The Plaintiff: Tom the Landlord, who is seeking to evict his tenant over $850 of unpaid rent.
The Plaintiff: Tom the Landlord, who is seeking to evict his tenant over $850 of unpaid rent.

The Defendant: Vera the Tenant, who admits falling behind on rent, but says she shouldn’t
The Defendant: Vera the Tenant, who admits falling behind on rent, but says she shouldn’t

lose her home for it.
lose her home for it.

We’ll hear their stories and see what the judge has to say on Eviction Court: Two Cents edition!
We’ll hear their stories and see what the judge has to say on Eviction Court: Two Cents edition!

A landlord can’t just kick a tenant out on a whim…
A landlord can’t just kick a tenant out on a whim…

They need to get the OK from the state, and the way they do that is through a civil process
They need to get the OK from the state, and the way they do that is through a civil process

known as eviction, or “summary ejection.”
known as eviction, or “summary ejection.”

A landmark study by Princeton sociologist Matthew Desmond estimated that there are almost
A landmark study by Princeton sociologist Matthew Desmond estimated that there are almost

a million evictions a year in America.
a million evictions a year in America.

That’s 1 out of every 17 renter households.
That’s 1 out of every 17 renter households.

There are many different reasons a landlord can seek eviction, from lease violations to
There are many different reasons a landlord can seek eviction, from lease violations to

criminal activity to just wanting to sell the house.
criminal activity to just wanting to sell the house.

But the vast majority are over unpaid rent.
But the vast majority are over unpaid rent.

Vera's story is sadly familiar these days.
Vera's story is sadly familiar these days.

She was working two jobs, in retail and food service, and when the pandemic struck, both
She was working two jobs, in retail and food service, and when the pandemic struck, both

businesses closed their doors.
businesses closed their doors.

She managed to stay afloat with the increased unemployment benefits from the CARES Act…
She managed to stay afloat with the increased unemployment benefits from the CARES Act…

until they expired in July.
until they expired in July.

Her restaurant reopened shortly afterwards, but with drastically shortened hours.
Her restaurant reopened shortly afterwards, but with drastically shortened hours.

With less than half the income she used to have, she started to fall behind, and only
With less than half the income she used to have, she started to fall behind, and only

ten days after she failed to pay her rent on time, she found an eviction notice taped
ten days after she failed to pay her rent on time, she found an eviction notice taped

to her door.
to her door.

There’s an assumption that you have to be deep in debt to get evicted, but that’s
There’s an assumption that you have to be deep in debt to get evicted, but that’s

actually quite rare.
actually quite rare.

According to The Eviction Lab, the average amount that triggers an eviction lawsuit is
According to The Eviction Lab, the average amount that triggers an eviction lawsuit is

less than one month’s rent.
less than one month’s rent.

If Vera can’t pay her debt within a few days, she’ll be summoned to court at a specific
If Vera can’t pay her debt within a few days, she’ll be summoned to court at a specific

date and time.
date and time.

She’ll have one last chance to pay her debts in full, plus late charges and legal fees,
She’ll have one last chance to pay her debts in full, plus late charges and legal fees,

or the court will order a sheriff to remove her from the property.
or the court will order a sheriff to remove her from the property.

Most defendants are highly motivated to pay the money, if they can.
Most defendants are highly motivated to pay the money, if they can.

They’re probably already living in the most affordable unit they could find, and moving
They’re probably already living in the most affordable unit they could find, and moving

into a new place means putting down a security deposit they almost certainly don’t have.
into a new place means putting down a security deposit they almost certainly don’t have.

And that’s assuming they’d get approved.
And that’s assuming they’d get approved.

Most landlords won’t even consider a tenant with an eviction on their record.
Most landlords won’t even consider a tenant with an eviction on their record.

This leverage creates a temptation for landlords to use the eviction system as a kind of state-sponsored
This leverage creates a temptation for landlords to use the eviction system as a kind of state-sponsored

debt collections agency, instead of a last resort.
debt collections agency, instead of a last resort.

Depending on the state, filing an eviction lawsuit can be pretty cheap.
Depending on the state, filing an eviction lawsuit can be pretty cheap.

There are even automated apps that streamline the process.
There are even automated apps that streamline the process.

And the added fees mean extra profit for the landlord.
And the added fees mean extra profit for the landlord.

This has led to a pattern of serial evictions, where the same tenants are hauled into court
This has led to a pattern of serial evictions, where the same tenants are hauled into court

month after month, often paying more than 20% extra on their rent every time they fall
month after month, often paying more than 20% extra on their rent every time they fall

behind.
behind.

