Since the corona virus epidemic is causing unprecedented job losses across the country, one of the first problems for many families will be how to pay rent or mortgage next month. The poorest 20% of American households – including many workers in low-income sectors such as retail services and restaurants – spent more than half of their income on housing costs, as well as the economic boom. These families have little or no savings to cope with the sudden loss of income from this epidemic. Assuming the court will open on May 18, the rent non-payment case, which begins today in the Washington Supreme Court, may be set in mid-July or later. In most cases of non-payment in this area, which was not refused because the tenant paid the court date, the parties settled the court day through a compensation agreement. For a payment agreement to be successful, the landlord and tenant must be able to maintain their financial position for the duration of the agreement. This is possible if the tenant defaults on paying the rent for two or three months.

In order to prevent tenants from losing their homes, more and more cities and states have temporarily stopped moving. In other words, the landlord cannot evict the tenant who leaves the rent. This may result in an increase in lease time, and layoffs may cause greater damage to the local economy. However, a more effective way to help tenants is to provide support to small businesses and local governments while saving money to make up for lost income.

Rent has a significant multiplier effect on the local economy

Rental checks not only facilitate fat cat owners, but also contribute to the basic public services and wages of other workers. If many families are unable to pay rent at the same time, there will be an economic impact on the entire local economy. The first person to pay a monthly check for rent was not the landlord but the municipality. Real estate taxes are more important than mortgages. If the landlord is in arrears with real estate taxes and mortgages, municipal applications replace the borrower’s complaints.

Cities and counties rely on real estate taxes for all voters (individual homeowners and homeowners, offices and other non-residential properties) to pay for public services. The current crisis is allowing local governments to defer property tax payments, but Pandemic has already focused on local government budgets. The city is in charge of health care and emergency services and now needs money to feed children who have closed public schools and care for the elderly and vulnerable.

And just as individual homeowners worry about repaying their mortgages when their income is low, when rent controls come out, landlords are not allowed to pay every month. This is especially dangerous for the public who owns a small apartment building. Mortgage loans, property taxes and insurance account for more than half of property income. In response to the current crisis, the Federal Housing Financial Services Agency has contacted Fannie Mae and Freddie Mac to allow affected borrowers to postpone mortgage payments for one year. However, the federal government has little influence on lenders who provide mortgages for apartment buildings at market rates, and lenders account for the majority of US housing rents. The landlord is also responsible for paying water and sewerage fees for the building, waste and recycling charges, or for gas and electricity supplies in the building. These are important services that should continue to operate even during an epidemic.

In addition, most of the costs incurred by the owner are the salaries of other employees. Efforts are needed to keep the apartment building working properly, safe and clean, and to take care of the house. Large buildings usually have fields, but smaller buildings also require local contractors such as plumber and electrician. As rental payments decrease, property owners today are eliminating the need for maintenance. This means better unemployment for maintenance workers and housing for all building criminals.

For most homeowners, some are better than rent

In the midst of a major economic downturn, landlords have enough financial power to replace existing criminals instead. Vacancy visitors can’t easily see or apply for an apartment, creating social distancing. Empty units do not bring rental income to build apartments for new criminals like cleaning, painting and marketing. Some unreliable landlords have used files to reimburse criminals for extra costs or have legal implications. However, responsible landlords will accept the costs and uncertainties incurred by trusted criminals rather than negotiating or paying partly for a lower rent. It is better to pay any part of the rent without delaying the eviction of the tenant. Otherwise, you may have more responsibility to repay in the future. It is best if the tenant continues to pay partial rent. Otherwise, you may have a big promise to return them in the future.

It requires what it takes to get housing, land and capacity

If tenants are unable to pay landlords and landlords are unable to pay property, property and property taxes, this reversal will affect the local climate. State and federal cities readily see the importance of protecting families who are losing money in an unacceptable way. Keeping people inside is now important for public health purposes. Immediate financial assistance is needed from the federal government to protect the poorest families while minimizing economic losses in the region. Three types of applications are required.

Send checks to people. Providing immediate financial assistance to all tenants and real estate agents allows them to continue paying for essential services, including housing, retail and health.

We offer low-cost loans to support small businesses, including asset management and maintenance companies. Companies will have more equipment and will continue to be able to pay employees and buy goods and services from other companies.

Provide flexible grants to state and local governments. From public health to food security and transportation, cities, towns and countries in crisis are at a crossroads. The main sources of income (property tax, labor tax and hospitality) are reduced as businesses close and families are ordered to survive.

Displacement may look good on paper, but there is a risk that the epidemic will unexpectedly increase local economic impact. Instead, the federal government should act as a last resort through loans, grants and direct cash payments. People, businesses, and communities in the United States now need help.