Why the Eviction Moratorium is a Double-Edged Sword for Multifamily

Updated: Sep 19, 2021



In September of 2020, the CDC imposed a federal moratorium on residential evictions temporarily nationwide for nonpayment of rent. Due to the pandemic, many were put out of work and the government needed to find a way to keep not only the public but the economy, stable. Now in 2021, the vaccines have been rolled out, and the world looks to be on an uptick back to normalcy; although, the looming uncertainty of the Delta variant, and its spread, is also a part of the equation.


The eviction moratorium was set to expire on July 31st, 2021 and the Supreme Court ruled that the eviction moratorium would come to an end officially in August. While the moratorium has been ended on a federal level, many state and local level eviction bans remain in place. Depending on your location, however, tenants can and are being evicted.


While many landlords and real estate trade groups advocated for the moratorium to end, this could be a double-edged sword for multifamily, as there are also hidden disadvantages to the conclusion of this federal mandate.

The Benefit


The obvious benefit is that landlord is now able to evict nonpaying. Many landlords were unable to evict nonpaying tenants, which led to loss of cashflow for their assets. However, some nonpaying tenants were able to take advantage of the system. For example, we had a property at a very high occupancy rate, yet the tenants were behind on rent. When we threatened to start the eviction process, many tenants went quic