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Landlords in U.S. are getting squeezed between tenants and lenders

6 Comments
By ANNE D'INNOCENZIO

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6 Comments
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The flow of the money to the top can't stop! Won't someone think of the lenders??

/heavy S

4 ( +5 / -1 )

My feelings on this are definitely mixed.

Frankly, it seems like it's a COVID-style subprime-like real estate implosion all over again.

After 2008, lots of people got into the idea of 'income producing properties.' Whether through apartments, AirBnB, etc, they snatched up properties, often leveraging them through lenders.

Lenders, of course, were more than willing to open up the taps again, especially on properties that were income producing (had tenants).

This caused the price of real estate to go up. Landlords and lenders, of course, had no problem with that, as rents were covering what was due, etc.

Now, supply and demand have stopped. Or more specifically, while demand has stayed steady, the supply of money that people have for rent has plummeted. Leaving landlords and lenders going 'but pay us,' and the tenants going 'with what?'

For a so-called 'small landlord,' say someone who's got 1-2 properties as their retirement portfolio, etc, I feel for them. At the same time, within the story are stories like the Simon group, or the guy who has 350 units, etc. I don't have as much sympathy for them.

And I've got zero sympathy for the lenders, who once again let themselves go out onto a shaky limb, only to see the slightest of breezes send them tumbling.

4 ( +4 / -0 )

If you want to find sympathy for me with real estate owners, banks and mortgage companies you will have your work cut out for you.

Calling them sharks is an insult too those imperious animals.

1 ( +2 / -1 )

This is a real dilemma. I read in another article that some families that are getting the monthly unemployment and government stimulus don't even pay that for rent because they know they can't be evicted and are spending it on other things. So the landlords do have a tough situation.

1 ( +1 / -0 )

Reckless, I can understand that, although I would say that of course as with all articles like this, things are cherrypicked to favor the slant of the editorial board. The JT article we're posting about is no exception.

For example, your cases of tenants not paying because they know they won't be evicted. While perhaps true, why should I feel for the landlords/lenders when we know that they're able to dip into the stimulus funds? When many of the lenders are considered 'too big to fail' and would not only have their losses socialized and borne by the taxpayers in a bailout, but most likely then still be allowed to evict or go after the tenant for the missed rent as well?

0 ( +0 / -0 )

For example, your cases of tenants not paying because they know they won't be evicted. While perhaps true, why should I feel for the landlords/lenders when we know that they're able to dip into the stimulus funds?

If you are a small time landlord with three properties like I have the only stimulus you qualify for is the $500 and something individual check that came out last summer. I don't have employees so my business doesn't qualify for anything else. If your tenants aren't paying the rent you can't pay the mortgage, taxes and other routine expenses on those properties.

0 ( +0 / -0 )

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