With the holidays on the horizon and life moving fast, you might begin to think about how you are going to pay rent and all the bills you have. If you are the landlord of properties, you are probably considering where your dead-weight is, who needs to be evicted and the true cost of evictions.
If you don’t know what eviction is, it is the force-ably removing a tenant from your owned and managed property and let me tell you it is not pretty. The fact of the matter is that evictions are costly and due to tenants not paying their rent over and over. As property owners, there is a lot to understand and learn, this is just one piece.
When eviction becomes a must there are some tips to know to help you out. From pending rent to destructed property let’s learn about the true cost of evictions for landlords.
It’s A Battle – True Cost Of Evictions For Landlords
Evictions cost a lot of money because you just can’t throw a person out, you actually have to be able to justify the reason for eviction, follow it up with proper paperwork and of course you will probably need an attorney.
The true cost of evictions for landlords is quite expensive so any way to avoid eviction or getting into the proceedings is generally the best avenue.
Don’t make the mistake of assuming that evictions are easy on the landlord and that they are all heartless. In fact, many landlords tirelessly work to keep their tenants, bend rules, payment schedules, but there is only so much bend when no money is being paid on properties being ‘rented’.
The landlord has emotional struggles as well because they know life is not pretty, but the toll can be a huge financial one and in the end, the eviction will happen.
TYPES OF EVICTIONS
If you don’t own property this will further dissuade you from ever owning units. Owners of properties will easily relate to these horrid tales of types of eviction!
Have you heard of self-eviction? If you have you know that it is illegal and not the good path to follow. Simply put, self-eviction is shutting off the utilities, and changing the locks! You thus, end it with a tenant right then and there, this is NOT how to handle an eviction.
These are the evictions you often see play out in television shows and movies when you get a hard-ass landlord who takes on the world, lol!
These are the formal proceedings, the kind that follows the books and the legal system. Eviction is not just a change of a lock or a call to the cops, there are so many proper steps that need to be followed so that the eviction is held up and legal.
- Give notice to the person to pay what is owed or to vacate. The notice required varies from state to state. You don’t just say, “you are gone” and then wash your hands of the tenant.
- If the tenant doesn’t pay or vacate, terminate the lease.
- File an “unlawful detainer” action with the local county court.
- Serve the tenant the summons to appear (unless the court does this for you). (often a sheriff will deliver this )
- Attend the hearing. (take-off of work to get to court and HOPE they are running on time with the proceedings)
- If needed, get a “writ of possession”, which is an order that gives you the right to have a sheriff remove the tenant with force. (and wait for it to be executed…more time)
- Remove the tenant’s belongings. (put those cleaning gloves on because you are about to get the thrill of a lifetime!)
- Change the locks. (It’s Over…
It’s Never Easy
Remember I said this process is a long and very labor-intensive process. The cost of lost rent, attorney fees, court costs, sheriff fees, locksmith, repairs, and cleaning fees often add up to thousands of dollars.
Don’t even think you are heading into a clean ‘rented’ property as often properties are destructed. Unless the landlord is a major DIY’er, he or she will often have to outsource a lot of these things, upping the cost even more.
Again, don’t forget that most that own properties still work a day job, so you will be off from work attending court, waiting for the Sheriff and cleaning up after the tenant you are working on evicting.
Tools To Help You Avoid the Eviction Process
The Best tips, tricks, and advice for landlords is to do your due diligence on the front end when accepting applications for renting your property. The article I just cited from MySmartMove notes, you need to follow these nine steps in order to avoid the eviction nightmare:
- Treat your rental property as a business.
- Find tenants online
- Set the right rent price.
- Create and follow a tenant screening process.
- Have a written rental agreement.
- Enforce and follow the rules.
- Collect rent payments online.
- Keep digital records of everything.
- Retain good tenants.
It seems apparent to me that the vetting/screening process becomes the most important of these steps. Make sure you require a thorough rental application with the necessary details: references, employers, and why they left their last place or residence.
Don’t forget to make sure to conduct a credit check, which could uncover things like outstanding debt, past bankruptcies, and even prior evictions. An upstanding financial history can help predict the ability to pay rent in the future.
KEEP THINGS POSITIVE
Remember positive broods positive so keep those good tenant relationships shining. There is something to be said for treating great tenants well. Once you’ve realized you’ve hit the jackpot as far as tenants go.
You want to make sure to keep their rent fairly priced and give them ample decision-making opportunities when it comes to decorating the place. Good tenants are golden so you want to ensure you keep them happy and keep them signed on to keep that rental money inbound! Sourcing takes too much time!
Lavishly live life out loud, understand the true cost of eviction for landlords, and you might decide that rentals and rental properties are a tough responsibility. Have respect for what you are about to take on before you purchase and things will go more smoothly. The rental business is not monkey business.