Resident Interface Newsletter
Q3 | Resident Interface Newsletter
Time to Prepare for a New Evictions Landscape
Traditional evictions haven’t been a part of multifamily property management since early March 2020. However, barring another extension of the federal eviction moratorium, which concludes Oct. 3, evictions will become a reality for operators once again following a 20-month hiatus.
Now is the time for property management companies to position themselves for eviction management and success. Due to the anticipated eviction volume, the focus should be on efficient, effective revenue recovery.
Unfortunately, the standard eviction methods deployed pre-pandemic will only prolong the recovery process for operators. After struggling nearly two years under the uncertainty of a continually moving moratorium deadline, a renewed priority will be placed on rapid debt recovery and the righting of the ship at the property level. Eviction management – often an afterthought at the property level – will be at the forefront of those efforts.
A reactionary approach to evictions will no longer suffice, but the burden will be too great to place on property teams alone. Operators will require a comprehensive, software-based case management system to streamline case processing. Property management companies need a partner that helps to establish a proactive approach, ensure that paperwork is ready, complete, organized, and compliant throughout every step of the eviction process.
Operators also need to be empowered to track their eviction filings through every legal checkpoint. In terms of oversight, eviction proceedings have historically been a black hole, with limited monitoring capabilities afforded to property managers. Modern eviction solutions are changing that dynamic. By providing a network of best-of-class attorneys and managing correspondence with attorneys and the court, visibility into case status is significantly improved.
As multifamily emerges from the shadow of eviction moratoriums, it will be imperative to adopt a new methodology for revenue recovery. The landscape has changed dramatically for the industry, and those operators who adapt and deploy the tools necessary to hit the ground running will be best poised to put the pandemic-era restrictions behind them.
White House Announces Steps to Increase Affordable Housing: Affordable Housing Finance reports that the HFA risk-sharing program is returning after being suspended which can lead to 100,000 affordable homes for homeowners and renters over the next three years. Read the article by Donna Kimura on how financing is being made easier for affordable housing.
Colorado’s COVID rent-assistance program is now paying out five times more following changes: The Colorado Sun reports that the state government has paid out “approximately 75% of funds that have been approved for ERAP assistance…” However, it likewise reports that faster payments are coming from local governments. Read more on how Colorado is serving its renters and operators.
Apartment Rent Payments at a Three-Year Low from April - September: Erik Sherman reports for GlobeSt.com on the latest NMHC Rent Tracker data which highlights a new low in rent payments. While experts feel the impact is more because of the Labor Day weekend and Hurricane Ida, they are still optimistic about rent growth. Read more on GlobeSt.com.
RESIDENT INTERFACE NEWS
- Corporate Eviction Management
- The New Revenue Recovery
- The Top 5 Eviction Best Practices
Resident Interface sat down with some of our Legal Council Partners to gain an understanding of where eviction filings may be slowed down. Their responses were eye-opening.
When asked, “What percentage of property managers that you work with serve the notices to quit on the earliest date allowable under the lease?”
“Close to zero.”
- K.E., Florida
“The clients that don't have a calendaring system, and are awfully forgiving such as ‘OK, I'll wait another day. I'll wait another day, I'll wait another day,’ they always have a higher delinquency rate and a lower collection outlook.”
- J.O., Georgia
When pressed further about how timely case filings are sent after the notice grace period ends, they responded:
“Rare that I get a case right after the notice grace period has expired. Sometimes they wait to the 20th-27th of the month, or even until the second-month delinquency occurs.”
- K.E. Florida
“There's a wide variety in the percentages there's not a lot of them that stick to the letter of their policy. A lot of operators say if you don't pay by the 17th we're going to file. They are sending 30-day notices that expire on the 7th of the month and we don't get a case in our queue until the 15th or 16th. Some of them send a 30-day notice in May and then send a follow-up last chance letter in June, that goes out on the 6th and says you know you've got until the 11th this month to pay, which technically just gave the resident 41 days instead of 30 days. There's quite a variety of approaches and you know it really is all over the map.”
- C. L., The Carolinas
CONFERENCES & EVENTS
Conferences are back! And we are excited! Here are the upcoming events you can connect with the Resident Interface team
- NMHC Fall Meeting | Sept. 22-24, 2021 | Tracy Simonton Legg
- PMExpo | October 7, 2021 | James Neely & Matt Barbieri
- Florida Apartment Association | October 13-17, 2021 | Mark Stephens & Kathy Karamitsos
- MRI Ascend Cleveland 2021 | October 17-20, 2021 | Tracy Simonton Legg
- NARPM Conference | October 26-29, 2021 | Mark Stephens
- NAA Assembly of Delegates Meeting | November 2-4, 2021 | Tracy Simonton Legg
- NMHC OPTECH | November 8-10, 2021 | James Neely, Tracy Simonton Legg, Mark Stephens, Vicky Herron
- PM Nation | November 15-16, 2021 | TBD
P.S. We invite you to follow Resident Interface on our new LinkedIn page. Hear from Resident Interface clients on their successes, keep tabs on revenue recovery news and insights on how to improve your bad debt collections.