Attorney Derek Reed, a partner at Ehrlich, Petriello, Gudin, Plaza & Reed P.C., appeared on-air on Nov. 23 and in an article written for New Jersey 101.5 to explain why laws protecting tenants are passing financial burdens on to property owners.
“If you rent out a two-family home or a three-family home and you live in that home as well, if one tenant stops paying rent that’s 100 percent loss of your rental income,” Reed told 101.5, adding that small landlords are struggling to afford their own bills. “The fact that they have to house someone now, really since March without paying rent is creating a critical situation.”
Earlier this year, New Jersey Governor Phil Murphy issued an executive order that suspended evictions throughout the state for tenants who couldn’t pay because they were laid off during the pandemic or fell ill with COVID-19 and had to miss work. This effectively removed landlords’ ability to remove non-paying tenants and compelled them to house people without gaining the income they need to afford their own bills, mortgages, and property taxes.
“All of those costs continue to come due and yet the residents can continue to live there without paying rent during this pandemic,” Reed told 101.5. “It’s just very unfair and inequitable.”
Reed, who represents property owners, manager and developers, along with the Property Owners Association of New Jersey, also has said in the past that he feels a proposed bill to provide tenants 30 months after the end of the public health emergency to pay back rent that became due during the emergency is an unprecedented governmental burden being placed on housing providers with no corresponding state or federal assistance that will crush the multi-family housing ecosystem.
“What essentially that bill is doing is asking all landlords, in particular small landlords, to give nonpaying tenants an interest-free loan …” he told NJ Spotlight back in August. “They are asking landlords to shoulder the burden of carrying this debt for up to 30 months.”
If you are a landlord struggling during this time, Ehrlich, Petriello, Gudin, Plaza & Reed P.C. may be able to help.