tenants. Might be a much better idea to make a deal with your existing tenants for whatever they can pay now, and have the rent return to normal when they get employed.
Posted By: Irked Re: A possible solution to rental problems. - 08/01/20 12:21 AM
I believe Iíve heard that some jurisdictions are assisting landlords to do just that. It would be most helpful to have a federal standard so that all Americans are treated as equally as possible.
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