PHOENIX (3TV/CBS 5) -- It is the first of the month, and normally rent is due for tenants across Arizona. But for thousands in the state, that may not be the case.
Gov. Doug Ducey enacted an executive order that people who are quarantining or have lost jobs don’t have to pay rent for up to 120 days due to COVID-19.
So what does that mean for property management companies and landlords? For Mark-Taylor Residential, they said this is the worst-case scenario.
The company is responsible for over 60 properties and 32,000 residents in Arizona. With the governor announcing there will be no evictions for four months, and leniency on rent during that time, Mark-Taylor Residential President John Carlson is expecting massive losses.
Lennie McCloskey has been a constable in Maricopa County for 15 years, but he's never had a month like last month due to the coronavirus.
“It’s going to be a significant shock to the financial system from a landlord perspective or an apartment ownership perspective. It’ll be millions of dollars across Phoenix metro for sure,” said Carlson.
Homeowners will not face foreclosure or eviction in Arizona for at least two months, according to an agreement Governor Doug Ducey made with the state's banks.
Carlson said he has to sift through who is capable of paying rent right now and who isn’t, and they’re currently working with all residents individually to work through that process. “As a landlord, the last thing we want to see is an eviction,” he said.
The money will help families and individuals who are facing a loss of income due to COVID-19.
But Carlson fears with so much financial and medical unknown looming in the future it could only get worse. “Some folks have savings. Some can ride out a month, maybe two months. But if this extends into three, four, five months, I think that’s where our concern would be," he said.
On Wednesday, Arizona’s Family asked Ducey's office if any protection or financial stimulus is being prepared for property managers who rely on this monthly income. We did not get a response back.