Wednesday, May 5, 2021

Renter's Hiding Behind Covid-19!

 Renters hiding behind Covid-19.  


I just read an article by Nikki J. Salgat, Esq.  an Attorney with the Arizona Association of Realtors.  Let me summarize for you in English. 


The CDC extends its moratorium on evictions until June 30, 2021.  The Consumer Financial Protection Bureau CFPB issued a rule that ANY debt collector conduct violates the Fair Debt Collection Practices Act FDCPA.  

What is “conduct”?  Those who evict Tenants for non-payment is conduct.  These businesses must provide NOTICE of what rights Tenants may have.  This ruling goes into effect May 3, 2021.


Her basic question is “Are Property Managers Debt Collectors?”  The answer is YES if the Lease was signed after Covid-19 started.  Before Covid-19, the answer is NO.  The question she doesn’t answer is, what date did Covid-19 start?

31 Dec 2019

WHO’s Country Office in the People’s Republic of China picked up a media statement by the Wuhan Municipal Health Commission from their website on cases of ‘viral pneumonia’ in Wuhan.


I think the exact date of when Covid-19 started is questionable. This date of 12/19/20219 is when a Chinese Health Commission published knowledge of the ‘viral pnuemonia’ on their website, it probably started before then.  For the sake of this argument, let’s agree that 12/19/20219 is the start date.  


Any lease created before 12/19/2019 is exempt from the rule that Property Managers = Debt Collectors.  


This is language that Ms. Salgat recommends that Property Managers put into their notices:


“Because of the global COVID-19 pandemic, you may be eligible for temporary protection from eviction under Federal or Arizona law, including an Order issued by the Centers for Disease Control and Prevention.  To understand your rights and obligations you may visit www.cfpb.gov/eviction, www.azcourts.gov, or call a housing counselor at 800-569-4287.”


Renters are in a perilous position anyway.  If they don’t pay, their bill just accrues and gets bigger.  All they are doing is stalling the eviction.  If their end game is to BK out, then they shoot themselves in the foot with respect to credit score and future rental prospects.  In my opinion, the moratorium on evictions is stupid and harmful.  Just watch the eviction and BK case skyrocket when the moratorium is lifted. It’s gonna be painful. 


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Best,


Geoff Nowlin, Phoenix Realtor

480-466-3737

www.5kflatfeelisting.com

nowlin.geoff@gmail.com







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