The continued eviction moratoriums in place during COVID-19 are creating a significant problem for many owner operated, rental property owners.

The legislature has passed Senate Bill 5162 which will make it more difficult for property owners to recover lost rent from those renters who have not been playing by the rules.

Since the moratoriums were instigated by the state last year, the majority of renters have paid rents on time. When renters’ jobs were eliminated during the mandated shutdowns, many have continued to work with property owners to pay what rent they could.

There are, however, less than honest individuals who have taken advantage of the moratoriums rules and have not been paying despite having the financial ability to do so.

In one such case in Puget Sound, a property owner explained to the Washington Policy Center that the renter currently in their rental property has failed to pay them any money at all since moving in early last year. The renter is obviously using the moratorium as an excuse to avoid paying rent. The property owner has been required to make several repairs to the property due to renter neglect and continues to pay the mortgage on the property.

Many rental properties are owned by individuals, not corporations. When rent isn’t paid, the inability to remove problem tenants has placed property owners’ own homes and financial stability in jeopardy. The lack of rental income has created a situation where property owners can’t afford to pay both the rental property mortgage and their own home mortgages. This is forcing property owners to make a hard choice.

There are only two options available, under the eviction moratorium rules, to a property owner when faced with the inability to cover the unpaid rent. Either they can move into the rental property themselves or sell the property.

Understandably, this is a difficult situation for both the renter and property owners. Many reach agreements with payment plans or reduced rent. It is nearly always in the best interest of the renter and property owner for the renter to stay in the property.

It is the renters that are abusing the moratorium deliberately, that will force property owners to make a hard choice.

While Senate Bill 5162 is attempting to protect renters from opportunistic property owners, it doesn’t protect a property owner from those renters who are misusing the system. In the case of the owner that spoke with the Washington Policy Center, the option for them to evict the problem tenant due to non-payment is now prohibited, making a solution the problem, that much more difficult.

COVID-19 has made it difficult for renters and property owners to pay the bills. Sometimes the options just run out and hard choices must be made. Senate Bill 5162 has muddied the rental market waters and unfairly restricts reasonable property owners from managing their properties appropriately.