Are you a landlord or rental property owner in New Jersey? Have you suffered lost rental income from the eviction moratorium in New Jersey?
In New Jersey, soon after the COVID-19 pandemic was officially announced, eviction moratoriums were put in place in the State of New Jersey, including some of its major cities, such as: Newark, Jersey City, Paterson, Elizabeth, Edison, Trenton.
For almost two years now, New Jersey landlords, investment property owners, rental property owners, and New Jersey real estate property management companies have suffered financial harm from some residential and apartment tenants not paying rent during COVID.
New Jersey politicians, health professionals, and other state and federal authorities in NJ touted these measures were necessary in the name of public safety. The pandemic measures were thought to take an estimated two weeks to level the curve, and that New Jersey residents would all be back to normal life soon.
Again, that was almost two years ago. No one involved in New Jersey real estate thought this health crisis and financial crisis for New Jersey landlords would be continuing this long.
New Jersey Landlords Forced to Comply with Unfair Eviction Moratoriums
During this entire pandemic, New Jersey residential rental property professionals, including: landlords, investment property owners, real estate investors, and property management firms were forced to comply with the mandated tenant eviction moratoriums by all levels of government in the State of New Jersey.
Landlords in New Jersey were essentially being ignored, while suffering economic harm and financial damages, each and every month, from tenants that decided not to pay rent, because they could not be evicted during the New Jersey moratorium.
This caused some NJ landlords to default on their investment property mortgages, due to lost rental income and cash flow for some of their properties.
New Jersey Rental Property Owners Financially Harmed by the Illegal Eviction Moratorium
In New Jersey, and around the nation, the Center for Disease Control (CDC) issued an eviction moratorium that was backed by politicians across the country.
Landlords in New Jersey were immediately thrown into a potential financial hole of lost rents when some tenants stopped paying rent, with no recourse of eviction.
After a very long wait, New Jersey rental property owners had some financial relief on the horizon.
The Supreme Court of the United States finally ruled that the CDC, all on its own, had no authority to restrict rental property owners from operating their investment property within clearly established landlord tenant New Jersey rental laws.
Unfortunately for New Jersey rental property owners, this ruling came well after the fact of major financial real estate rental income losses suffered by hundreds of thousands of rental property owners, some of whom lost their properties and even had to file for bankruptcy.
New Jersey Landlord Rights During COVID
While some New Jersey tenants, including those in Newark, Jersey City, Paterson, Elizabeth, Edison, Trenton, responsibly used their government stimulus checks to pay rent, or at least what they could, many others simply did not.
Not all tenants working in essential New Jersey jobs during the initial phases of the pandemic paid rent either. Even after New Jersey began relaxing COVID mandates, and many people returned to work, there was still a certain percentage of tenant rentals that still didn’t pay their rent to New Jersey landlords.
Despite news of this situation spreading and instances of some tenants bragging about not paying rent, New Jersey politicians ignored the pleas of landlords and just shrugged their shoulders and told rental property owners to be patient. In fact, as the pandemic continued, these same New Jersey politicians actually extended the eviction moratorium, in some cases, multiple times.
Bottom line? New Jersey landlords got shafted out of legally owed monthly rents by tenants who took advantage of the system not to pay rent.
Eviction Moratorium in New Jersey Continues to Deliver Financial Devastation to Landlords
Costs and financial consequences to rental property owners over the last two years has been astronomical.
For many honest NJ rental property owners and managers, the financial devastation was equivalent to, or even worse than, the Great Recession in 2008 to 2010 that wreaked havoc on real estate rental portfolios around New Jersey.
Now in 2022, with some New Jersey eviction moratoriums expiring or have expired, the pain will continue for some rental property owners since in many New Jersey jurisdictions, landlords must still must take legal action to evict tenants that are behind on rents.
As many rental landlords and owners already knew, the eviction moratoriums across the nation completely ignored landlord property rights in NJ.
Meanwhile, rental property owners in New Jersey are still on the hook for past due mortgage payments, property insurance, property taxes, and any repairs the property required, regardless if tenants paid rent or not.
How is this fair to tax paying landlords in New Jersey?
Adding insult to injury, videos and news reports showed groups of tenants in NJ stepping out in protest declaring themselves free rent, even after many landlords voluntarily offered very generous rental discounts in an empathetic gesture to help ease everyone’s mutual financial pain due to COVID.
Of course, serious repairs and maintenance needed on New Jersey rental properties still had to be addressed, which caused more financial problems given all the COVID pandemic social distancing and scheduling issues between tenants and contractors.
With limited local New Jersey aid and eviction courts still packed with cases, it continues to be a very long and exhausting road for rental property owners who simply want to financially recover from the fallout of the COVID pandemic and move forward.
SBA EIDL Financial Relief for Landlords in New Jersey
New Jersey SBA loans offered through the Economic Injury Disaster Loan (EIDL) program is one of the main ways landlords in New Jersey can get financial relief.
If a New Jersey landlord had already applied for an EIDL loan prior to 12/31/21, they are still eligible to apply for loan reconsideration if one of their real estate entities was declined by the SBA.
Alternatively, if the New Jersey real estate entity already received EIDL funds, landlords may apply for a loan modification increase request to obtain more low interest funds.
Currently set at 3.75% APR, 30 year fixed rate loan, with no payments for 24 months.
Very cheap money to help New Jersey landlords recover and get financial assistance and relief, to offset major losses to cash-flow from unpaid rents due to the eviction moratoriums throughout New Jersey.
Summary and Conclusion for New Jersey Eviction Moratorium: Don’t Give Up! There is Financial Relief for New Jersey Landlords
For New Jersey investment and rental property owners harmed by COVID, Disaster Loan Advisors may be able to assist working with landlords in New Jersey that are eligible for the SBA EIDL program.
Does Your New Jersey Rental Property Business Need an Increase or Loan Modification to Your Existing SBA EIDL Loan?
Did you already receive a New Jersey SBA EIDL loan for your New Jersey Rental Properties?
We can assist Landlords in requesting additional SBA EIDL loan funds through the increase request and loan modification process in New Jersey.
Schedule Your Free Disaster Loan Consultation to see if we may be able to help your Rental Property business with the SBA Increase Request Process in New Jersey.
Was Your New Jersey Rental Property SBA EIDL Loan Denied?
Has your New Jersey SBA EIDL loan been denied for your NJ business?
We can assist you in filing for an SBA EIDL loan reconsideration appeal for your Rental Property entities in New Jersey.
Schedule Your Free Disaster Loan Consultation to see if we may be able to help your Rental Property business with the SBA Loan Reconsideration Process in New Jersey.
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