Cash-strapped landlords fail to evict tenants
Across the country, evictions are down. The question is asked, why? The obvious answer would be that tenants are paying their rent on-time. That answer would be wrong, in-fact quite the opposite. Less Tenants are paying their rent on time. So again, why are evictions down? The fact is, landlords can simply not afford the costs associated with an eviction. Most would rather have late rent, than none at all. Because the fact is, if they evict a tenant, chances are that the space/dwelling would remain empty for an extended period of time. Many Apartment buildings are filing for bankruptcy. Others are looking for Recapitalization financing. With conventional sources still not loaning funds, chances are scarce that their project will be relieved, unless they turn to alternative sources of capital.
Read about Phoenix’s landlord crisis here.
Tags: Distressed Owner Recapitalization, solutions to the financing crisis