So, there’s definitely potential for landlords to abuse the system, but at least the government
So, there’s definitely potential for landlords to abuse the system, but at least the government

stepped in this year to put a hold on evictions during the COVID crisis.
stepped in this year to put a hold on evictions during the COVID crisis.

Yes, the CDC announced a federal moratorium on evictions until at least the end of the
Yes, the CDC announced a federal moratorium on evictions until at least the end of the

year, because, y’know, it’s hard to quarantine without a home.
year, because, y’know, it’s hard to quarantine without a home.

But there are some conditions.
But there are some conditions.

It only applies to tenants making less than 100 grand a year, and the tenant must declare
It only applies to tenants making less than 100 grand a year, and the tenant must declare

in writing that they experienced a loss of income from COVID, that they have nowhere
in writing that they experienced a loss of income from COVID, that they have nowhere

else to go, and that they tried their best to find financial assistance.
else to go, and that they tried their best to find financial assistance.

The moratorium doesn’t mean that Vera’s rent is forgiven--only that she can’t be
The moratorium doesn’t mean that Vera’s rent is forgiven--only that she can’t be

removed from the premises until 2021.
removed from the premises until 2021.

Her landlord is still free to bring her to court before then, where he can contest her
Her landlord is still free to bring her to court before then, where he can contest her

claims, change his pretext to something not covered by the moratorium, like lease violations,
claims, change his pretext to something not covered by the moratorium, like lease violations,

or just hope the tenant hasn’t heard about the moratorium and will leave on her own.
or just hope the tenant hasn’t heard about the moratorium and will leave on her own.

Tom the Landlord has opted to challenge Vera’s declaration, which may sound cold-hearted,
Tom the Landlord has opted to challenge Vera’s declaration, which may sound cold-hearted,

but let’s take a closer look at his side of the story...
but let’s take a closer look at his side of the story...

10 years ago, after an injury left Tom unable to keep working as a plumber, he decided to
10 years ago, after an injury left Tom unable to keep working as a plumber, he decided to

use his savings as a down payment on two rental properties and become a full-time landlord.
use his savings as a down payment on two rental properties and become a full-time landlord.

Unfortunately, the job turned out to be a bit harder than he anticipated.
Unfortunately, the job turned out to be a bit harder than he anticipated.

Like many “mom-n-pop” real-estate investors, the rent Tom collects from his tenants barely
Like many “mom-n-pop” real-estate investors, the rent Tom collects from his tenants barely

covers his mortgages, property taxes, upkeep and personal living expenses.
covers his mortgages, property taxes, upkeep and personal living expenses.

But, he figures that the increase in home values will at least allow him to sell the
But, he figures that the increase in home values will at least allow him to sell the

properties in 20 years for enough to retire on.
properties in 20 years for enough to retire on.

And then along came COVID.
And then along came COVID.

Landlord associations across the country are mounting legal challenges to the CDC’s moratorium,
Landlord associations across the country are mounting legal challenges to the CDC’s moratorium,

arguing that it essentially forces property owners to subsidize their tenant’s housing.
arguing that it essentially forces property owners to subsidize their tenant’s housing.

The CARES Act provided some relief for owners, allowing them to defer their mortgage payments
The CARES Act provided some relief for owners, allowing them to defer their mortgage payments

for 6-12 months without incurring late fees, but like the tenants, those debts aren’t
for 6-12 months without incurring late fees, but like the tenants, those debts aren’t

forgiven.
forgiven.

When the forbearance period ends, Tom will have to figure out how to pay everything he
When the forbearance period ends, Tom will have to figure out how to pay everything he

owes or risk losing his properties.
owes or risk losing his properties.

Tom’s done the math, and he just can’t afford to rack up months of mortgage debt
Tom’s done the math, and he just can’t afford to rack up months of mortgage debt

without any rental income.
without any rental income.

As bad as he might feel for Vera, he doesn’t think he should be the one to pay for her
As bad as he might feel for Vera, he doesn’t think he should be the one to pay for her

problems.
problems.

So his lawyer makes the argument that Vera hasn’t adequately searched for rental assistance
So his lawyer makes the argument that Vera hasn’t adequately searched for rental assistance

programs, and therefore doesn’t qualify for the moratorium.
programs, and therefore doesn’t qualify for the moratorium.

We’d like to say that Vera brought evidence of her applications to numerous government
We’d like to say that Vera brought evidence of her applications to numerous government

housing grants that had already run dry, and that the judge summarily dismissed the eviction
housing grants that had already run dry, and that the judge summarily dismissed the eviction

lawsuit.
lawsuit.

