COVID-19

Are we paying rent?

Sabri Ben-Achour Apr 16, 2020
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An apartment building in Brooklyn, New York on March 25. Bryan R. Smith/AFP via Getty Images
COVID-19

Are we paying rent?

Sabri Ben-Achour Apr 16, 2020
An apartment building in Brooklyn, New York on March 25. Bryan R. Smith/AFP via Getty Images
HTML EMBED:
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Like 22 million other Americans, dance instructor and choreographer Anthony Davidson has suddenly found himself without a job. He didn’t pay April rent and he isn’t going to pay May’s.

“I need to save every penny I can, now, because I don’t know how long it will last or how long it will be until I have a paycheck again,” Davidson said.

He’s getting unemployment, but he can either use it to pay rent or pay for … everything else.

“My highest priority is medical insurance, because you never know what is going to happen,” he said.

At the beginning of April, it looked like 31% of apartment tenants had not paid rent on time. New data from the National Multifamily Housing Council show that some have since paid late or partially, but 16% haven’t paid any rent — still higher than usual. The numbers may be higher for commercial tenants and in some cities.

“Commercial tenants — a lot of them are not paying rent,” said Frank Ricci, director of government affairs for a landlord advocacy group the Rent Stabilization Association. Some landlords are working with tenants, Ricci added, and evictions have been paused in places like New York. But, he noted, landlords face expenses, too.

“I don’t think anyone wants to get to that decision point of making a choice between paying your property tax, versus paying a mortgage, versus paying a necessary repair. It’s an impossible choice,” Ricci said.

“Someone has got to foot the bill here and now the game is who’s best able to dance and avoid the problem and everyone’s trying to get themselves off the hook here,” Elliot Eisenberg, a real estate economist with economic consultancy Graphs and Laughs, told “Marketplace.”

Some economists warn that unpaid rents — and, in turn, unpaid mortgages — could further strain the financial system.

“In a normal recession, the problem is bad enough,” Eisenberg said. “But here, the speed at which the job losses have come has been so profound [that] these nonpayments become an immense issue because you’re losing large chunks of revenue.”

COVID-19 Economy FAQs

What’s the latest on the extra COVID-19 unemployment benefits?

As of now, those $600-a-week payments will stop at the end of July. For many, unemployment payments have been a lifeline, but one that is about to end, if nothing changes. The debate over whether or not to extend these benefits continues among lawmakers.

With a spike in the number of COVID-19 cases, are restaurants and bars shutting back down?

The latest jobs report shows that 4.8 million Americans went back to work in June. More than 30% of those job gains were from bars and restaurants. But those industries are in trouble again. For example, because of the steep rise in COVID-19 cases in Texas, Gov. Greg Abbott, a Republican, increased restrictions on restaurant capacities and closed bars. It’s created a logistical nightmare.

Which businesses got Paycheck Protection Program loans?

The numbers are in — well, at least in part. The federal government has released the names of companies that received loans of $150,000 or more through the Paycheck Protection Program.

Some of the companies people are surprised got loans include Kanye West’s fashion line, Yeezy, TGI Fridays and P.F. Chang’s. The companies you might not recognize, particularly some smaller businesses, were able to hire back staff or partially reopen thanks to the loans.

You can find answers to more questions on unemployment benefits and COVID-19 here.

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