Eviction Risk of Rental Housing : Does it Matter How Your Landlord Finances the Property?

We present novel evidence showing how the financing choice of landlords impacts eviction decisions in rental markets. Since multifamily loans rely on timely rental payments, strict underwriting factors can increase the chances that landlords withstand income shocks. Lender provided relief may further create leeway for landlords to work with tenants who default on rent. Using data on U.S. evictions and multifamily mortgages, we document a negative relation between evictions and debt financing originated via the government-sponsored enterprises, which impose strict underwriting criteria but offer borrowers relief during unprecedented income shocks. We also quantify eviction risks induced by the COVID-19 pandemic for select cities