Guidance for Landlords under Directive 025 – FAQs

Seal of NV

On June 25, 2020, Nevada Governor Steve Sisolak entered a Declaration of Emergency Directive 025, which lifts the statewide moratorium on evictions and foreclosures during the State of Emergency in phases. This guidance for landlords is intended to help explain Directive 025 unless otherwise prohibited by federal law.


1. Is the Lease Addendum and Promissory Note voluntary?
A: Entering into the Lease Addendum and Promissory Note for residential Rental Arrearages is voluntary but strongly encouraged because it can establish a payment plan for unpaid rent.

  1. I entered into the Lease Addendum and Promissory Note with my tenant. The tenant did not pay one of the scheduled payments as required by the Lease Addendum. What happens next?
    A: You have the option of initiating an eviction action under Nevada Law, pursuing a monetary judgment for the balance of the remaining amount due in accordance with the agreement, or both.
  2. I filed an eviction action against my tenant before Directive 008 went into effect. What happens to that case?
    A: It depends on whether or not you filed an answer, and we recommend you consult with an attorney for legal advice regarding your rights under Directive 025. However, we strongly encourage you to enter into the Lease Addendum and Promissory Note.
  3. What are the eligibility requirements to enter into the Lease Addendum and Promissory Note for Rental Arrearages with my tenant Due to COVID-19?
    A: It is voluntary and all tenants and landlords are eligible. You and your tenant are strongly encouraged to negotiate and enter into a Lease Addendum and Promissory Note.
  4. When can I evict my tenant if he/she is still in the rental property and his/her lease has expired?
    A: You can summarily evict your tenant if he/she is still in the rental property and his/her lease has expired starting August 1, 2020. You cannot use this eviction as a pretext to evict your tenant for nonpayment of rent that became due since Directive 008 went into effect, which can be done starting September 1, 2020.
  5. When can I evict my tenant if he/she is a tenant at will?
    A: You can summarily evict your tenant if he/she is tenant at will starting August 1, 2020. You cannot try to use this eviction as a pretext to evict your tenant for nonpayment of rent that became due since Directive 008 went into effect, which can be done starting September 1, 2020.
  6. When can I evict my tenant if he/she is committing what is known as a “nuisance”?
    A: You can summarily evict your tenant if he/she is committing a “nuisance” under Nevada law starting August 1, 2020. If you are a landlord or tenant experiencing any difficulty with this Directive, please file a complaint with the Nevada Attorney General’s Office at ag.nv.gov
  7. When can I foreclose on a residential mortgage?
    A: You can begin foreclosure proceedings on September 1, 2020.
  8. When can I evict for nonpayment of rent?
    A: You can summarily evict your tenant for non-payment of rent beginning September 1, 2020. We strongly encourage you to enter into a Lease Addendum and Promissory Note well before then.
  9. Do I have to allocate the money my tenant gave me to current rent or past due rent first?
    A: No. However, we strongly encourage you to enter into a Lease Addendum and Promissory Note and allocate rent according to the terms of the agreement.
  10. What if my tenant is up to date on rental payments, but fails to make a payment that he/she
    agreed to under the Lease Addendum and Promissory Note?
    A: If your tenant fails to make a payment according to the terms in the Lease Addendum and Promissory Note, you can still proceed with the remedies listed in the Lease Addendum and Promissory Note.
  11. When can I begin charging late fees or imposing other penalties for nonpayment of rent?
    A: Starting September 1, 2020, you can begin charging late fees or imposing other penalties for any nonpayment under the terms of the lease or rental agreement. However, you are prohibited from charging late fees or imposing other penalties for nonpayment of rent during the time 008 was in effect (from March 30, 2020 through August 31, 2020).
  12. I began a summary eviction action against my tenant prior to March 30, 2020, and the tenant filed an answer. What happens now?
    A: Starting August 1, 2020, the court may continue adjudicating your case if the summary eviction action was because of one of the following reasons:
     Your tenant is still in the rental property and his/her lease expired (NRS 40.250);
     Your tenant is a tenant at will (NRS 40.251(1)(a)(3));
     You alleged your tenant assigned or sublet your property in violation of the lease agreement, or committed waste, unlawful business practices, nuisance, or violated controlled substance laws (NRS 40.2514); and
     You alleged your tenant violated the lease agreement (NRS 40.2516).
  13. I brought an unlawful detainer action, or “formal eviction,” against my tenant prior to March 30, 2020. What happens now?
    A: Even if your tenant did not file an answer, starting July 1, 2020, the court can continue adjudicating your unlawful detainer action only if the reason for eviction was because the property was sold or foreclosed (NRS 40.255(1)-(4)).
  14. When will the moratorium end for those staying at hotels, inns, motels, motor courts,
    boardinghouses or lodging houses?
    A: For those staying in transient lodging (hotels, inns, motels, motor courts, boarding houses or lodging houses), eviction or other appropriate removal proceedings may begin on June 25, 2020.
  15. When will Directive 025 and Directive 008 completely terminate?
    A: Directive 025 and Directive 008 will terminate in its entirety on August 31, 2020 at 11:59pm.
    If you are a landlord or tenant experiencing any difficulty with this Directive, please file a
    complaint with the Nevada Attorney General’s Office at ag.nv.gov

