The ban on evictions which was enacted to prevent evictions during the Coronavirus Pandemic is set to expire on December 31st of 2020. The order applied to those who qualified for the CARES act, who had fallen behind on rent payments, to prevent them from being forced into crowded living conditions or homeless shelters which would potentially negatively impact the spread of Covid 19. Tenants wishing to take advantage of the moratorium were required to submit a declaration stating the pandemic had caused hardship, and they also had to provide documentation that they had reached out and applied for any and all financial assistance available. They also were required to state they would face homelessness if evicted. Here’s what the eviction moratorium means for landlords, and recommendations for landlords looking to sell to an investor who pays cash for houses in Chicago. Of course, landlords should always consult a real estate attorney for complete and final advice.
Cash For Houses In Chicago – What Choices do Landlords Have?
Evictions Not Due to Non-Payment
Evictions for reasons not related to non-payment of rent during the eviction might still be able to be processed. The eviction moratorium is not a reason to tolerate tenants committing criminal acts, threatening other tenants, or for any other legitimate reason for eviction. Of course, landlords should always practice due diligence to ensure the tenant doesn’t qualify for the terms of the moratorium. Landlords should also be prepared to withdraw from eviction proceedings in a situation where the tenant can produce the required documentation to support a case for financial difficulties. The landlord should be aware of not only the standing eviction moratorium but any other state or local government orders regarding tenants and evictions. Civil penalties for the landlord and/or the resident are a risk, and landlords can be fined large sums for violations standing orders.
Even though cases for eviction due to non-payment won’t be heard until the eviction moratorium expires, there was an update made to the original CDC order which allows landlords to start the eviction court proceedings prior to its expiration date. While the actual eviction cannot take place while the order is effective, the update provides clarification on the original order’s guidelines and can be found under the frequently asked section of the CDC website. Evictions can take 3 to 30 days, sometimes longer. Depending on the local laws governing the property issued at the end of the moratoriums put in place due to the pandemic, courts will begin processing evictions. These proceedings may begin as early as January of 2021. Landlords should keep up to date on recent court cases that have been filed, fighting the moratorium on behalf of landlords, which are based on the premise that the CDC doesn’t have to constitutional authority to enact policies on rent.
Partial Rent and Repayment Plans
When the order expires, not only will the unpaid rent still be owed by the tenant, their monthly rent payments will still be due in full from that date forward. One way to handle overdue rent is to discuss a plan with tenants to being making partial payments during the moratorium to avoid a huge lump sum due on December 31st. Ultimately, if a landlord has good tenants who were otherwise paying on time, it would be beneficial to keep the tenants rather than try to find additional qualified renters while units sit empty with no rent coming in at all. Whether the unit has a protected tenant in it, or no one in it, landlords might have to try to get some sort of financing to cover the missing income. Another option is to take tenants to court later to try to recover the back rent. These last two options are not guaranteed to replace the lost income, especially because the tenant’s financial hardship is the original reason for non-payment of rent.
Whether a landlord wishes to look for an investor who pays cash for houses in Chicago or not, whenever possible, landlords should contemplate putting together repayment plans for the accumulated back rent for each tenant. In most cases, the tenant and landlord wish to work out arrangements to keep their relationship amicable and reduce the chance that the tenant will have to leave. If both the tenant and the landlord can afford this option and agree on a payment plan in monthly amounts which would be in addition to future monthly rent payments, then good tenants can stay. Most landlords wish to help families keep their homes, and most tenants understand the landlord has financial responsibilities as well. Making a plan well before the December 31st deadline will put both parties at ease and help mitigate the uncertainty.
This is probably one of the most important habits a landlord can create, whether during an eviction moratorium or during ‘normal’ times – keeping and maintaining records of the communication between the tenant and landlord in case for some reason things progress legally. Having a record of all communication allows a landlord to have every piece of evidence available to show the steps that were taken to work with tenants. It also allows a landlord to create best business practices to avoid having to evict a tenant altogether, but instead to see how an amicable agreement can be reached. Avoiding eviction, helping a tenant leave on good terms, and avoiding disruption of other tenants relationships within the rental property are all benefits of this type of system. Ultimately, the documentation provides a backup in case the tenant attempts to omit or change any facts during any court proceedings if for some reason the open communication didn’t work to part ways in agreement. The best way for a landlord to be protected is to follow the order’s guidelines and keep records of having done so. This is usually a surprise to most landlords who own a small number of properties, since sometimes a person becomes a landlord only after having inherited a house from a loved one who passed away. There are lots of pros and cons to being a landlord, and the law is usually in favor of the tenant. If you’re wondering whether to become a landlord or to sell a house you’ve inherited, make sure you do your research in what it takes to be a landlord.
