Great news for the Jedi— bad news for anyone in Vegas who has tenants.
Weekly Rentals Will Get Hit Hard
Evictions were set to begin in Nevada today but last night. Governor Sisolak announced to extend the eviction moratorium for another 45 days. Weekly rentals do not require a contract. They do not require credit checks. A customer will rent a room for one week and pay in advance. If they don't pay, then they are out.
Except: with an eviction moratorium, weekly tenants have been allowed to stay when they would normally have been evicted. Unlike when you own a lease, weekly renters are not obligated to stay for days that have not paid. Weekly rentals are cash basis whereas a lease is a loan. If you leave before the ease, you still owe the money. But when you live in a weekly you pay in advance.
As the moratorium nears 6 months and the defat of each individual weekly unit balance approaches $10,000, locals in Las Vegas are just now beginning to see what the Jedi have been saying since March: Vegas is a house of cards (literally and figuratively). Look around. The Fountaine Bleu, The Drew, The Eschelon, The Golden Dragon, The Palms, & the Mandalay Bay Maassacre of 2017 were all signs warning investors that Vegas was and (still is) a risky, fragile investment.
Up to 327,000 Nevadans Postponed their Evictions due to Limited Court Size
According to a report from Guinn Research, between 272,000 up to 320,000 Nevadans are facing eviction. The majority living of those being evicted are living in Clark County (250,000). The original moratorium was put in place on March 29, 2020 set to expire today, September 1, 2020. The question remains: what impact will evicting 250,000 people out of 2.2 million in Clark County have on the local economy-- real estate, tourism & travel?
Casino revenues were down nearly 40% YOY July 2020. In the event that the tourists tax doesn't cover the Allegiant Stadium payments, the stadium will withdraw from the Clark County General Funds.