What to Consider Before Eviction!
By
Anesia
Springborn
The
Landloard System by Anesia
Sometimes we just want a tenant out of
our property! Chasing down late rent and lease violations can easily lead us
down the path of eviction when we’re frustrated. Eviction can be a costly
process, so consider the financial implications and your other options
before actually going through with it.
What are the costs involved in an
eviction? As soon as your tenant knows you are proceeding with eviction,
they are probably going to stop paying rent, regardless how long the process
takes and how long they end up staying in the apartment. If you win the suit
in the end, this lost rent will be due to you, but realistically you may
never collect. In a best case scenario, eviction will result in an empty
unit and a judgment in your favor, but a judgment falls very short of
payment!
One of the hidden costs of an eviction is
the costs to re-rent, or the “holding costs.” Once your eviction notice has
been served and the eviction proceedings are underway, you are probably done
receiving rent as stated earlier. You are also unable to predict exactly if
you will win the eviction, and when the evicted tenant will be moved out.
This makes it difficult to begin marketing your unit. Even if you took your
chances on knowing what date the eviction would all be over with and you
started marketing, your current tenant would probably not cooperate with you
for showings. The last thing you want is to show the apartment with your
tenant facing eviction present. You may need to wait on all efforts to
re-rent until the eviction is completely over.
Sometimes tenants faced with an eviction
will cause damage to the property just before they leave. I once saw a house
completely vandalized with spray paint, inside and out, along with
considerable other physical damage done by a tenant that just lost an
eviction. The landlord had it all repaired and then it was done a second
time. You may not be able to prove who damaged your property or ever collect
on the repair costs.
You will also have court fees and
possibly attorney fees for the eviction proceedings. You may represent
yourself if you'd like, and your local apartment association may be able to
advise you in some capacity. Regardless, you will have court costs and also
a considerable amount of your time and/or the time of your property manager
before the eviction is all over. If you win the eviction, you will probably
be awarded the court costs. But again, your ability to collect is limited by
the evicted tenant’s ability to pay.
When issues arise, you may have options
other than eviction. You can get creative on what penalties you negotiate
with your tenant. In some cases, you will save considerable costs and
headaches if you can agree on some type of restitution and keep your tenant
in place. If you can work out an alternate arrangement, you may strengthen
your relationship and improve future behavior. Your tenant may feel a
certain indebtedness because you averted the eviction. Be sure your tenant
always knows there will be consequences to violating your policies, but feel
free to offer consequences that can work for the both of you.
Eviction is something we all want to
avoid. If you’re considering an eviction, take a moment to review your
tenant screening procedures. Was there any indication of trouble? Next,
review your lease documents. Be sure your tenants are clear on what would
lead to an eviction so they are given the full opportunity to prevent it.
Finally, be sure you are enforcing your rules so that issues are nipped in
the bud early. Let late fees, notices to correct, and reasonable
conversations be your first alternatives, and let eviction be the solution
of last resort.
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About the author
This article has been written by Anesia Springborn, real estate
investor and creator of The Landlord System. Anesia teaches her
students how to leverage time and money to grown their passive
income stream. She may be reached by visiting
www.TheLandlordSystem.com
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