The Paletz Law Blog

Policy Makers Need to Be More Concerned About The Plight of Mom-and-Pop Property Owners

July 29th, 2025 | By: Paletz Law Press

In Michigan, Ohio and across America, a quiet but devastating crisis is unfolding in the rental housing market. Most political policy debates have neglected the smaller, less influential family landlords and investors. Owning, in many cases, just a handful of properties or single units, these landlords form the backbone of affordable housing in many communities across the Midwest. 

Many entered the rental business as an investment strategy to pay college bills or plan for retirement; however, today, due to constantly changing tenant-activist legislation, rent enforcement challenges, and economic pressures, some have come to view their investments as unsustainable in the long term. 

A Gauntlet of Challenges Faced by Smaller Property Owners 

• Non-paying tenants have become a persistent problem, with some property owners reporting months of missed rent payments while facing lengthy eviction processes. Fortunately, many of these mom-and-pop landlords who lack the internal personnel to navigate complex legal proceedings have been able to reach out to Paletz Law for assistance for many years.
   
• Tenant-friendly legislation that, while well-intentioned, has created operational and investment challenges for small property owners. Extended eviction moratoriums occurring during the pandemic, rent increase caps, new Michigan source of income legislation and continually expanding tenant rights’ initiatives have shifted the risk-reward investment balance in ways that many small landlords find overwhelmingly daunting.
• What was once a straightforward business relationship with renters, governed by lease agreements, has become a complex web of regulations.
   
• For many small landlords, the math simply no longer works. They must continue to pay mortgages, higher property insurance, maintenance costs, and property taxes, regardless of whether tenants pay their rent on time or at all. Unlike tenants who may have access to the promise of rental assistance programs, small landlords often have few resources to turn to when facing financial hardship caused by their non-paying tenants.

Squeezed by Broad Brush Policies 

Much of the new rental property legislation and tenant advocacy has been crafted to address problems associated with a small minority of less-than-scrupulous landlords. However, these same rules apply equally to a retired teacher renting out a basement apartment or a family trying to get a modicum of financial security who bought a small duplex as an investment. The compliance costs, legal risks, and operational complexities often prove overwhelming for these individual property owners.

Some Are Turning in Their Keys 

Faced with these mounting pressures, many small landlords are deciding to sell their rental properties and leave the business entirely. Some real estate markets are experiencing an increase in inventory as small landlords convert rental properties back into owner-occupied homes or sell them to developers. 

For example, the city of Seattle saw nearly 7,000 registered rental properties sold between 2016 and 2022, with almost 90% being properties of one to five units. This trend, if repeated nationally, could create a very troubling cycle. As mom-and-pop landlords exit the market, the rental housing stock they provide disappears along with them. 

Changes Needed in the Future 

Policymakers must find ways to protect tenants without driving small landlords out of the market entirely. The loss of mom-and-pop landlords represents more than just a business trend—it’s a fundamental shift in how rental housing is provided in American communities. Without thoughtful policy solutions that consider the needs of all stakeholders, this trend threatens to reduce housing options for the very people these policies were designed to protect.

Why Our Advocacy Matters

Recognizing the unique challenges faced by small property owners, Paletz Law has served as an advocate for landlords for over a decade, providing legal expertise and legislative engagement that these underserved property owners often cannot access on their own. These services help small landlords navigate complex legal regulations, streamline eviction processes, and protect their property investments.