LOS ANGELES, Jan. 15, 2019 /PRNewswire/ -- Independent landlords across the country are working with government employees unable to pay their rent, but many find themselves unable to cover their own expenses and with their own credit in peril, according to The National Association of Independent Landlords.
Without rent payments, thousands of landlords are unable to cover mortgages, repairs, utility bills, insurance and occasionally even their own living expenses.
"Many people think landlords are wealthy, but many are just mom-and-pop investors who own a property or two and have mortgages they've got to pay every month, regardless of whether they get paid. Our hearts go out to federal employees not receiving their salaries since most people live paycheck to paycheck, but the shutdown has a ripple effect that's only obvious if you're in the trenches," said Tracey Benson, president of The National Association of Independent Landlords. "This isn't about greed."
Housing represents a family's largest expense. Roughly 800,000 furloughed federal workers owe some $438 million in mortgage and rent payments this month, according to real-estate firm Zillow. This approximates to $189 million in rent and $249 million in mortgages that may not be paid on time.
"These rent payments are our retirement income. I can't go into the grocery store and walk out with a month's worth of groceries and say 'I'll pay you whenever the government decides to pay,'" said one North Carolina landlord.
Landlords who miss mortgage payments won't face immediate foreclosure since banks usually allow up to four missed payments before a loan goes into default, but even one late payment can hurt a credit report for up to seven years. Likewise, tenants unable to pay their rent because of the shutdown are unlikely to be evicted, according to landlords. But they too could see their credit suffer if they don't keep their landlords informed of their financial situation and set up a payment plan.
About The National Association of Independent Landlords
The National Association of Independent Landlords is the country's largest provider of services for independent landlords. Services include credit reports, electronic rent collection and tenant screening as well as information about property management, rental laws in all 50 states and other issues critical to property owners.
Contact: Tracey Benson
The National Association of Independent Landlords
SOURCE The National Association of Independent Landlords