This is a preview of one of the articles in the new KROST Quarterly Real Estate Issue, titled “Challenges Facing the Real Estate Industry in the Wake of COVID & the Election” by So Sum Lee
It’s no question that the economy as a whole was (and continues to be) stressed by the COVID-19 pandemic. Now with the coming election, more uncertainties could be on the horizon. 2020 is shaping up to be one of the most unique and challenging times in recent history. Unfortunately, the real estate industry was not spared this year with accumulating hurdles due to new regulations, changes in consumer demands, and state-specific legislation.
Temporary Eviction Ban Puts Cashflow Strain on California Landlords
In August, Governor Newsom signed legislation to protect tenants from eviction and property owners from foreclosure due to unpaid rent or mortgage as a result of hardships faced related to COVID-19. While the new law brings welcome relief to tenants, landlords are now faced with resulting cashflow issues that extend into 2021 because of the statewide ban on evictions. Specifically, no tenant can be evicted before February 1, 2021, for rent owed in the event of COVID-19 related financial constraints accrued between March 4 – August 31, 2020, as long as the tenant provides a declaration of said hardship in accordance with the legislation. Additionally, tenants who are unable to pay rent between September 1, 2020 – January 31, 2021, must pay at least 25 percent of rent due to avoid eviction… Continue here »
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KROST Quarterly is a digital publication that highlights some of the hot topics in the accounting and finance industry. Volume 3, Issue 3 highlights some of the hot topics in real estate including 1031 Exchange, Cost Segregation, Opportunity Zones, Qualified Improvement Property, Delaware Statutory Trusts, and Green Building Tax Incentives.
About the Author
So Sum Lee, CPA, Principal
Tax, Real Estate, Technology, Hospitality
So Sum Lee, CPA is a Tax Principal at KROST. So Sum has over 18 years of experience in public accounting and has a wide range of experience in Taxation, as well as servicing high-net-worth clients. So Sum’s area of expertise includes industries such as wholesale, Real Estate investments, and Restaurants. » Full Bio