By: Steven M. Williams
Question:
I just heard that I am unable to proceed with evictions in light of the coronavirus outbreak. Any idea when evictions will be able to proceed?
Answer:
Unfortunately, this is a moving target right now, and it is expected to continue to change as the outbreak statistics continue to change. For now, though, there are four separate governmental actions that prevent evictions. First, under the Pennsylvania Supreme Court order, all evictions are stayed until April 30, 2020. Second, under the CARES Act, signed into law by President Trump on March 27, 2020, there is a ban on evictions until July 27, 2020 for any property that receives federal funding or has a federally-backed mortgage. Third, some local governments have issued eviction bans, with varying deadlines. Finally, Attorney General Shapiro has suggested that landlords give their tenants additional time after the bans are lifted before moving forward with evictions. So, as you can see, the answer is not an easy one. But, at least for now, we can expect that evictions will not resume until at least April 30, 2020 under the Supreme Court order, or July 27, 2020 for properties that are covered under the CARES Act moratorium.
Question:
In the face of the eviction ban, can we continue to assess late fees and serve default notices so that we are ready to proceed with evictions when the bans are lifted?
Answer:
There is no prohibition under the Pennsylvania Supreme Court Order from assessing late fees, serving default notices, serving notices to quit and doing other things necessary to “tee up” a case for an eviction. However, landlords who are covered by the CARES Act moratorium, cannot assess late fees or other penalties relating to nonpayment of rent, may not issue notices to vacate during the moratorium, and cannot require a non-paying tenant to vacate sooner than August 26, 2017 (150 days after the CARES Act was enacted) or thirty days after a notice to vacate is served, whichever is later.
Question:
We have a future resident who signed her lease a month ago when she was in town. Her lease start and move-in date are fast approaching, but she has now said that she is unable to move in. Her attorney sent us a letter saying that we have no right to hold her to the lease since her lease term has not yet started. Is this correct?
Answer:
Generally, no. Once a tenant has signed a lease, her obligations to fulfill the terms of the lease are set. The fact that the lease term starts at some future date does not change this. However, you should carefully review your lease to be sure that it does not provide this prospect an “out.” I have seen some leases that say that the lease obligations begin once the move-in has occurred. If this is the case in your lease, your prospect could be right. If there are no provisions in the lease that might support the prospect’s position, then you are entitled to hold her to the lease. In this case, I suggest that you attempt to re-rent the space as quickly as possible and seek from her any rent loss you incur during the term of the lease.