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Mediation for Struggling Landlords and Tenants

Updated: May 11, 2021

An estimated 10 million renters were behind on their rent and at risk of eviction in the middle of January 2021, according to the Census Bureau. And an estimated 16 million renters had little to no confidence they could pay rent in February.

Depending on who you listen to American's owe between $50 to $70+billion dollars in unpaid back rent. According to Bob Pinnegar, president and CEO of the National Apartment Association, an industry group representing property owners, residents, owners and policymakers want the same thing: for tenants to stay in their homes. But, he said, eviction moratoriums don't accomplish that because they create the illusion that everything is stable when, in fact, "they are far from it." Renters will still owe back rent once the moratorium is lifted. And, in the meantime, landlords are stuck figuring out how to cover their monthly expenses.

Further, the landlords hit the hardest are naturally the ones with a smaller number of units and/or low income tenants. These landlords are more likely to have their life savings in their rentals, as such the loss of rent is a much bigger problem than for larger operators. To make matters worse, when a landlord is not getting the rents they are due, they may not be able to afford necessary repairs and improvements, negatively effecting the rental market overall, reducing the amount they may be able to charge for future rent.

Landlords don't want to evict tenants, and tenants don't want to be evicted. And as a general principle, most people want to pay their debts. And yet here we are with both landlords and tenants losing money, their housing and possibly their ability to obtain and sustain housing in the future.

For Rent

Landlords and Tenants should work together

-This is an unprecedented circumstance and tenants may be stretched too thin through no fault of their own. Covid-19 has made landlords acutely aware of how much they need their tenants and vice versa. Landlords can help their tenants by pointing them in the direction of available resources, and negotiating rent reductions or repayment plans. While tenants may have been able to float rent for a time because of savings or their federal stimulus check, things may become more dire over time, even post-pandemic as people put their lives back together.

Blend Mediation can help you reach agreements together, saving you time, money, and stress as well as salvaging relationships. We would love to help you.

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