Bloomberg Businessweek - USA (2020-05-18)

E C O N O M I C S

26

Edited by

Cristina Lindblad

RichUnclePennybags,theMonopolygamechar-

acterwhotipshistophatwithonehandandholds

tighttoa sackofcashwiththeother,maybethe

mostfamouslandlordinAmerica.Butthestereo-

typehasneverbeenmorewrong.Notonlyare

mostlandlordsnobetteroffthantheirtenants,

manymaycomeoutofthisrecessionworseoff.

“My tenantsthink I’mrich,”says Maribeth

Shields.“Theyhavebettercarsthanme,better

nails,andbettertaxrefunds.”Morethanhalfofthe

renters in the 27 low-income apartments she owns

in West Haven, Conn., and the vicinity aren’t paying,

and there’s nothing she can do about it. The state

banned evictions until July and allowed tenants hurt

by the pandemic to defer with no penalty.

But Shields can’t pay, either. Her profit last year

cametoonly$24,000,andnowshe’sbehindon

$1.2millioninmortgages.

LikemillionsofU.S.landlords,whoowelenders

more than $1 trillion combined, Shields sees her

fate tied to tenants now urgently focused on their

own self-preservation. In an Urban Institute survey

of renters carried out from March 25 to April 10,

almost half said they had experienced material

hardship in the previous month.

Thenexthousingcrisisis here,andthistime,

it’saboutrentals.AcrosstheU.S.,landlordsand

tenants are wrangling over next month’s rent

while an approaching avalanche of evictions

threatens to bury both sides. SHIELDS: PHOTOGRAPH BY JILLIAN FREYER FOR BLOOMBERG BUSINESSWEEK. LEE: PHOTOGRAPH BY AMY LI FOR BLOOMBERG BUSINESSWEEK

BloombergBusinessweek May 18, 2020

● Shields outside

one of her rental units

in West Haven

The Next Housing

Crisis Is Here

● Bans on evictions and rent

strikes could trigger a wave of

mortgage defaults by landlords