21 Jun Making Sure Eviction Is The Right Move
Evictions are never a happy time for landlords, they are a last resort for delinquent tenants. Other than being costly, evictions take time and resources to complete. There are times when you have no choice, but are they always necessary? What are the cons?
Sometimes, evictions can be a bad idea, considering the time and costs that the process could cost. It may make sense to think of alternative pathways, such as an agreement with the tenant to catch up on the late payments as they continue to live in the rental unit.
Alternative options to eviction can look a lot better when the cost of evictions are more clearly laid out:
The Cost of Evicting a Tenant
The true cost is more than financial, but the financial cost can be severe. The legal and court fees can total upwards of $4,000 and depending on the condition of the rental, damages could raise that cost exponentially.
Other than the finances, evictions cost valuable time and resources. Time from the filing of the eviction notice to the time that you can get the right court order can be three months. Even after this, there is never the guarantee that a judge will rule in your favor!
There is also the less calculable, but all too real effects of the stress that evictions cause.
Unfortunately, when tenants are delinquent, many landlords start legal processes earlier than they may need to. If a tenant is extremely late and behind on payments, has wrecked the unit, are loud and cause many disturbances with neighbors, or the police have been called before or more than once, then eviction is most likely the best path.
Good Tenants Fall on Hard Times
At times, good tenants can hit a rough patches and it may not make sense to evict a good tenant who is temporarily struggling. They could have lost a job or had large unexpected bills from medical treatment that have put their rent payment back a few months. While it may be technically grounds for eviction, non-payment from a good tenant could not be worth the effort and the aftermath.
If they have taken good care of the rental, historically paid on time and in full, they may just need a little time to catch up on rent while finding a new job, or something of the sort. This situation may call for some negotiation with the tenant.
This could mean that the short term sees a small financial hit, but with the cost of eviction, filling a vacancy and the screening of new tenants, you could save money by keeping a good tenant.
Make sure that this policy, if you choose to strike a deal, is in writing and signed by both you and the tenant.
The Costly Process
Sometimes the process will be too costly and it may make sense to wait. Landlords generally have to pay legal fees. Then on top of those fees, landlords usually have to pay for the cleanup and damages. You can sue for damages, but like an eviction, there is no guarantee of success.
What are some options to help avoid evictions? A “Cash for Keys” arrangement could work. Why not offer a lump sum to tempt someone out of your rental? This could be very tempting for a tenant that is in a rough financial state. This also allows them to keep an eviction off their record.
For example, if an eviction will cost you $3,500 then why not offer them $1,000 to move out, saving you money and keeping their record clean. Both get what they want, neither has to go to court for it.
The Legal Hot Water of Evictions
Without legal grounds, evicting a tenant can land you in hot water quickly. Ensuring that the law is on your side from the jump is crucial. As long as they follow the terms laid out in the lease and the applicable laws, it may be hard to evict them.
Scenarios where eviction is not good:
Retaliatory Eviction: Say someone complained about you to the housing authority about safety or maintenance issues, valid or not. To evict this person because you disagreed or did not like their actions would not be smart. If you try and evict someone inside of 6 months of a complaint, a judge could easily see this as retaliatory.
Discriminatory Eviction: Evicting someone on the basis of race, religion, sex, color, family status, origin or sexual preference is never allowed. An example would be trying to evict a young family because the baby cries too much and you do not want that disturbance.
Withholding Rent: Sometimes tenants may withhold rent or part of their rent is there is an unresolved health or safety issues. If this is the case, non-payment is not grounds for eviction.
Accepting Partial Rent Payments: If you decide to accept partial payments on rent, eviction may be a bad idea. Since you are accepting payment, you have waived the right to evict. If you have already filed for eviction, do not accept any more payments or you may have to restart the whole process.
These are just some examples of situations where evictions may not be a good idea. Working out a payment plan, offering a “cash for keys” deal are just a few options you could explore. Keeping good tenants is always better, even if they are going through tough times. If you do decide that eviction is your best course, always make sure that the law is on your side before you dive in to the process.
