Landlords Can Seek Compensation After Eviction Ban, Court Rules
In a significant win for property owners across the country, a federal court has affirmed that landlords have a constitutional right to seek repayment for losses caused by the CDC’s nationwide eviction moratorium during the COVID-19 pandemic.
This ruling could have far-reaching implications for housing providers, especially small landlords, who were left financially vulnerable when the moratorium took effect in 2020.
What Happened?
The case, known as Darby v. United States, challenged the legality of the eviction moratorium issued by the CDC during the pandemic. While the policy was intended to slow the spread of COVID-19, it placed enormous financial strain on independent rental property owners, many of whom rely on that income to survive.
The lawsuit, backed by several REALTOR® associations and supported through legal advocacy by the National Association of REALTORS® (NAR), argued that the government’s actions amounted to an unconstitutional “taking” of private property without compensation under the Fifth Amendment.
On June 6, 2025, the U.S. Court of Appeals for the Federal Circuit denied the government’s request for a rehearing, allowing the original decision to stand: property owners may legally pursue compensation for income lost during the moratorium.
Why This Matters for Ventura Owners
While this case is national, it hits close to home, especially in communities like Ventura, where many landlords are individuals or families with one or two rental units. They’re not corporate giants, they’re often retired, self-employed, or relying on rental income to fund everyday living.
For these mom-and-pop property owners, the pandemic-era eviction ban created a wave of financial hardship, with little to no relief.
This ruling reinforces something important:
Even in times of crisis, the rights of property owners matter.
What Could Come Next?
This isn’t necessarily the end of the legal road; the government could still ask the U.S. Supreme Court to review the case. But for now, the ruling stands, and it opens the door for landlords across the country to pursue rightful compensation.
NAR has pledged to continue its advocacy on this issue and to support property owners as new developments unfold.
What This Means for You
If you’re a rental property owner who was impacted by the moratorium, financially or legally, this decision may offer a path forward.
Even if you’re not pursuing a claim, this ruling highlights why strong property rights protections are critical to the long-term health of the real estate market. It also underscores the importance of working with professionals who stay informed and can help you navigate changes, whether legal or market-related.
Need Help Understanding What’s Next?
Whether you’re an investor, a homeowner considering renting out your property, or simply someone who wants to stay informed, I’m here to help connect the dots between national policy and how it impacts real estate here in Ventura.
📞 Call me at 805-850-5443 or visit www.roylinsells.com. Let’s talk about how to protect your investment and plan for what’s next, whatever the market (or courts) may bring.
