Rent Payment Obligations During Covid-19

The COVID-19 pandemic has led to job losses and pay cuts, making it difficult for many to pay their rent. While some governments have introduced emergency legislation to prevent tenants from being evicted from their homes, it is not a rent freeze. Tenants are still responsible for paying the rent and are encouraged to communicate any financial difficulties to their landlords as soon as possible. While landlords cannot change locks or remove a tenant's property, they can start eviction proceedings. To avoid eviction, tenants can apply for COVID-19 financial assistance or negotiate with their landlords to come to a mutual agreement on rent reductions and repayments.

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Rent strikes and freezes

The COVID-19 pandemic has led to a surge in unemployment, with millions of people losing their jobs. This has sparked discussions about rent strikes and freezes. While some governments have implemented measures to protect renters, such as suspending evictions and providing financial assistance, there is a demand for more comprehensive relief.

Rent strikes, such as those organized by tenants' unions, are a tactic to pressure landlords to make concessions and join the push for legislative relief. During the pandemic, RentStrike2020, a national organization, called for a two-month pause on rent, mortgage, and utility bill collection, threatening a rent strike. Similarly, the LA Tenants Union advocated for a rent forgiveness program, urging tenants to inform their landlords that they would not be paying for the month.

In some cases, rent strikes have led to concessions from landlords and universities. For example, the University of Manchester students launched a rent strike, calling for a 40% rent reduction, which resulted in the university cutting rent by 30% for all students in residence. Additionally, the Autonomous Tenant's Union in Chicago advocated for rent, mortgage, and utility freezes.

Rent freezes have also been proposed as a solution to prevent landlords from raising rent during the crisis. Some states and local governments in the US have responded by freezing rent and mortgage payments. For instance, the governor of Oregon suspended eviction for non-payment of rent for 90 days, while the governor of Arizona ordered a 120-day stay on eviction orders for those facing hardship due to COVID-19.

While rent strikes and freezes provide temporary relief for renters, they do not address the underlying issues of housing affordability and insecurity. It is important for governments to implement long-term solutions to ensure stable and affordable housing for their citizens.

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Eviction rules

The rules regarding eviction during the COVID-19 pandemic vary depending on the region. Here are some guidelines to provide a general overview:

• In some regions, eviction rules have been temporarily modified to protect tenants from eviction due to non-payment of rent. For example, in California, Governor Gavin Newsom issued an executive order barring law enforcement from enforcing evictions on tenants unable to pay rent due to lost income during the COVID-19 emergency.
• Even in regions with eviction moratoriums, landlords can still initiate eviction proceedings. However, the enforcement of these evictions may be delayed until a certain period after the COVID-19 emergency ends.
• It is important to notify your landlord in writing as soon as possible if you are unable to pay rent due to the pandemic. While you may not be required to provide documentation, maintaining clear communication is essential.
• In certain jurisdictions, tenants may have a grace period after the emergency to repay missed rent. For example, in Los Angeles, tenants impacted by the pandemic have up to 12 months to repay missed rent.
• It is illegal for landlords to engage in self-help evictions, such as changing locks or removing tenants' belongings, during the pandemic or otherwise. Only authorised entities, such as local sheriff's departments, can legally evict tenants.
• If you are asked to sign any documents related to your tenancy during this time, it is recommended to consult an attorney before doing so.
• While eviction proceedings may be delayed, tenants are generally still responsible for repaying any missed rent. However, there may be exceptions or rent relief programs available depending on the region.
• Some governments have introduced rent freezes or "rent holidays" to provide financial relief to tenants struggling due to COVID-19.

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Rent assistance programs

During the coronavirus pandemic, millions of people lost their jobs, and many more faced unemployment. This led to governments, organizations, and landlords implementing rent assistance programs and eviction moratoriums to help people stay housed.

