Long term rental deferment has consequences for more than just the landlord and tenant. There are unintended consequences that have effects on everyone in our society. More practical solutions need to be explored in order to help the entire community.
Rent does more than just line the pockets of the landlord. A large majority of rental payments go back into upkeep for properties. Approximately 39 cents of every dollar go toward paying the property’s mortgage. More than half of housing providers are backed by private lenders. This puts the owners and, by extension, the residents in a tight spot when the rent is due.
Only 9 cents of every dollar is returned to the owner. Mom and pop landlords own nearly half the nation’s housing units. According to Nareit, an association of companies that own or finance real estate investments, nearly $800 billion of pension, endowment, and foundation funds are invested in commercial and residential real estate.