Saturday, April 2, 2016

SETTING THE RECORD STRAIGHT


A new book, titled Evicted: Poverty and Profit in the American City, just hit the market.  Written by Harvard sociologist Matthew Desmond, this 432-page treatise describes in exquisite detail the day-to-day agonies of those persons who find themselves evicted from their homes by private landlords.  With his primary teaching and research interests devoted to urban sociology, poverty, race and ethnicity, Dr. Desmond is no stranger to the miseries of the poor.


One of the criticisms leveled at the evicting landlords was the claim that, in most cases, they collected rents constituting from 50 to 70 percent of the tenants’ monthly income, a situation which made late payment and eventual eviction inevitable.  This may well have been the case and, if so, reflects gross stupidity by the landlords.  As a long-time rental property owner, I’m keenly aware of the eviction process.  Here in California, any delinquent tenant who must be evicted will result in a four-month procedure, during which no rent is collected, together with fees costing at least a thousand dollars.  As a result, my property managers scrutinize each applicant closely to make certain they can comfortably afford the rent quoted.  Any landlord foolish enough to routinely accept tenants whose incomes are not equal to three or more times the scheduled rent, deserves to lose his shirt . . . and will.


There’s no doubt the author is a thorough researcher as well as a compassionate man.  However, his contention that government–subsidized housing vouchers should be available to all low-income families and that landlords be required to accept them, is a formula that could destroy rental housing.  His recognition of the blemishes of the dispossessed—unwise ways with money, drug and alcohol addiction, and casual attitudes toward birth control—to name just a few of the antisocial characteristics that chronic evictees display, explain why their presence turns many decently run apartment projects into uninhabitable slums.  Responsible landlords should be permitted to refuse admittance to persons whose personal habits would degrade the property.


My guess is Dr. Desmond does not now and never has owned a single parcel of rental property, nor does he understand the factors which dictate how well-run rentals must operate.  That’s probably not a required course at Harvard.


 
                                       
If you enjoy this weekly Straight Talk by Al Jacobs, you’re invited to check out my monthly Financial Newsletter, as well as my new book, The Road to Prosperity
                                       



 

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