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Atlanta landlords react to eviction hold
Landlords react to the Centers for Disease Control and Prevention's push for a nationwide eviction hold.
ATLANTA - Renters and landlords across the country are reacting to the White House order through the Centers for Disease Control and Prevention that declares evictions during a pandemic a national health hazard.
Landlords are holding their breath and hoping a temporary, national hold on evictions doesn’t start a vicious cycle.
Founder and CEO of 33 Holdings, Sanjay Raghavaraju told FOX 5's Alex Whittler he's concerned this will make matters worse for all parties involved, including tenants.
"There’s a huge huge trickle effect happening," Raghavaraju said.
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Raghavaraju's 33 Holdings owns more than 100 properties in Atlanta, including family homes and apartments.
Raghavaraju said rent can range from $750 to $1,800 or more depending on the unit and property.
If tenants don’t pay rent, landlords can’t pay their mortgages, and insurance on properties, which could ultimately have a negative impact on the housing market.
Sanjay Raghavaraju said he’s concerned people who can afford to pay rent will use the eviction hold to their advantage and choose not to pay it.
"That’s how we’re paying mortgages, taxes, so I’d hope the same legislation would allow landlords not to pay our rents, not to pay our taxes," he said.
As of right now, that hold on tenant evictions lasts until December, but Raghavaraju notes late fees will add up.
"It’s not going to do them a favor either, it’s just going to make a time bomb at the end of the year," he said.
Tenant advocates applaud the eviction action, but many, like Raghavaraju, said the move lacks financial relief for tenants and landlords.
"We will abide by the laws, but it’s going to stop us from our duties. I wish they took those things into consideration before enacting those laws," he said.
The administration suggested leftover CARES Act Funds for landlord financial assistance, but those in the industry fear most of that money is gone.
"I wish there was a better way to do this, like if they don’t pay rent, we can incentivize the landlords, like what are some other ways that everyone in the system is taken care of instead of encouraging the consumer on one side which is good, but you’re creating a bunch of different problems," he said.
Tenants must prove they have had financial hardships during the pandemic, have sought government assistance for rental payments, and would be forced to move into crowded housing, if evicted.
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