What is missing from the MN tenant advocates’ demands below is the cost of operating rental housing includes far more than mortgage expenses. There are taxes, which are mention, but not asked to be forgiven by the tenant groups, insurance, maintenance, management costs, utilities
I’m sure most of the proponents of this are still expecting to still be able to take a warm shower, which is not possible it the owner can’t pay water and utilities as well as other “luxuries” like having the trash emptied weekly, the sidewalks shoveled, the lawns mowed, to have someone answer their calls, and have someone repair what breaks, etc.
In many cases the mortgage cost is less than half of the operating costs.
And why are property taxes the sacred cow? If governments are supporting the nonpayment of rent, then they should also support not receiving property tax and other payments such as sewer, water, municipal electricity, garbage pick up fees, etc. Tenants and municipalities alike should not expect properties to be maintained or improved if they sanction rent abatement.
The world is changing. If we are not at the forefront of these changes, many folks in our industry will be bankrupted.
While today’s tenants benefit from such actions in the short term, they and future tenants will pay a large price in the unavailability of housing and the higher costs of what is available as seen in the years post-2008.
Subject: Letter to residential landlord
Some tenants organizations in Minnesota prepared the following letter for their members to send to their landlords.
I think you might enjoy reading it. Dale
Dale A. Whitman Professor of Law Emeritus, University of Missouri
To Whom It May Concern:
We hope you are all staying healthy during this time. We are reaching out regarding our rent for the upcoming months. A State of Emergency has been declared in the United States of America and the State of Minnesota due to the COVID-19 global pandemic. As a household, we have lost income due to forced work closure, reduced hours, and insufficient or unavailable unemployment insurance.
We are emailing you to inform you that though we had been able to pay rent on April 1st due to careful planning, we will be unable to pay rent on May 1st. Until we are able to leave our home and return to our jobs, which is impossible under the stay at home order, we are all holding on by the skin of our teeth. In addition, we are unable to accrue the May rent as a debt. Due to our inability to work, we are all facing limited resources and increased financial instability for the time being. We love this house, and we’ve enjoyed being your tenants. We would like to continue living here long term.
We understand that our ability to pay rent will affect your ability to cover your expenses as well; likely, our rent at least covers the mortgage payment and taxes on this house. Having a stable home is a critical part of the healthcare infrastructure that protects us all from illness. It is our collective responsibility to stop the spread of COVID-19 during this time of emergency, in order to keep ourselves and our communities safe.
We believe that mortgage and rent moratoriums at the state or national level are real possibilities at this moment, and we hope that our government steps in to support you and us, but again: we cannot take on this rent as debt. We need a rent freeze, and we support you in seeking a freeze on your mortgage. Some people in our networks are already receiving this support from their landlords.
The social and economic effects of the global pandemic are predicted to last over a year. We encourage you to join us in contacting elected officials to call for an immediate Universal Suspension of Mortgage and Rent Payments.
Representative Ilhan Omar (612) xxx-xxxx
Governor Tim Walz (651) xxx-xxxx
Senator Tina Smith (651) xxx-xxxx
Senator Amy Klobuchar (202) xxx-xxxx
This is a very stressful and uncertain time, and we are all trying to do our best to stay healthy and afloat. Thank you for your support and understanding,
Tenant names removed
