Chris Ragland has managed real estate-related businesses for the past 20 years. Ragland has exposure to all aspects of real estate, including brokerage, disposition, insurance, management, finance, and development, but his favorite role to play is investment mentor. An active investor and principal in several real estate-related ventures, Ragland continues his mentoring mission through his investment firm, Ragland. In addition to real estate, he serves on several nonprofit boards and is active in the startup community in Austin, Texas. NEXT STEPS The Government Relations Committee will meet at its next quarterly meeting to discuss ways we can take advantage of recent inroads created with representatives from Congresswoman Velazquez’ office. Real estate investors and housing providers are indeed often small businesses, and these connections with members of Congress will act as a solid foundation for discussions in providers need renters. Our mission is to provide a safe and healthy home for our customers, while operating a successful business for ourselves. If we work together, we can protect renters without placing an undue burden on housing providers. In the end, we can prevent costs from being passed to renters. Here’s how: 1 RENTAL ASSISTANCE SHOULD GO TO PAY RENTS. Housing providers should be able to apply for and receive rental payments directly. The renter should not be burdened with the process. 2 SIMPLIFY THE DOCUMENTATION AND APPLICATION PROCESS. The process to obtain rental assistance was and is incredibly burdensome. This process should be simplified and streamlined. 3 EXTEND RELIEF TO HOUSING PROVIDERS IN THE FORM OF TAX INCENTIVES. Housing providers cannot shoulder the entire cost burden. That is not an equitable solution. Maintenance, insurance, management—these are all services that must continue even during a pandemic. Tax incentives should be provided to housing providers facing an eviction moratorium. Housing providers are often small business owners doing their best on small margins. They provide a valuable service for the American people and should be supported in any way possible so that more housing stock can be preserved, expanded, and serviced properly for renters who deserve a safe and affordable place to call home.
THE REAL IMPACT OF THE EVICTION MORATORIUM Here are some of the “consequences” of the eviction moratoriums: 1 PUT SMALL BUSINESS OWNERS OUT OF BUSINESS. Perhaps the biggest impact of the eviction moratorium in the housing market was its direct hit on small business owners. The eviction moratorium caused many small business owners to rethink the business and exit. The homes in their portfolios were often acquired not by homeowners but by larger institutional hedge funds that do not improve the home but seek to maximize rents. Eviction moratoriums put small business owners out of business and increase costs for renters. 2 INCREASED ADMINISTRATIVE EXPENSES. For housing providers able to stay in business, it became more expensive to operate. Those expenses are repackaged and passed to the renter. Eviction moratoriums make it more difficult to provide housing, and they raise the cost for renters. 3 INCREASED REPAIR COSTS. For some renters, destroying property was an emotional outlet against housing providers during the pandemic. Now that housing providers are gaining access to these units again, they are incurring additional expenses to repair the unit. These costs are passed to the next renter. Eviction moratoriums remove the incentive of due care by the renter and raise the cost for renters. 4 COSTS OF REFINANCING AND RECAPITALIZING. For housing providers who needed to make repairs, pay late mortgages or other fees, or even cash out their equity to make ends meet, refinancing a mortgage on the property may have been the only choice. This leads to mortgage fees, higher interest rates, and additional carry costs that are passed on to the renter. Eviction moratoriums increase the costs for Housing Providers and raise the cost for renters.
OUR ASK IS SIMPLE Please engage with housing providers to create better ways to help renters in the future. Housing
20 | think realty magazine :: november – december 2022
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