May 26, 2020
By Roxana Baiceanu
Jonathan Woloshin, Head of U.S. Real Estate, UBS Global Wealth Management’s Chief Investment Office. Image courtesy of UBS
...Woloshin: (click here) So far, May rent collections are running ahead of April, although the month is not over yet. I believe it is explainable by several factors including:
• the direct funds from the CARES Act.
• the significant increase in unemployment benefits that the federal government added to state-level benefits.
• the willingness of landlords to work out payment plans with renters who have demonstrated their hardship arising from COVID-19.
• the desire for tenants to maintain good standing with their landlord and credit ratings.
• the significant increase in unemployment benefits that the federal government added to state-level benefits.
• the willingness of landlords to work out payment plans with renters who have demonstrated their hardship arising from COVID-19.
• the desire for tenants to maintain good standing with their landlord and credit ratings.
Woloshin: The longer the lockdown is in place, the greater the risk of nonpayment. The federal unemployment benefits expire at the end of July. In addition, several states have extended eviction moratoriums, and California is debating a bill that would allow tenants to have a year to pay their rent with no penalties or eviction. The longer this crisis goes on, the more political pressure there will be at the state and local levels to protect tenants. In addition, the growing calls for rent strikes cannot be ignored....
