The stimulus package aids renters in unprecedented ways such as moratoriums on evictions even if rent is not paid. But there is a void about what this means for rental home owners. These owners depend on timely rent payments in order to cover expenses such as property taxes, mortgages, insurance, HOA fees, repair and maintenance costs, etc.
Contrary to popular belief, 95% of the nation’s rental home stock is owned by individuals, not large institutions. In California, one in eight residents (nearly 1.7 million people) own rental properties and 30% of single-family rentals have been owned by the same person for at least 25 years.
What happens if a rental home owner does not receive rent and also has no cushion to fall back on? Many of these individual rental owners are essentially small business owners and this rent provides the income to meet the rental home’s costs and expenses, such as taxes and insurance.
Contributed by Carolyn Horvath https://oakcreekcapitalpartners.com/