The most important aspect of maintaining a successful property rental business is having top-quality tenants who abide by the rules and pay rent on time.
Bad tenants lead to a loss of income in the future in terms of back rent. To protect your property and income from problematic tenants, an eviction may be necessary. However, it is a time-consuming and costly process and can be taxing for both you and the surrounding tenants.
Even back in 2015, eviction rates were high in the United States due to the rising cost of rent payments. Landlords were faced with high eviction costs while losing out on revenue as tenants were not able to make the monthly payments. Now with the effects of Covid-19, property managers are further burdened by rising evictions. During the pandemic alone, over 470,000 evictions were filed across 6 states tracked in the US.
Each eviction can cost up to $3,000 for the landlord, making it a costly ordeal. When possible, finding alternative solutions would be the better choice.
Knowing when to evict a tenant
You may be tempted to evict a problematic tenant when the situation gets out of hand, but to avoid any legal trouble, you need to be aware of when a quit notice can be presented to the tenant.
Before renting out any properties, you should make sure that the lease agreement includes all the important terms and conditions of renting a property. Any terms not mentioned on the lease can be fought in court by the tenant.
Here are some common situations where you can pursue the eviction of a tenant:
Recurring months of unpaid rent
Lease violations
Damage to the property by the tenant
The process of evicting a tenant
Due to the lengthy and uncertain process of eviction, many landlords prefer to avoid eviction and try to sort out the problem themselves. A certain amount of time needs to be given to the tenant to resolve the issue. This will differ depending on where you live. However, if the problem still persists, here’s what you need to do:
A complaint should be filed with the local court detailing the issue
A court date will be sent to you, and a summons will be sent to the tenant
On the court day, both sides will be presented to the judge by you and the tenant
If you win, the judge will issue a Warrant of Eviction, forcing the tenant to leave. If required, an officer will be present at the property to evict the tenant. Depending on your lease terms and local laws, the tenant may be liable to all proceeding fees:
Court filing fees
Attorney fees
Damages to the property
However, if the tenant wins, they can continue staying at the property and the landlord will be liable for the court filing and attorney fees.
A breakdown of the eviction costs
The cost of eviction may be higher than what you factored in. There are additional costs such as maintenance and back rent involved as well. These rates will differ based on where the property is located. Here is the full breakdown of the true eviction cost:
Back rent - The eviction process can take up to two months to complete. You will lose this income during this period. On average, this can cost upwards of $1500.
Court filing costs - This rate will depend on the location, but the average in the US is $90.
Sheriff’s office charges - To serve a notice of eviction to the tenant, the sheriff’s office will charge a fee, typically ranging from $50 - $300.
Legal fees - The eviction process is complicated and requires a lot of paperwork. Hiring an attorney to handle this and also make sure it is all legal is important. Depending on the attorney, this can cost anywhere between $500 - $900.
Maintenance fees - Once the tenant has been evicted, the property will need to be cleaned for the next tenant. Personal possessions may need to be kept in storage or disposed of properly. This on average will cost around $300.
Property damages - Any damage caused by the tenant will need to be repaired and you may even need to hire a locksmith for security. This cost will depend on the level of damage caused but can range between $400 - $1500.
Marketing fees - There will be additional costs to list the property back for rent. This can cost up to $150 in total.
All of these costs add up to be an expensive endeavor for the landlord and this is not considering the non-financial costs involved such as lost time and the stress of a legal case. Preventing problems before it leads to eviction is the most ideal situation.
How to avoid evictions
The eviction process may look simple on paper but it can be a stressful ordeal. Therefore, evictions should be a landlord’s last resort. Instead, the focus should be placed on finding high-quality tenants and preventing problems before they arise.
These are alternative methods to prevent evictions:
Offer a cash-for-keys deal - This method involves the landlord offering a few hundred dollars of cash to the tenant to move out. It acts as an incentive for tenants with cash flow problems. Paying the tenant this cash will be less costly than eviction.
Screen your tenants - The easiest solution is prevention before it becomes a problem. The best way to do this is by screening and analyzing each tenant before allowing them to rent the property. High-quality clients are much less likely to force an eviction in the future.
Assetsoft is an experienced property management service provider that can help you avoid all bad tenant-related expenses by incorporating this software into your property today.