A Moratorium on Evictions? No F-ing Way!

Industry News,

[time-restrict on=”2020-04-23 17:00:00″ off=”2020-04-23 17:37:00″].
[/time-restrict]It is unfortunate that tenant rights groups are using the Coronavirus scare as an excuse to let our renters skip paying rent as if we rental housing providers, particularly those of us that are smaller, “mom and pop” owners, do not need to collect rent to pay our operating costs and living expenses. It is hard to believe, but it is true. And now, state and local officials have listened and now proposals are being made to place a moratorium on eviction of renters affected in some way by the Coronavirus such as, among other things, if renters have experienced job loss or reduced compensation due to the Coronavirus. Sometimes, I just wish that California would really sink into the ocean!

So, now, we are supposed to allow renters to live at our properties for free? For how long? This is exactly why California and local city governments should create an emergency rent subsidy fund to pay rent for tenants experiencing healthcare or employment emergencies. But instead, elected officials like to go back to their “same old” playbook and continue punishing private property owners by forcing us to accept responsibility and solely take on the burdens of the latest crisis whether it be homelessness, housing shortages or the latest crisis, the Coronavirus. Are we now supposed to allow people to live at our properties for free?

It’s crazy that the City of Los Angeles and our State’s Legislature refuses to see that an eviction moratorium only causes more people to be harmed — particularly small, “mom and pop” rental property owners who, in many cases, live pay check to pay check and rent check to rent check, and do not under any circumstances have the resources to support the families of the people that rent their apartments.

Although the City of Los Angeles has proposed to “ask” banks to forgo foreclosure of loans held by owners that are not receiving rent during this Coronavirus crisis, neither the City nor the State of California has jurisdiction over our country’s banks – banks, in most cases, are regulated by the Federal Government, and not State or local governments. So, “good luck” thinking that the City of Los Angeles, or any other local jurisdiction, or the State of California could get anyone a break on their mortgage payments during this time of crisis.

So, here we are with the City and State trying to force rental property owners to give a break to the people living at our investment properties by housing them for free. If these government entities and officials want people to remain in rental housing, then these government entities should step in and pay for it. Do they plan to make grocery stores stop charging for food during this health crisis?? No one knows how long this health crisis could last. Besides, based on medical experience so far, a very high percentage of those inflicted will survive the Coronavirus with no medical assistance just as they do with other viruses, such as common flu and colds. Although some of the inflicted will require medical attention, relatively few will experience critical conditions and even far fewer will die from the virus even if they have other health issues.

Such a moratorium on evictions is simply wrongheaded. If the government wants to step in and take care of its citizens, then government should do so through emergency rental vouchers. One small segment of our society, rental property owners, should not shoulder the Coronavirus burden or any other societal crisis. Whether it be homelessness, housing shortages, stock market crashes, gasoline shortages, or the Coronavirus, these issues should be addressed by the whole of society and not by just a bunch of us “landlords.”

While we will argue and argue and continue to argue some more against ill-conceived concepts like eviction moratoriums, our arguments will likely fall on deaf ears. We property owners’ investments and livelihoods are always expendable in the eyes of our political leaders. If we landlords were to suddenly be inflicted by the Coronavirus, job loss, death in our family or some other personal crisis, that doesn’t matter – what does matter is that we are housing our tenants for free.

Unfortunately, this whole moratorium “thing” and the arguments we will make against the eviction moratorium will inevitably be moot. As a result of the panic being caused by the Coronavirus crisis, courts throughout California will not be hearing eviction cases for several months as they focus only on cases deemed to be emergencies. Sadly, our investments in rental properties and our ability to pay our mortgages, property taxes and 100’s of other expense just do not seem to be important to anyone other than ourselves.

It’s a crazy world we are in, folks. It seems that California is getting crazier and crazier. Perhaps if California were to fall into the ocean, it would cleanse us of its stupidity.


Earle Vaughan

Director and President of AAGLA

Mr. Vaughan is the third generation of his family to own and operate apartment buildings in Los Angeles; he currently owns and manages 15 properties. Mr. Vaughan earned a Bachelor of Science Degree at UCLA, and received a Master’s Degree in Business Administration from California State University, Long Beach. He is a retired educator for Page Private Schools, a business founded by his great-grandparents in 1908. Mr. Vaughan has been a Director of AAGLA for more than 15 years, serving in Finance, the Los Angeles Government Relations, State Legislative and Publications Committees; he also contributed immensely to the organization during his tenure as President.