While you’ve likely heard that the CDC Eviction Moratorium expires at the end of this month, Governor Northam included emergency legislation in the Virginia Budget last week that significantly impacts the eviction process in our state. Effective immediately the following regulations are now in place through at least June 30, 2021.
- The initial notice given a tenant regarding late rent must include a 14-day notice to pay rather than a 5-day notice to pay before any legal action can begin.
- Along with the standard notice regarding late rent, tenants must also be provided information regarding their rights and information regarding resources available to them including the Virginia Rent and Mortgage Relief Program.
- If tenants have not applied for the Virginia Rent and Mortgage Relief Program, landlords must apply on their behalf.
- For landlords owning more than four properties, tenants must also be offered a 6-month repayment plan as outlined in the VRLTA.
As these eviction constraints are now in place in Virginia, and as additional constraints are expected at the federal level, we are taking the following actions:
- We have modified our Qualifying Criteria for Rental Applications to reduce the risk of late rent payments to our landlords. We’ve raised the minimum credit score required to qualify for one of our managed properties. We’ve also extended the review period from 2 to 5 years for any landlord filed legal action.
- We are recommending that our landlords keep reserve funds in the amount equal to six months of rental payments. As the eviction process for non-payment of rent can now take 3-6 months to complete, it is imperative that our landlords be prepared in case their tenants are impacted by COVID and unable to pay rent.
If you have any specific questions regarding how we are handling late payments from tenants, please contact Michele Odems at 703-963-6540.