Given the havoc wreaked by COVID-19, property owners aren’t pleased with the prospect of a proposed rent forgiveness and think it can “lead to a domino effect on missed payments,” reads Crain’s New York.
“I don’t think there should be a moratorium on all payments,” said Alan Hammer, a real estate attorney at Brach Eichler, and owner and operator of more than 80 buildings in New Jersey and eastern Pennsylvania. “For the system to work, you can’t just paint with a broad brush. The system needs money in it.”
But with many unable to meet their rent obligations, some form of relief is direly needed.
“You’re going to have a whole universe of people who will not pay their rent on April 1,” said Jonathan Fox of the New York Legal Assistance Group.
With over 80,500 people recently applying for unemployment benefits, in New York alone, some landlords still think that all or part of that money needs to go to them – to be used to pay rent.
“Hammer said that in the apartment business, landlords don't pocket all the rent. Mortgages take up 20% to 40% of the income, and utility costs take 15%,” reads Crain’s. “Then there’s quarterly tax due May 1, as well as various real estate taxes that help municipalities pay for teachers and public safety.”
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To read the full story in Crain’s New York, click here: https://www.crainsnewyork.com/residential-real-estate/landlords-fear-whole-universe-people-wont-pay-rent-april-1