Empowering Renters Empowers the Market
In the face of a housing crisis exacerbated by the pandemic, the role of renter education and financial empowerment grows more crucial every day.
Recent research by the Urban Institute, How Housing Counselors Are Navigating Challenges, underscores the critical need for comprehensive support systems for renters. The report reveals how HUD-certified housing counselors have provided indispensable guidance to families navigating financial uncertainties. These findings highlight the broader importance of equipping renters with the knowledge and tools necessary to achieve housing stability and financial resilience.
By demystifying the rental process and providing tailored advice, counselors help renters secure stable housing. Renters who are well-informed about their rights, responsibilities and available resources are better equipped to make sound decisions. Housing counselors can play a pivotal role in this by offering guidance on everything from finding and financing a home to understanding lease agreements and tenant rights.
“The rental crisis has led to calls for direct federal government intervention in the landlord-tenant relationship,” said Shekar Narasimhan, CMB, Managing Partner at Beekman Advisors, McLean, Va. He cited FHFA’s recent promulgation of new renter-protection covenants for GSE multifamily lending. “Many landlords are telling us that post the COVID eviction moratorium, the landlord-tenant relationship is frayed or broken, so while these renter protections feel like a good starting framework, it emphasizes the need for renter counseling and efforts to increase the financial self-sufficiency of renters. We do not need ill-advised regulations. We need incentives and a better landlord-tenant relationship.”
Financial literacy is another key component of renter empowerment. Understanding how to budget, manage debt and build credit can significantly impact a renter’s ability to maintain stable housing. Housing counselors provide this financial education.
Evictions carry substantial financial and logistical burdens for landlords, lenders, and tenants alike. For landlords, the costs of legal fees, court costs, and lost rental income can be prohibitive, while lenders face increased risk of loan defaults. Tenants, in turn, face homelessness, disruption of daily life, and long-term damage to credit and rental history, highlighting the need for comprehensive renter education and support programs to foster a more resilient and equitable housing market.
The pandemic highlighted the vulnerability of many renters to financial instability. With widespread job losses and reduced incomes, the need for financial literacy became even more pronounced. Housing counselors stepped in to help renters access emergency funds, negotiate with landlords and manage limited resources. These efforts not only helped renters stay housed but also laid the groundwork for their future financial security.
As we move beyond the immediate impacts of the pandemic, the lessons learned underscore the need for permanent, scalable renter counseling programs. Investments in renter education and financial literacy should be prioritized to ensure all renters can achieve housing stability and financial resilience. The ongoing efforts of organizations like the Urban Institute and the Mortgage Bankers Association highlight a commitment to addressing these needs and expanding access to essential services.
By supporting and expanding rental counseling initiatives, we can empower renters to take control of their housing situations and build a more secure future. This empowerment is not just beneficial for individual renters but also for the broader community, fostering a more resilient and equitable housing market.
“The continuum of housing, from rental to homeownership, will benefit greatly from the advocacy and support provided by housing counselors,” according to Matt Rocco, President of Colliers Mortgage, Charlotte, N.C. “This small investment will provide a tremendous return for all involved.”
Learn more about MBA’s Affordable Housing Initiative, CONVERGENCE, here. Stay up to date on all things affordable multifamily housing by joining the Affordable Rental Housing online community group.
