Tenants owe large amounts of back rent due to pandemic, causing difficulty for landlords and tenants.
The pandemic has had a devastating effect on many renters in Philadelphia, with many facing large amounts of back rent and fees. Before the pandemic, tenants facing eviction in court owed a median of about $2,000, according to an analysis of landlords’ claims in eviction filings. Now, monthly median rent debts are trending down, but remain above $4,500.
Tenant advocates have been able to help resolve many eviction cases, but high rent debts remain a barrier, since rental assistance is not currently available to fill gaps in payments. The city of Philadelphia plans to restart distributing rental assistance through a new program tied to the Eviction Diversion Program, allocating $45 million in local funding for rental assistance this fiscal year and next.
The impact of the pandemic is still being felt by many Philadelphia families, and the need for help is far greater than anticipated. Tenants often face unexpected debts due to late fees, administrative fees, and court costs tacked onto back rent, and landlords may be missing out on rent payments altogether.
Small landlords offer most of the private housing in Philadelphia that is affordable to the city’s lowest-income residents, and these landlords rely on rental income to pay for their mortgages, property taxes, and maintenance. With wages not keeping up with inflation, many tenants are struggling to get by, and landlords are having to sell their properties due to loss of income.
The pandemic has left many tenants and landlords in difficult situations, and the city of Philadelphia is hoping that their rental assistance program will help to keep tenants in their homes. In the meantime, tenant advocates are continuing to work with tenants and landlords to reach agreements and navigate the challenging circumstances.
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