How Has COVID Changed the Eviction Process for Phoenix Landlords?
During the last year, the COVID-19 pandemic has forced property managers to evolve the way they deal with tenant interviews. Thanks to measures like the Coronavirus Aid, Relief and Economic Security (CARES) Act, property management companies and landlords have had to adjust how they process evictions. Early on, these policies changed faster than landlords could keep up with. No matter what happens or how regulations change, Service Star Realty is here to help. We will stay ahead of the latest news and eviction processes so that your properties can follow every applicable law and regulation.
COVID's Impact from Last Spring
Because of the CARES Act, renters were given new protections from getting evicted. However, these protections only go so far. Arizona Supreme Court Order 2020-163 makes it clear that you can still file your case. Then, the judge can choose to continue the case or let it proceed to judgment.
Once you file your case, the tenant can gather documentation and evidence to support a Centers for Disease Control and Prevention (CDC) declaration. You do not legally have to provide them with these forms. Landlords and property managers can send request packets to tenants so that tenants can provide evidence supporting their CDC declaration.
If a tenant does not provide the right documentation, then the eviction case can proceed normally. Likewise, the tenant's statement and evidence can be proven false during the hearing. If this happens, landlords and property managers can pursue a writ of restitution.
Basically, you can still evict tenants who do not pay their rent. You just have to make sure that you go about it the right way. Once we file the eviction papers, the tenant can respond by referencing the CDC order. If they do this, we will ask them to prove their case. The tenant must support their case, or we will be able to proceed with the eviction.
How Things Changed in December
Obviously, these rules have been challenging for landlords. With these CDC orders in place, landlords have had to cover the financial difference when tenants do not pay their rent. In December, a new stimulus measure changed this situation.
At the end of 2020, the new stimulus bill extended the CDC orders to January 31, 2021. Additionally, the stimulus added rental assistance for landlords who were struggling with nonpayment issues. Landlords were even allowed to apply for rental assistance directly from the issuing agencies. When the order was released, Arizona was expected to receive at least $5 million in extra rental aid.
Even if a tenant uses CDC orders to remain in their home, the court can still issue an eviction. The only difference is that the court will stay the writ of restitution. This is the actual lockout. While the legal eviction order can be issued, the physical eviction is held off until the CDC orders end.
On January 20, 2021, the CDC extended the eviction moratorium until March 31, 2021. Because COVID-19 cases are still high, the CDC wants to avoid having people evicted from their homes and placed in locations like shelters. Until this pandemic is resolved, this situation is likely to continue.
How Service Star Realty Protects Our Property Owners
At Service Star Realty, we work with our legal team to understand the evolving situation. We always follow federal laws, CDC orders and state laws, so our property owners are protected. Because of this, you do not have to worry. As long as you are working with us, we will take care of the ongoing changes so that you do not have to.
Thankfully, we have a secret weapon that has allowed us to have a very low default rate. We believe in communicating with tenants throughout the rental process. Rather than letting tenants skip their rental payments and face eviction, we are proactive. As soon as a tenant has a problem, we begin communicating with them. Our goal is to give them alternative options like payment plans so that they do not end up getting evicted.
Right now, Service Star Realty can boast some of the industry's best eviction numbers.
Because of our proactive approach, we got about 4 to 5 percent of our tenants onto payment plans in 2020. This means that they continued rent instead of defaulting and getting evicted.
Last year, less than 1 percent of our tenants defaulted on their payment plans.
Currently, we manage over 775 homes in the valley. This means our numbers are not a fluke. We deal with hundreds of properties, so we know what we are doing and how to avoid nonpayment issues.
These numbers are especially noteworthy when you compare them to the rest of the area. Between 2014 and 2018, Phoenix had an eviction rate of 6.2 percent. That means Phoenix's eviction rate was almost 2.5 higher than the eviction rate in the rest of the country.
In a survey in November, more than 10 percent of Arizonans were not current on their mortgage payments or rent. Out of this number, 40 percent believed that they would be kicked out of their homes within the next two months. Because of the extension of the eviction moratorium in December, these tenants received temporary breathing room.
Service Star Realty has managed to avoid eviction issues through communication and proactive planning. While more than 10 percent of tenants in Arizona are behind on their rent, only 4 to 5 percent of our tenants are on payment plans. Less than a percent of these tenants have defaulted.
Our payment plans and communication strategies have helped us achieve an exceptionally low eviction rate. Additionally, Service Star Realty leads the industry with top-notch screening. All of our tenants undergo thorough background checks, so they are less likely to encounter financial issues.
While we are sure the CDC orders and other legal requirements will evolve, we are confident that we can stay on top of each new development. If you do have any questions, please do not hesitate to reach out to us.
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