THE EVICTION MORATORIUM SAGA

Hello everyone. This is Juan Carlos Gastelum. I am a real estate investor in Texas. We recently got news on what would be hopefully the final episode in the Eviction Moratorium saga. As you may recall, the CDC -the Center for Disease Control- issued an order to continue the Eviction Moratorium all the way up to October 3^rd., 2021, thus granting an extension of the Eviction Moratorium. However, the Supreme Court at the end of August 2021 ruled that the Eviction Moratorium extension is unconstitutional, therefore ending the Eviction Moratorium and thus this tug of war between the landlords or investors and tenants. This is a new breath of fresh air for investors and their investments, so that they can have certainty in knowing that they can get a good tenant in and continue to generate income on their investments, and consequently continue to pay their mortgages. Now, is this final? Well, according to the ruling by the Supreme Court, if Congress enacts the Eviction Moratorium into law, then it could continue indefinitely and probably or most likely, up to 2022. However, we will still need to watch for the $46 plus Billion Dollar in stimulus packages that are still pending to be dispersed. Apparently, only about $5 Billion have been issued or disposed towards the stimulus of the economy.  So it’s not a matter of who gets the short end of the stick, whether landlords or tenants, but of working jointly towards recovering from COVID and making the economy work for everyone.  In the meantime, we will continue to see prices of real estate rise, and that in turn, will trigger rents to rise. And while the interest rates remain low, this is still a good opportunity for investors to get into the real estate market.  Our tip for today is to be mindful of the economic trends, the impact that the judicial decisions can have on the real estate markets, and what Congress will allow in terms of continuing the Eviction Moratorium; that, coupled with doing proper screening for tenants, will certainly create a better output for your real estate investments. So that’s it for now. Take care, best wishes on your real estate journey and God bless!