NYC Spars With Hosts Over New Airbnb Rental Laws, 25% drop in nightly rentals, what does this mean for Colorado
I always watch what happens on the coasts to see what is next for Colorado. …
Boulder city council recently approved a new ballot measure that has gathered enough signatures to appear in November. The new initiative is “No evictions without representation” to provide legal assistance for anyone facing eviction. What is in the ballot measure? How will this impact real estate and rentals in Boulder?
The new initiative will provide free legal assistance for anyone that is facing the eviction and requests assistance. Unfortunately, the initiative is not really free, there will be a $75 dollar a unit fee. For example a 100 unit housing complex would pay 7500 in fees to fund attorneys for people facing eviction. You can bet this fee will be passed on to renters in the form of higher rents.
I’m a bit perplexed as to the objective of this initiative. Almost all evictions are filed for non-payment of rent. Property owners are in the business of collecting rents as opposed to evicting tenants. Evictions are expensive and prolonged processes that they seek to avoid. In the new initiative if someone doesn’t pay rent, they can get an attorney for free to represent them. The tenant and attorney show up to court and the judge asks if they paid rent, the answer is no. Unfortunately having an attorney is not going to change the outcome of the case as it is a clear issue, either rent is paid or not. All the measure does is prolong the process.
I’m not the only one a bit confused: “Ninety percent of the evictions in Boulder County are for non-payment of rent, and an attorney present will not change the outcome of that eviction hearing,” said Todd Ulrich, board president of the Boulder Area Rental Housing Association
I think it should be required that everyone running for a public office should have to take a basic class in economics. Unfortunately, the consequences of this ballot initiative will far outweigh any benefits. In the real world nothing is free and this is especially true for this initiative.
The Boulder initiative to provide free legal representation is unfortunately anything but free. The unintended consequences of this initiative far outweigh any gain from having a lawyer. Having a lawyer does not change the fact that the tenant did not pay rent, it merely delays the inevitable while substantially increasing costs. These costs will ultimately be borne by property owners and passed on to renters in the form of higher living costs. There is no free lunch. I wish our elected officials and voters from both parties would take a basic economics class to understand this concept.
We are still lending as we fund in cash!
I need your help!
Don’t worry, I’m not asking you to wire money to your long-lost cousin that is going to give you a million dollars if you just send them your bank account! I do need your help though, please like and share our articles on linked in, twitter, facebook, and other social media. I would greatly appreciate it.
Written by Glen Weinberg, COO/ VP Fairview Commercial Lending. Glen has been published as an expert in hard money lending, real estate valuation, financing, and various other real estate topics in Bloomberg, Businessweek ,the Colorado Real Estate Journal, National Association of Realtors Magazine, The Real Deal real estate news, the CO Biz Magazine, The Denver Post, The Scotsman mortgage broker guide, Mortgage Professional America and various other national publications.
Fairview is the recognized leader in Colorado Hard Money and Colorado private lending focusing on residential investment properties and commercial properties both in Denver and throughout the state. We are the Colorado experts having closed thousands of loans throughout the state.
When you call you will speak directly to the decision makers and get an honest answer quickly. They are recognized in the industry as the leader in hard money lending with no upfront fees or any other games. Learn more about Hard Money Lending through our free Hard Money Guide. To get started on a loan all we need is our simple one page application (no upfront fees or other games)