Many renters and property owners are hoping Congress will reach an agreement on another stimulus bill. With no stimulus deal in place yet, millions of Americans will likely miss their August rent payments.
Landlords are bracing for a wave of rent defaults as eviction moratoriums are being lifted. Federal relief loans have dried up for renters, but property owners still have mortgages to pay. Real estate expert and Club Wealth CEO Michael Hellickson says we've yet to see a big sell-off of properties because they still have equity in them. So far, most property owners have been able to weather the pandemic and economic shutdown.
“The good news for landlords is as we get into markets that shift like we are likely to see here in the next 12 to 18 months, rents are likely to go up, not down. Even though, there will be tenants that will not be able to make their payments,” Hellickson said.
He adds those tenants will likely have to downsize. So don't be surprised if in the next year, more Americans move into smaller homes and apartments.