Moratoriums Mean Ongoing Uncertainty for Investors

For investors looking to underwrite apartment properties, the eviction moratoriums from The Centers for Disease Control and Prevention (CDC)  and local state governments are creating some uncertainties.

Essentially, investors will need to discount the value of the rent roll more than normal in some acquisitions. “For investors, it’s just uncertain as to how you can bank on a rent roll or solidify numbers until this [eviction moratoriums] shake out,” says Andrew Rosenberg, a partner at Cassin & Cassin LLP. “Investors will proceed, but they’ll proceed more carefully, meaning they either have better reserves or they pay a higher rate.”