Can I Buy or Sell a House During the Coronavirus Pandemic?

Real Estate and the CoronaVirus

As spring homebuying season approached this year, Mike and Tammy York of Lompoc, California, listed their house for sale and started looking for a home to buy in Bakersfield, California, where they want to retire.

But then the coronavirus outbreak called everything into question. When the governor of California issued a statewide stay-at-home order March 19, the York’s wondered if they were stuck.

“We thought, ‘Now what are we going to do?'” Mike York says.

Welcome to today’s real estate market, where many ask if it’s still possible to buy or sell. As the York’s have found, the answer is yes, though the process includes some new challenges.

“There are people out there buying and selling real estate,” says Jeanne Radsick, president of the California Association of Realtors and a real estate agent with Century 21 Jordan-Link & Co. in Bakersfield. “But it’s not just business-as-usual.”

Government social distancing regulations vary by state, county and city. Some states never instituted stay-at-home orders. Others plan to reopen soon, and still others have not set a date to end strict shelter-in-place requirements. Rules about whether real estate is an essential service during a stay-at-home order also vary.

If, like the York’s, you want to sell or buy a home despite the pandemic, here are some of the things you may encounter.

About the author: Barbara Marquand writes about homeownership and mortgages, and is NerdWallet’s authority on insurance.

Guidance for NV Landlords

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Last month, Nevada Governor Steve Sisolak entered a Declaration of Emergency Directive 008, which established a statewide moratorium on evictions and foreclosures during the State of Emergency. The Directive applies to all acts related to evictions and foreclosures, including those pending in the courts. The Attorney General’s Office has published additional Guidance for Landlords below to be followed at this time.


 For purposes of the Directive, a Tenant is anyone that manifests an intent to stay regardless of the type of housing and includes transient lodging in a motel/hotel.
 Landlords may not issue any lockouts, notices to vacate, notices to pay or quit, evictions, or other proceedings against Tenants, absent the exceptions outlined in the Directive, even if the Tenant does not make payments under a payment plan for agreements made after the Directive was entered.
 Tenants and landlords are encouraged to negotiate payment plans within 30 days after the termination of the Directive in order to cure any missed payments. Landlords may discuss options with their tenants, and tenants may voluntarily make partial payments toward their rent obligations, but repayment agreements are not enforceable until after the termination of the Directive. The terms of any payment plan cannot violate the Directive or contain any language contrary to the Directive.
 Landlords may not use coercion, duress, or intimidation with Tenants. This includes, but is not limited to, threatening to evict a tenant the day the moratorium is lifted, or coerce or induce a tenant to pay rent by using economic impact payment checks or any other source of income.
 Landlords that do not adhere to the prohibitions and mandates of the sections 1-3 of the Directive are deemed to be using coercion, duress, or intimidation in transactions with a tenant.
 The Directive does not relieve any party of their contractual obligations to pay rent or comply with any other obligations imposed on parties by a lease, rental agreement, or mortgage. Landlords must still perform maintenance/repairs, and full rent is still owed in accordance with the lease.
 For lease renewals, the Directive recognizes individuals may need to remain in isolation or quarantine at their homes or otherwise remain indoors to reduce the spread of COVID-19, and specifies stability in housing as essential for all Nevadans to maintain appropriate social distance. Attempts by landlords to increase rents or add new fees as part of lease renewals can cause tenants additional duress.
 The moratorium “does not prohibit the eviction of persons who seriously endanger the public or other residents, engage in criminal activity, or cause significant damage to the property.”
 For landlords with a federally backed loan, or for property that is public housing, receives assistance from HUD, USDA rural housing, or USDA rural housing programs, or Low Income Housing Tax Credits, or participates in another federal program, under the CARES Act, landlords cannot initiate eviction for nonpayment of rent between March 27 and July 24, 2020 (120 days), or until the Nevada State of Emergency lasts, whichever is later. Landlords may not issue a notice to vacate until after July 24, 2020, and then must provide 30 days to vacate the unit unless state law prohibits evictions.

