Most federal and state governments have rules in place to protect renters and protect them against eviction for non-payment.
Absentee homeowners are property owners who do not occupy one or more of the properties they own. Homes unoccupied by owners are recognized to be valuable leads on the market by real estate investors looking for motivated sellers.
Absentee homes are often rental properties, investment properties, or second homes. Many absentee homeowners live outside of the city, county, or state where their absentee property is located.
The Value of Absentee Homeowner Leads
Experienced real estate investors know that while not every absentee property owner is motivated to sell their property, they are more likely to sell rental and investment properties than their primary residence.
Here are the top reasons Absentee homeowners may be motivated to sell:
1.Rental and investment properties take effort and expense to maintain
2.Even properties managed by a rental agency may not be maintained adequatel
3.Many absentee homes are inherited through probate and are unwanted by the new owner
4.Absentee owners may have moved into a new house and are looking to sell their old home
5.Financial issues encourage absentee owners to sell their unwanted property for cash
How does COVID-19 Pandemic and various state or federal executive orders impact absentee owners?
2020 Renter Protections and Eviction Moratoriums:
According to the Federal Housing Finance Agency, “To help borrowers and renters who are at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend their single-family moratorium on foreclosures and evictions until at least August 31, 2020. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only.”
Homeowners with single-family rental properties financed through Federally subsidized programs are subject to this ban on tenant evictions. Many other states have enacted their own renter eviction moratoriums as well.
The financial hardships of the COVID-19 pandemic haven’t only impacted renters though, owners of rental properties have been affected too.
Many rental property owners have temporarily lowered their rent to help their tenants. That along with current renter protections, many absentee homeowners renting out their properties are facing reduced rental income and may be even more motivated to sell non-performing rental properties. This brings opportunity for real estate investors to offer much-needed cash for their absentee properties.