Small Property Owners Hoping for Renter Debt Settlements

Small Property Owners Hoping for Renter Debt Settlements

CHICAGO (AP) – Small property owners are hopeful their renters will come to the table and settle their debts with the help of hundreds of millions of dollars in federal assistance for Illinois residents.

Last month’s COVID-19 relief package contained $25 billion in rental assistance. Of that, an estimated $845 million is available to Illinoisans struggling to make payments, more than double what the state offered last summer.

Illinois’ eviction moratorium is set to expire Saturday, but a similar federal measure is in effect until the end of January.

Property owners who rent out units most-commonly have one or two renters, a common misconception from companies who own large complexes. Should one of the two renters stop paying, it represents a real threat to the property owner’s cash flow that could result in foreclosure.

The National Multifamily Housing Council, which tracks rent payments in more than 11 million properties found 93.6% of renters it tracked had paid rent in November of last year, a 1.6 percentage point difference from the same month in 2019.

Those seeking rental assistance can contact the Illinois Housing Development Authority.

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