With CARES Act Eviction Restrictions Lifted, What Do Landlords Need to Know Before Sending Notices to Vacate?

The Coronavirus Aid, Relief and Economic Security Act put a temporary halt to certain residential evictions from covered dwellings for non-payment of rent for 120 days, starting March 27. It also stopped landlords from issuing notices to vacate for non-payment of rent during that time. This period ended July 24.

Landlords for covered properties can now send notices to vacate for non-payment of rent, but they must give the tenant 30 days’ notice.

Evictions not based on non-payment of rent can proceed as normal. A 30-day notice is not required. Landlords will still have to comply with statutory notices, unless they were waived in the lease agreement.

Before sending a notice to vacate for non-payment, keep in mind:

• The notice should not include late fees which would normally have accrued during the 120-day period.
• Many state and local eviction restrictions have been lifted at this point, but check with the court where you will be filing.
• Landlords may experience delay in obtaining an eviction judgment, because courts are expecting a wave of eviction filings after Aug. 24.
• The U.S. Department of Housing and Urban Development (HUD) issued a notice July 1 extending the moratorium on evictions for all HUD-insured or HUD-held mortgages while under mortgage forbearance.
• Landlords should be aware that there could be additional tenant protections in place if they are getting relief from a multi-family mortgage.

There is still a lot of uncertainty regarding whether the president or Congress will renew or extend the eviction ban as part of the next coronavirus relief package. This past weekend, the president issued several executive orders related to coronavirus relief, but these do not ban evictions. One order instructs the Department of Health and Human Services and the Centers for Disease Control and Prevention to consider whether an additional eviction ban is needed. Phelps will continue to monitor this issue as it evolves and provide updates.

Please contact any member of Phelps’ Real Estate team if you have questions or need compliance advice and guidance.