California (and the rest of the country) is on its way into a massive rent crisis. Eventually, the thousands and thousands of overdue rent payments that are currently on hold because of Covid will come due.
Nationwide, one in four Americans report someone in their household losing income, or having lost their jobs themselves, during the pandemic. Here in the Bay Area, the unemployment rate hit 7% in December 2020 (compared to 2.7% in January). That means scores of people have struggled to pay their rent at some point over the past year. As a whole, Americans may owe up to $70 billion in back rent.
Lawmakers have made moves throughout the pandemic to ensure people can’t be evicted because of late rent, but they have refused to respond to calls by tenants to #CancelRent altogether. California Governor Gavin Newsom recently extended the state eviction moratorium until the end of June. But what happens when the end of June comes? Then 15 months of back rent will be due.
We caught up with Jacqueline Ravenscroft, a partner at Bay Area tenants’ rights firm Tobener Ravenscroft, to get all of your questions answered about what to do if you can’t pay rent — now or later.
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What should I do if I can‘t pay rent right now?
Don’t panic, because you’re not going to lose your home: It’s illegal to evict you for failure to pay under California’s current law. The second step is to write your landlord a letter outlining the situation as clearly as possible. Explain that you’ve been impacted by the pandemic (directly or indirectly).
“You need to get it in writing that you’re experiencing financial difficulty related to Covid-19. Not necessarily that you got it yourself, but maybe you lost your job, you had hours reduced, you had higher medical expenses because of your own exposure or a family member’s. Those are all acceptable. Keep records of those things just in case, but in most cities or counties in the Bay Area, you’re not required to give that upfront to your landlord — just explaining your situation is enough,” says Ravenscroft.
Should I pay partial rent if I can?
The good news is that the moratorium prevents evictions. The bad news is that it doesn’t cancel back rent — so if you can, you should still pay some of your rent, because as of right now, you’ll owe it later. Under current law, to avoid eviction in July, renters will need to pay 25% of back rent owed from September through June by June 30, when California’s current moratorium ends. If you pay 25%, the other 75% will become debt (so you’ll still owe it, but won’t be evicted from your home).
There’s a chance you might be able to negotiate with your landlord to bring your rent down to what you can pay (so you won’t owe after the pandemic) but it’s not guaranteed.
“Landlords are negotiating rent in some instances. See if they will reduce your rent temporarily to the amount you can pay. If you agree to pay that, it’s a benefit to them — you have the right to withhold it all, and not get evicted. So if you agree to pay something, your landlord might be willing to forgive the difference,” says Ravenscroft.
What if my landlord tries to evict me anyway?
Okay, so you wrote your landlord a letter but you’re still getting an eviction notice. Now what? Your landlord is breaking the law, and Ravenscroft says you should:
“Inform the landlord in writing that their actions are illegal under various laws: city, county, state, and even federal. Even before the pandemic, it was illegal in California for landlords to self-evict. They can’t just put your belongings outside and forcibly evict you. They need to go through a court process, and that’s paused right now. So your landlord can huff and puff as much as they want about how they’re going to kick you out, but that really has no teeth in this climate.”
Will I owe back rent after the moratorium?
Unfortunately, it’s very possible. “There’s really not a good solution for this right now. I think there’s momentum for renter’s assistance, as seen by the last stimulus packages that were passed. But it’s really unclear how that money will be used and when it will actually reach folks,” says Ravenscroft.
If your income is at or below 80% of your region’s Area Median Income (AMI), you or your landlord can apply for rental assistance through the state, which California just opened up applications for this week. Rental assistance will cover up to 80% of your back rent; the program has $2.6 billion available in total.
Some cities, like Oakland, have chosen to pass ordinances that prohibit eviction over back rent owed even after the pandemic ends. Oakland has its own eviction moratorium which will last until 60 days after the region’s state of emergency is lifted (so, the end of the pandemic), and at that point, landlords won’t be able to evict for failure to pay back rent during the pandemic. But that doesn’t mean the rent is canceled — just that you won’t be able to be evicted. Your landlord could still choose to take you to court for those funds, but you’d be able to stay in your home.
In short, based on what we know now, once we hit the end of the moratorium (whenever that is), we’re going to hit a “rent cliff” — months of back rent owed, which will have to be paid back or become debt. There are active campaigns to get rent canceled entirely, but none have been successful yet.
Can I be evicted for other reasons besides failure to pay?
Does the eviction moratorium apply to all evictions, whether or not you pay rent? Like a true lawyer, Ravenscroft said, “It depends”—but probably yes. Most cities have prohibited evictions unless there is an immediate threat to the health and safety of others, like a tenant that threatens other people. All other evictions, especially “no-fault” evictions like an owner move-in or building remodels, are prohibited. Ravenscroft encouraged tenants to look up their municipality’s specific rules, but said generally speaking it’s quite difficult to evict right now.
“In the most protected regions, you can’t evict unless a tenant is a threat to themselves or others. So that means somebody threatened to kill their neighbors. Have people tried to twist that and say smoking in a nonsmoking building is a threat to others? Yeah, of course. So I wouldn’t tell people they are completely protected. But it’s challenging to evict,” she says.
Should I negotiate with my landlord even if I can pay?
Even if you can pay your rent right now, Ravenscroft said it’s worth having a conversation with your landlord about getting your rent down. The Bay Area is a renters’ market right now, with rents down 23%. There’s no harm in asking whether you can get a lower rate, especially if you live in an area that’s particularly impacted by shelter-in-place.
“Those big high rises in SOMA and the South Bay, newer buildings? They have crazy high vacancy rates right now and they’re offering way cheaper rents than people who have lived there forever are paying. So in those areas, a landlord might be able to negotiate just to keep a tenant,” she said.
Where can I get help?
There are plenty of resources for renters during the crisis. If you need some help navigating rental negotiations or learning your rights, try reaching out to a tenants rights group like:
- The San Francisco Tenants Union
- The Housing Rights Committee of San Francisco
- Bay Area Legal Aid
- Tenants Together
Most tenants’ rights groups can offer you advice but aren’t able to actually represent you legally. If you receive a written eviction notice or court documents, you should reach out to a law firm like Ravenscroft’s or another tenants’ rights firm, many of whom can help mediate with landlords.
Remember your rights — now and after the pandemic — and don’t be afraid to speak up.
