The Process of Taking People’s Homes Away for Not Paying Rent

A practical guide for those affected — and those who aren’t.

Whether you are a landlord, tenant, real estate professional, bank employee — what is about to happen affects us all.

This impact will be significant regardless of whether you can pay your own rent or mortgage. In the US, there has been a housing crisis since before the health crisis and that has been brought forward. The health crisis brought about the Cares Act and rental freezes to help us put this disaster behind us.

Those rental freezes have begun expiring and now the process of evicting tenants who don’t pay rent has become a reality. At the same time, landlords may not be able to pay their loans and homeowners who don’t have a job could struggle to pay their mortgage. 20 million to 28 million renters in America alone are estimated to be close to losing their homes through eviction.

Before you become saddened by the situation and feel like life might be pointless, I want to give you hope.

This crisis gives us the opportunity to allow camaraderie to thrive, the human spirit to be reborn, and for us to see ourselves in the struggles of others.

This is the unofficial guide to those affected by what is happening.

Your Decision Affects Us All

Whether you are on the tenant side, landlord side, industry side, or homeowner side — how you deal with this situation affects us all.

We’re all in this together. That thought can guide your decision.

Landlords, before you evict a family, think about what that will do. It will put them on the street and increase homelessness. Their wider family will hear the story and be affected.

The sheriff will have to come and escort them from their home. He will have to tell his wife and kids about it when he gets home. The local banker is going to see the look on their face when they attend the bank in person to discuss the situation.

Tenants, before you stop paying rent, think about what that will do. The landlord may not be able to pay their repayments on their loan. The bank could then take their property away and this could affect their other properties.

The landlord may end up going bankrupt because you are not paying rent. The home may have originally belonged to their mother who has now passed away and was hoping to see the property stay in their family. That home may contain a lot of memories for both you and the landlord.

Homeowners, before you walk away from your home because you can’t pay the mortgage, remember what that will do. If everybody does that then the neighborhood is going to look pretty bad. Is there another way? Have you tried every option? Can you ring the bank or ask your family for help?

Bankers, before you deem someone to have defaulted on their loan, have you done everything you can? Could another week make all the difference? Would a change in payment arrangements save someone’s home? Are the owners likely to get another job again in a few weeks that could completely change their situation? Foreclosing is bad for the bank and the homeowner.

Real estate agents, before you evict somebody, have you tried to liaise with the landlord and the tenant? Maybe both parties can find a middle ground. There is always a solution if the person in the middle can broker compassion.

There are many dominos that will fall in this crisis and we are all responsible for letting those dominos fall the way they do. Is there another way?

Think about the decision you make — no matter what side of the crisis you’re on — in the context of “us,” not “them.”

Communication Is Critical

The tenant is not a thief for being unable to pay rent. If you’re a landlord then remember your property is somebody’s home.

The landlord is not a money-making capitalist, either, who wants to see their tenant on the street.

The way to work out the situation is to communicate clearly, openly, without bias, and with the heart of a giant. Nobody wanted this health crisis to occur. It has hit every country in a catastrophic way. What if this crisis was about the survival of the human species? How would an eviction appear then?

When all parties are openminded, progress can be made. If not, then the courts become overloaded and everybody loses. Communication is the lubricant of this stiff situation.

If You Can Afford to Weather the Storm, Then Do So

If you are a landlord and you can afford to go without rent until your tenant gets back on their feet then do so. Make it your charitable contribution for this year if you have to.

Be part of something bigger than yourself.

If you are a tenant and you can pay rent but choose not to because you have the option or have found a loophole, consider changing your ways. If you don’t pay rent and can, you’re making this disaster bigger than it needs to be.

Think of it like this: you don’t pay rent. Your landlord doesn’t pay their loan. The bank takes away their property and they end up in financial trouble. This results in them not being about to pay the mortgage on their own home. They end up on the street. The cycle of ruin continues.

If you’re doing well financially, now is not the time to be selfish. We need you.

Practical Solutions That Are Better Than Taking People’s Homes (Lives) Away

Youtuber Graham Stephan who is a real estate agent, real estate investor, and landlord with seven properties believes there is another way too.

1. Payment plans

Graham says, “eviction should be a last resort.”

If the majority of landlords decide to be heartless and selfishly evict and punish their tenants, then the courts are going to be clogged up and the eviction process will take a long time leaving them further out of pocket. The tenant may even trash the property if they believe hate is the driver.

Less rent or a payment plan is a cheaper option than months and months of further unpaid rent and a property that can’t be put back on the market. And even when the property is vacant, finding another tenant could be difficult.

A deal between a tenant and a landlord is a demonstration of people working together to create magic and end the devastation.

2. Cash for keys

This is a unique circumstance that calls for creative approaches. Cash for keys involves the landlord paying the tenant to leave the property by a certain date.

• The landlord can get the tenant out faster.
• The landlord can rerent the property faster.
• Some of the savings can be passed back to the tenant to help them with this difficult time.
• Less downtime means less stress for both parties, and more months of paid rent for the landlord.

The Unconventional Approach

Let’s be radical with our thinking towards this problem. There is always a way to take a situation to the next level (higher consciousness).

Stay in touch with the tenant after they are gone

As a landlord, the default thinking would be “see ya later pal!” to a tenant that stopped paying rent. Is that the best you can do?

Why not stay in touch with the tenant? Check in on them once in a while. See how they’re going. Ask them if you can offer help, even if it’s just advice or a conversation between two people.

The people we meet in our life are special.

At the end of your life, you’ll feel better if you knew deep in your heart that you left people slightly better than you found them. Now is your chance.

It could be you

Landlords, before you think about releasing more hell on everyday people who are affected by this recession and health crisis, think carefully.

Your property portfolio could collapse pretty easily. You could be out on the street just like your tenant is about to be. How would you want to be treated? What lifelines would you pray for?

So if you could lose everything too and become homeless through a bunch of unfortunate events, how different are you to the tenant?

The next level of thinking is this: your tenant is YOU.

This is a test of humanity. Will we work together and thrive, or allow each other to face ruin and see the demise of everything we have built. I believe we are about to see the biggest human comeback in history.

This setback is going to define us in a positive way and remind us what is important: each other.

Strap on your life vests and let’s show this crisis what we’re made of.

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