When the federal Covid related eviction moratorium ended on August 26, 2021 due to a Supreme Court ruling, confusion continued as lawmakers started to review a potential reimplementation of eviction moratoriums, while some authorities suggest eviction moratoriums could be detrimental to renters. Even as the federal eviction moratorium ended several states continued similar moratoriums and combined with a potential renewal of Covid related eviction moratoriums, a best practice remains for property managers and/or landlords work with a well-qualified third-party tenant screening agency to continue to be compliant with existing laws governing tenant screening.
Even as a Supreme Court ruling quashed the legality of a federal Covid related eviction moratorium, some states continue to impose eviction restrictions, and, further, some lawmakers are looking to reenact some form of renter protections against eviction, despite arguments suggesting eviction moratoriums could be disadvantageous to renters. The process of tenant screening will remain challenging for landlords and/or property managers as the country continues to work Covid and, subsequently, a best practice is to work with a well-qualified third-party tenant screening agency to remain ahead of any changing laws which govern tenant screening.
In a recent opinion post on thehill.com on September 30, 2021, Senior Policy Research Editor, Tracy C. Miller, comments on the challenges that an eviction moratorium may have on renters.
Although the Supreme Court recently annulled the Centers for Disease Control and Prevention’s (CDC) eviction moratorium, some states still have eviction moratoria in effect. In the short run, these policies appear to benefit tenants at the expense of their landlords. In the long run, however, moratoria make it harder for people with low credit scores or unstable employment records to find any place to rent. Ironically, prohibiting evictions now may result in even more people being homeless later. thehill.com/opinion/finance/574623-how-eviction-moratoria-could-increase-homelessness-in-the-long-run
Miller continues to argue against moratorium by suggesting (thehill.com; Sep. 30, 21):
It’s likely that some landlords will never be compensated for the rent they lost due to the eviction moratorium. It gave some tenants an excuse to pay less rent than they could actually afford. Government bureaucrats cannot possibly know what options are available to some tenants for paying rent when their income declines. The possibility of eviction would increase a tenant’s incentive to find a way to pay. Some could negotiate a reduction or a delay with their landlords. ibid
The net affects the eviction moratorium on renters as well as landlords and property managers may not be felt in the near future but the possibility of changes to law remain.
A challenge such as an eviction moratorium is bound to create legislation that will most certainly affect landlords.
As the delta variant continues to impact the country some lawmakers are looking to reimplement an eviction moratorium.
From the Associated Press on September 21, 2021:
Several progressive lawmakers on Tuesday introduced a bill that would reimpose a nationwide eviction moratorium at a time when deaths from COVID-19 are running at their highest levels since early March.
Sen. Elizabeth Warren, D-Mass., and Rep. Cori Bush, D-Mo., said the bill would direct the secretary of Health and Human Services to implement a ban on evictions in response to the COVID pandemic. It would also amend a section of the Public Health Service Act to grant permanent authority to Health and Human Services to implement an eviction moratorium to address public health crises. apnews.com/article/health-courts-united-states-public-health-coronavirus-pandemic-34a52c4ebc7c5f16b290ba73df541fda
With the ongoing challenge related to Covid 19 and potential evictions working with a well-qualitied third-party tenant screening agency should remain a priority for any property manager or landlord.