Landlords Shouldn’t Get Away Without a Hit This Time

The question of who takes the hit from coronavirus is implicit in many of the policy decisions that governments will make during the next few months. There are basically two criteria leaders should use to decide who loses the most from coronavirus. The first is human welfare -- making sure that everyone still has food, shelter and the other necessities of life, not just during the pandemic but after it. The second is productivity; the government needs to preserve the ability of companies and workers to create real economic value. Both considerations suggest that landlords should take a hit.

With many businesses shuttered and workers out of work, the country is experiencing a deluge of missed rent payments. On the residential side, fewer than 70% of renters made payments by April 5; normally more than 80% of payments are on time. Even one month of missed rents can result in large losses to landlords: