- Small mom and pop landlords own between 1-10 properties and house approximately 48M renters
- 8M mom and pop landlords own close to 50% of nation’s rental properties
- Mom and pop landlords haven’t necessary cash nor credit availability to cover costs when rents not paid
Just as millions of laid-off workers can’t afford to pay their monthly rent, small mom and pop landlords can’t afford to pay their costs when their tenants don’t pay their monthly rent bills.
Download Your FREE Ultimate Agent Survival Guide Now. This is the exact ‘do this now’ info you need. Learn NOW How to Access All The Bailout Program Cash You Deserve. Including Unemployment and Mortgage Forbearance Plans. To Access the Ultimate Agent Survival Guide Now Text The Word SURVIVAL to 31996.
There are approximately 8M small mom and pop landlords in the US and those landlords own between 1-10 properties. Those landlords own and manage about half the rental properties in the country that houses approximately 48M renters.
In a recent survey conducted by Avail, a software company that sells mom and pop landlords online rental platforms, Avail found that 54% of the 7,000 tenants who participated in this survey had already lost their jobs due to the COVID-19 pandemic and that about a third of that 54% said the simply would stop paying their rent bill if they couldn’t afford to. The other two thirds of Avail’s survey respondents said they’d either look to their family/friends for help and the rest said they simply didn’t know what they would do.
So how do mom and pop landlords who don’t have wide margins or ample credit availability as do large rental corporations and/or REITS cover their costs when/if their tenants stop paying their rent? Some, not all, of these 48M small landlords could apply for the government’s forbearance program to help cover their mortgages but there isn’t any forbearance on utility or water bills.
Taylor Denchfield is one such small landlord with nearly a dozen single-family rentals. Denchfield said, “To date, the only help available to landlords is the ability to take losses greater than $500,000 in this tax year, and if you have a Fannie or Freddie backed loan, you can receive a one-year payment holiday. However, there remains no assistance for property owners like myself who either own properties debt free, or have balance sheet bank loans.”
Simply, Denchfield added, there is “…little to no relief for property owners,” via the federal stimulus package.
Thanks to CNBC’s Diana Olick.