If we stopped relief to everyone, tenants would stop paying, rents would crater, and landlord would be ruined much moreso than tenants, it's just the nature of investment.
If we stopped relief to everyone, tenants would stop paying, rents would crater, and landlord would be ruined much moreso than tenants, it's just the nature of investment.
Rent is revenue. Investment is based on the value of the underlying asset. They are not the same thing.
Our society has always assumed that the investment has a risk element but the rent is ensured by law and there are remedies if it is not paid -- remedies which are now being suspended for tenants paying landlords, but not for landlords paying their mortgages.
If you have a tenant, they can’t pay, then they leave and you can’t find another renter for a year, you’ve made a bad investment even though your property value hasn’t changed.
At first these rent forgiveness measures were supposed to last a few months. Now we are nearly in the 10th month of the pandemic and these measures are being renewed. There are tenants who have not paid rent since March. Most landlords would rather have no tenants at all, than have tenants who do not pay rent for almost a year yet force their landlords to continue to provide for them by paying for maintenance, and insurance, and property tax, and the mortgages.
It seems more like “well nobody is going to be able to rent it anyways, so we might as well keep the businesses alive so that recovery can happen”. If those 90% of businesses all went under, then there would be nobody left to pay any rent even after a recovery starts to happen. Creating a law that advantages the renters prevents the landlords from screwing each other, and the entire market, by putting the companies out of business. Those companies need to survive so that the market can bounce back more quickly. And the landlords would get screwed either way.
I do also think that mortgages should be paused, but that’s secondary in importance, in my opinion. Sorry you got downvoted, I think your opinion is also valid, and this does really suck for landlords too.