Cash For Houses in Chicago – Landlords Who Want to Sell
What if you’re a landlord and you’re ready to sell your rental property quickly? Maybe you were considering selling and retiring, and the moratorium has been the final straw. You may have owned your rental property for years and have had a good run, but are ready to end the hassles that can come with managing tenants and toilets. Finding qualified tenants, keeping them, chasing down rent and having to be available for 24/7 emergency repairs have just gotten too burdensome to try to manage any longer. If you’re feeling this way, you’re not alone. Many landlords are looking for a quick way to sell and even move out of state. Maybe you need an investor who pays cash for houses in Chicago, so you can sell more quickly and have access to your proceeds in order to retire.
At Kendall Partners, we work with sellers every day who are ready to move on from a burdensome property and the costs and risks of owning a house. Homeowners who have inherited an unwanted property, need to help aging parents sell and move, owe years of property taxes, or just are ready to sell quickly and move out state are all looking for a way to sell quickly without having to make a lot of repairs or wait for weeks while their house sits on the market. We’re your trusted, local cash home buyer. We are professional and discreet, helping sellers who want to sell a house directly without having photos up online and parades of strangers walking through the property for showings.
Cash For Houses in Chicago – Sell Your Rental As-Is
Many sellers are concerned about the condition of the property they need to sell. Often it needs major repairs or has code violations that aren’t easily resolved. This might be as big as structural repairs, a seeping basement or a leaking roof, or it can be cosmetic upgrades which end up creating the need for a major remodel of the kitchen and baths. Most homeowners just don’t have the financial reserves, time, or expertise for such improvements. And honestly, there’s no guarantee a seller will make the investment in repairs back in the sales price of the house. When you sell your house directly to Kendall Partners, we take on all the work you don’t have the time or money for. We offer you a fair price and take on the risk of managing a project. We’ve been buying houses as-is since 2007, and we’ve seen properties in all kinds of conditions — even vacant houses full of personal contents and critters living in the attic. If you’re looking for someone who will pay cash for houses in Chicago, and you’re concerned about the condition of the property, give us a call today at )630) 389-8232 to talk over your specific situation and see if we’re a good fit to sell quickly.
Cash For Houses in Chicago – Sell Your Rental For Cash
Most landlords understand the benefit that a cash sale brings when you’re looking to sell a property quickly. With no buyer financing, this reduces the time and requirements for underwriting. Depending on the type of loan a buyer is using, there may be several inspections required for approval which means not only disrupting tenants for several lengthy inspections, but it opens up the possibility of having to offer large credits or a priced reduction for repairs. Since it can take a while for a loan to be approved, the landlord is still responsible for the risks associated with owning a rental and managing tenants for the full length of the transaction. This can get tricky if the tenants know you’re in the process of selling and decide to try to avoid paying rent in hopes of either putting off payment or not paying for a month or two at all while the property is being sold.
Just owning a property has risks and costs money, even if the property is vacant. The holding costs add up each day until the property is sold, including a mortgage if there is one, insurance, interest, property taxes, maintenance and repairs, and utilities. This can total in the thousands every month depending on the value of the property, the tax rate, and the mortgage payment. If you were to list your rental, it may take quite a bit of time to get it ready for listing, put together the financials an investor requires to evaluate the investment, schedule showings and communicate with tenants, and wait for the buyer’s financing. This just doesn’t work for every rental owner who wants to sell quickly. A direct cash sale to a cash home buyer like Kendall Partners can be the right option for a seller who is ready to sell quickly and sell the property in as-is condition.
Cash For Houses in Chicago – Sell Your Rental Fast
The reality is a traditional real estate transaction can take anywhere from 65 – 95 days, with at least one to two months of time being listed for sale. When using a real estate agent and listing a property, there are usually some repairs and upgrades you will need to make in order to attract buyers. Depending on the local market, an investor may or may not care a lot about upgrades and may just want to continue with any existing tenants. Another investor may want the building itself and might be looking to add value and increase rents to compete with other local rentals. Each deal is unique and needs to be evaluated. One landlord may be able to list a property and wait for a while to get the right deal, but another may be ready to sell as quickly as possible.
Kendall Partners is your local, trusted real estate expert. We’ve been buying and selling single family homes and multi-unit rentals since 2007. We’re very familiar with what repairs and upgrades are needed and how to market each scenario – whether it’s a value property, median value, or top-dollar. We’re able to discuss your particular rental and the scenario – why you’re looking to sell and how soon. We buy properties using cash, and we have that cash available in as little as 14 days after the signing of the contract. Our simple one-page contract clearly states the purchase price and terms of the sale — no small print! We’ve helped many sellers and landlords sell a burdensome property and move on, taking the hassle and uncertainty out of selling. Check out our testimonials to hear from satisfied sellers here, and check out our 5-star Google reviews from even more sellers here. If you own a rental and you’re looking for an investor who pays cash for houses in Chicago, give Kendall Partners a call at (630) 389-8232 to discuss your unique situation and see if we’re a good fit for you.