Fellow VA landlords, If you have properties in Danville, Hampton, Petersburg, or Richmond, now would be a good time to sell! Thankfully, I do not.

Pilot Program – Va. Code § 55-248.40:1

The law: This would be a brand-new law which will go into effect July 1, 2020 if the governor signs it into law. This law would apply to the cities of Danville, Hampton, Petersburg, and Richmond. The law establishes a “pilot program” intended to reduce the number of evictions of low-income tenants. A tenant in an unlawful detainer case must qualify to participate in the pilot program by appearing in court, paying at least 25% of the amount due on the court date, providing sworn testimony that he/she has sufficient funds to adhere to a payment plan, and explaining the reasons for being unable to pay rent. Furthermore, the tenant cannot have been late on rent more than two times in six months or more than three times in twelve months, and the tenant cannot have already participated in the pilot program within the last 12 months. If a tenant qualifies, then the landlord and tenant will enter a court-ordered payment plan, which will require the tenant to pay the remaining amounts due on the unlawful detainer case within the three months following the initial court date while continuing to pay rent within 5 days of the due date each month that the payment plan is pending. The law provides a method for a landlord to obtain judgment if a tenant defaults on the payment plan or current rent payments.

The impact: This amendment is intended to reduce eviction and homeless rates, which is beneficial to the overall economy of the state. However, landlords in Danville, Hampton, Petersburg, and Richmond may suffer financially from the program since they will not timely receive the full rent due to them. This pilot program is the result of substantial negotiations back and forth between lawyers and advocacy groups on both the landlord and tenant sides.

I expect this to go statewide.

We are in the process of changing our lease a little.

I dont expect the law to be as bad as it sounds.

Most of the ones that end up in court would be considered chronic late payers so the law would not apply.

Also the Governor is giving an extra 2 mil to legal aid.

Instead of 2 mil to lawyers. It would have been better to put 2 mil a year in a fund to help people behind on the rent.

My eyes are reading "three more months to get paid up" and what my brain says is "three more months rent free"

Well, I guess wait and see what the effect is. Maybe local VA landlords should be thinking about converting to a month to month rental agreement and doing a no-cause request to vacate, instead of trying to evict non-payers.

(see "lease wording" post.

It is already the law - they just need a year to create documents and implement it. Don't over-react and sell everything. Screen better on the way in. But if you want to sell something in Hampton, let me know!

Hopefully, when they evaluate it, they will see it did not help much for all it cost.

If you try the month-to-month idea, Oregon, you will need to be willing to not sue for monetary damages. How much $ are you willing to give away?

Oh be very positive about this bill. This is something we STRIVE FOR whenever we do non pay of rent with the court.

Myob,

That plan is not going to work here.

First missed date and you are allowed to file for a new court date.

RR read my post on consent (some was removed but gist of it there) when you consent that is a legal document used by the court. Tenant, LL and judge sign it. The consent, whether signed in court or before, is a binding agreement (aka court order) if you miss the pay date or pay wrong amount-- they've already had their date in court. Nothing say consents can only be signed in court.

Myob,

Not saying not a great idea. But not all states / courts the same.

Here no request to iron it out or mediation. Most have already tried that before you even file.

And even when I have other agreements that provides for a default Judgement. I still have to appear before the Judge.

They want the defendant to have a chance to dispute they did not honor the agreement.

And is even more so for a possession judgement.

Our Judges want someone to appear in actual court before they will give possession.

Also I used to like it better when the tenant did not show for court. It was quicker and made no difference.

Now Judges will only give me 10 day possession. If they show up then I can get immediate possession.