Many governments, organizations, and landlords implemented rent assistance programs to help people struggling to pay rent during the coronavirus pandemic. Here are some examples:

• The Human Resource Development Council (HRDC) offered an emergency rental assistance program to help people facing sudden or unexpected loss of income.
• The Arizona Department of Housing offered rental assistance and eviction prevention programs.
• The Arkansas Department of Human Services provided rental assistance through the Northeast Arkansas Response and Recovery Fund.
• The City of Los Angeles prohibited evictions based on non-payment of rent during the COVID-19 emergency, and tenants had a grace period to repay missed rent.
• The UK government introduced emergency legislation to prevent tenant evictions during the coronavirus crisis.
• Governor Kate Brown of Oregon suspended eviction for non-payment of rent for 90 days.
• Governor Wanda Vasquez of Puerto Rico suspended all eviction orders and foreclosure proceedings and waived rent payments for tenants in government-owned housing.
• Governor Kay Ivey of Alabama ordered law enforcement to avoid displacing anyone from their residence during the public health emergency.
• Governor Gavin Newsom of California ordered a statewide ban on evictions, provided tenants notified their landlords in writing.
• Governor Doug Ducey of Arizona ordered a 120-day stay on eviction orders and launched a $5 million rental assistance fund.

Eviction Moratoriums and Rent Relief

In addition to rent assistance programs, some landlords and government entities offered eviction moratoriums and rent relief. For example, the Trump administration ordered a foreclosure moratorium on single-family home mortgages backed by the Federal Housing Administration. Fannie Mae and Freddie Mac, government-owned lenders, offered forbearance and payment relief to borrowers experiencing hardship.

While these programs provided temporary relief, it's important to note that tenants were generally still responsible for repaying missed rent after the emergency period ended.

Rent negotiations

The COVID-19 pandemic has forced landlords into complicated rent negotiations with their tenants. Depending on the tenant's situation, they may ask their landlord for relief. This can come in many forms, including:

• Paying reduced rent for a portion or all of the remaining lease term.
• Converting base rent into a percentage rent until business returns to normal.
• Asking for reduced operating expenses.
• Requesting a rent deferral, where payments are pushed out to a later date.
• Requesting rent abatement, or rent forgiveness, where the landlord forgoes rent collection entirely.

In some cases, tenants have taken a unilateral decision to suspend rent payments, paying just a single month's rent instead of a full quarter's rent. If the landlord accepts this, they waive their right to claim the remaining months' arrears.

It is important to note that leases generally do not contain provisions allowing reductions in rent, except where rent is calculated by turnover. Any changes to rent payment terms should be recorded in a side letter, rather than a deed of variation of a lease, as this is more time-consuming and may bind successors in title.

During the pandemic, some governments introduced measures to protect tenants, such as suspending evictions and providing rent relief. For example, the UK government introduced "rent holidays" for tenants facing financial difficulties due to COVID-19, and the US government offered payment relief to apartment building owners who granted rent respite to their tenants. However, it is unclear how courts will deal with cases of renters who have fallen behind on rent due to the pandemic.

Renters' rights

The coronavirus pandemic has made it difficult for many renters to keep up with their rent payments. While some renters have lost their jobs, others have had to take time off work and are not being paid or are receiving lower sick pay.

During the pandemic, renters' rights have included:

• Suspension of evictions and possession proceedings during the period of national emergency.
• A ban on landlords removing tenants' property from a unit, changing the locks, entering without notice, threatening to call immigration authorities, or intimidating tenants into leaving.
• An increase in the basic level of unemployment benefit by $20 per week.
• Modification of the Local Housing Allowance to cover the cost of 30% of rental properties in the local area.
• Rent freezes in some states.
• Rent relief for indebted apartment building owners who grant renters respite.
• Extended notice periods for landlords to serve tenants.
• Rent assistance programs in some areas.

What to Do If You Can't Pay Rent

If you are unable to pay rent, you should:

• Inform your landlord as soon as possible.
• Negotiate a repayment plan with your landlord.
• Seek financial relief from local organizations.
• Consult an attorney before signing anything from your landlord.

It is important to note that while renters cannot be evicted for non-payment of rent during the pandemic, they are still legally responsible for repaying missed rent after the emergency is over.

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