Case closed!
Case closed!

But let’s get real.
But let’s get real.

The majority of people who find themselves in this situation don’t have the time or
The majority of people who find themselves in this situation don’t have the time or

information to mount a thorough defense.
information to mount a thorough defense.

They can’t afford to bring lawyers with them.
They can’t afford to bring lawyers with them.

Many aren’t even aware of their rights, and most don’t show up to court at all,
Many aren’t even aware of their rights, and most don’t show up to court at all,

meaning the landlord wins by default.
meaning the landlord wins by default.

And even though “mom and pop” landlords like Tom are getting hit hard by the pandemic,
And even though “mom and pop” landlords like Tom are getting hit hard by the pandemic,

reports suggest that the majority of eviction lawsuits are actually filed by large corporate
reports suggest that the majority of eviction lawsuits are actually filed by large corporate

landlords, owned by investment firms and hedge funds that are better able to weather the storm.
landlords, owned by investment firms and hedge funds that are better able to weather the storm.

These firms have been somewhat restrained by the moratorium, but they’re already preparing
These firms have been somewhat restrained by the moratorium, but they’re already preparing

suits to evict thousands of tenants as soon as the clock runs out.
suits to evict thousands of tenants as soon as the clock runs out.

I suppose we could just blame the pandemic, but unfortunately, the eviction crisis began
I suppose we could just blame the pandemic, but unfortunately, the eviction crisis began

well before COVID came along.
well before COVID came along.

According to the Bureau of Labor Statistics, hourly wages have increased only 5 to 25 percent
According to the Bureau of Labor Statistics, hourly wages have increased only 5 to 25 percent

over the last couple decades, while the cost of renting has skyrocketed by 70 percent.
over the last couple decades, while the cost of renting has skyrocketed by 70 percent.

While the number of rental units in America has increased by 10.9 million, the number
While the number of rental units in America has increased by 10.9 million, the number

of units for $600 or less in inflation-adjusted dollars has decreased by 4 million.
of units for $600 or less in inflation-adjusted dollars has decreased by 4 million.

Essentially, all our new units are for high-income renters, while low-income renters have vastly
Essentially, all our new units are for high-income renters, while low-income renters have vastly

fewer options to choose from.
fewer options to choose from.

Today, the majority of renters who make less than $30K a year are spending over half their
Today, the majority of renters who make less than $30K a year are spending over half their

income on rent.
income on rent.

So, if we’re looking for root causes of America’s eviction epidemic, a lot of the
So, if we’re looking for root causes of America’s eviction epidemic, a lot of the

blame goes to our lack of affordable housing.
blame goes to our lack of affordable housing.

This is no easy problem to fix, with Congress unable to agree on how to address it, and
This is no easy problem to fix, with Congress unable to agree on how to address it, and

local communities opposed to any low-income development in their neighborhoods.
local communities opposed to any low-income development in their neighborhoods.

It’s a cold fact of capitalism that real-estate developers can make more money building homes
It’s a cold fact of capitalism that real-estate developers can make more money building homes

for rich people than poor people, so that’s what they’ll continue to do.
for rich people than poor people, so that’s what they’ll continue to do.

But the costs get shifted to the public.
But the costs get shifted to the public.

States spend money processing eviction suits, landlords have to find new tenants, cities
States spend money processing eviction suits, landlords have to find new tenants, cities

have to expand social services and homeless facilities, and of course, families are losing
have to expand social services and homeless facilities, and of course, families are losing

their homes, and with them, their ability to find work.
their homes, and with them, their ability to find work.

All over debts that are usually less than $1000.
All over debts that are usually less than $1000.

As with most systemic problems, looking for blame is less productive than looking for
As with most systemic problems, looking for blame is less productive than looking for

solutions.
solutions.

As Clemson professor Elora Raymond put it, “...is it the tenant’s fault… is it
As Clemson professor Elora Raymond put it, “...is it the tenant’s fault… is it

the landlord’s fault?
the landlord’s fault?

...I think it doesn’t really matter.
...I think it doesn’t really matter.

Because this doesn’t work.”
Because this doesn’t work.”

And that’s our two cents.
And that’s our two cents.

If you’re caught in a legal jam because of unpaid rent or debts, there are organizations
If you’re caught in a legal jam because of unpaid rent or debts, there are organizations

that can help.
that can help.

Check out our video guide to dealing with debt collectors to learn more!
Check out our video guide to dealing with debt collectors to learn more!