If you are a landlord or tenant experiencing any difficulty with this Directive, please file a complaint with our office at ag.nv.gov.

2020-04-08 COVID-19 Declaration of Emergency

NV Executive Department

Open house showings, and in-person showings of single family and multi-family residences currently occupied by renters of real estate on the market for sale, are hereby prohibited for the duration that this Directive is in effect. This provision does not prohibit the use of existing three dimensional interactive property scans; virtual tours, and virtual staging to showcase a property, and it allows, but does not require, the tenant to agree to provide photos, videos or other virtual access to the property owner for this use. Real estate professionals engaged in real estate sales during the state of emergency shall adopt precautionary measures and COVID-19 risk mitigation practices to minimize the risk of spread of the disease and are encouraged to avoid in-person transactions and services to the extent practicable. This provision shall not be construed to limit the sales of real estate during the state of emergency.

This Directive shall remain in effect until April 30, 2020, unless renewed by a subsequent Directive promulgated pursuant to the March 12, 2020 Declaration of Emergency to facilitate the State’s response to the COVID-19 pandemic.

March 2020 Carson Valley Real Estate Update

Carson Valley Update

We had 64 residential sales in the Carson Valley during March.  A 33% increase from the 48 sales in March of 2019.  The median sales price also increased from $440,000 to $490,000 as well as the average days on market from 105 to 120 days.  Most of this year’s March sales occurred in the Minden/Gardnerville downtown areas (16).  Johnson Lane had 12 sales, the Ranchos eight and Genoa had six.  For those curious if any properties were withdrawn from the market there were 13 withdrawn this year as compared to only 7 last March. Agents are finding other ways to show your property at this time.  I have been using video for my listings as well as for buyers not wanting to venture inside our current listings.  I am also wearing gloves at this time and have noticed owners placing sanitizer near their front doors for everyone’s use.  Be safe everyone.  Learn more by visiting CarsonValleyCommunities.com for more information.  Call 775-309-8454 to schedule an appointment. 

Douglas County NV Tax Sale

Douglas County NV Logo

Upcoming Tax Sale – March 25, 2020

Our annual property tax sale is being held on March 25, 2020 starting at 10:00 am online at www.bid4assets.com/douglasnv. Please visit this website for a list of parcels.

Please note the following bidding instructions:

·         No bid less than the amount of delinquent taxes, delinquent assessments, interest, penalties and costs will be accepted.

·         Property sold at the auction may still be subject to remaining principal and accruing interest due on assessments or perpetual liens, which are not extinguished by the sale, as set forth in the Nevada Revised Statues.

·         Buyer is responsible for the real property transfer fees and recording fees.

·         All sales will be made subject to existing right of way and easements of Douglas County, Nevada and the State of Nevada.

·         DOUGLAS COUNTY RECOMMENDS THAT ALL PROSPECTIVE BUYERS OBTAIN A TITLE SEARCH ON THE PROPERTY OR PROPERTIES THEY ARE INTERESTED IN AS DOUGLAS COUNTY DOES NOT GUARANTEE TITLE.

·         Further information concerning the sale may be obtained from the Treasurer’s office at 775-782-9018 or on our website https://cltr.douglasnv.us/treasurytaxes/tax-sales/or by consulting the records of the Douglas County Assessor and the Douglas County Recorder.

FEBRUARY 2020 Real Estate Update

Carson Valley Update

The Carson Valley median sales price of residential homes sold in February increased 6.4% from the same time period last year. There were a similar number of homes sold in the mid-40’s. There are currently 112 homes for sale and 116 in escrow waiting to close. Nothing changes if nothing changes, they say but if you decide to sell your home and are interviewing REALTORS®, I’d be happy to help. I have 25 years of experience. Call 775-309-8454. Robert Stiles, REALTOR® BS.1001136 CHASE INTERNATIONAL

Understanding “CAP Rates”

Net Operating Income

In commercial real estate, the capitalization rate or “cap rate” is a formula utilized to analyze real estate markets and compare investment opportunities. A property’s capitalization rate can be calculated by dividing its net operating income by its purchase price. The cap rate provides a snapshot of a property’s earning potential. Both investors and business owners utilize cap rates when shopping for commercial real estate, as a higher cap rate means a higher return for the investor.

Cap Rate 
Net Operating Income /Purchase Price = Cap Rate

In the example below, an investor purchases a doctor’s office for $500,000. The property has a long-term tenant, with a 10-year NNN lease. The monthly rental income is $2,500, with an annual net income of $30,000. In this scenario, the property’s cap rate is 6%. In addition to providing a measuring stick to compare similar properties against, cap rates provide investors with an expected rate of return. In this scenario, the 6% cap rate means the investor received a 6% annual return on their capital (in addition to any appreciation).

6%        =  $30,000 / $500,000

A property’s cap rate offers a very practical way to analyze its value, by comparing its earning potential and purchase price. Like a weather barometer, cap rates can be used to measure the economic health and investment activity within a community. Currently, national cap rates for commercial properties range from 4% to 10%, with Reno’s cap rates ranging from 5-7%.

In today’s low interest rate environment, with money markets paying less than 2%, local commercial real estate continues to offer investors 5-7% annual yields. Known for being a stable asset class that preserves wealth, commercial properties remain an attractive investment for individuals, businesses, retirement plans, and trust funds.

My Home Appraisal Came in Low

Appraisal Came in Low

Your appraisal came in lower than your accepted offer price. The first thing your agent should do is review the appraiser’s report for errors.  Appraisal challenges are not easy but what if your challenge fails?  There are essentially four options.

  • Ask for a new appraisal. You can ask the lender to order an appraisal from a different company. This could certainly be met with resistance and the lender could flat out just say no.
  • While not the best option for the seller, the price could be reduced to the appraised value and the sale could move forward.
  • The buyer could increase the amount of money they put down. If the seller is digging in their heals and won’t budge the buyer could increase their down payment to make up the difference in the appraised value.
  • The fourth option is actually a combination of the last two options. This is an option that I have personally seen work on a few occasions. Like anything else in life the buyer and seller compromise with the seller reducing the price and the buyer coming up with an additional amount of funds. In this scenario both parties contribute and the sale goes on as planned!”

Remember appraisal’s are not the ultimate judgment of a home’s value. A home’s true value is what a “qualified” buyer will pay for it.

Could refinancing save you money?

Refinance Your Home

If you’re a homeowner, you might think that all the recent talk of low mortgage rates doesn’t affect you. But that isn’t true — they may be your key to savings.

Even if you had a sizable down payment or received a competitive interest rate at the time, refinancing your home now could mean saving thousands over the life of your loan. Ask yourself these four questions before making up your mind:

  1. Have your finances improved? If you have a better financial profile now than when you bought your home, you may be able to make a larger monthly payment with a lower interest rate, speeding up your mortgage repayment. If your credit score has improved or you have a higher income, this applies to you.

  2. How much have interest rates dropped? Mortgage rates fluctuate with changes in the economy. You may be able to obtain a more cost-effective mortgage today than when you first purchased the property, even if rates have only dropped by a percentage point.

  3. How much will refinancing cost? The process will likely cost you a percentage of the amount you borrow. Remember the application and appraisal fees when you bought your home? They apply here too. Another thing to consider: If your home interest payment is a tax deduction, a decrease in your interest amount could lower that deduction.

  4. How much longer will you be in the home? If you’re not planning to stay in your current home very long, and therefore won’t need to pay off the mortgage, refinancing shouldn’t be your top priority. Spending the time and money on that process won’t pay off like it would if you stay in your home for another 10 years or more.

Are you ready to refinance? Do you have specific questions about your situation? Reach out today. Norm Hansen | nhansen@rpm-mtg.com | Cell: 775.720.2826