The High Co$t of Evicting Tenants

Posted by Teresa on January 9, 2012 under Eviction | Be the First to Comment

tenant background check, tenant credit checkThe last thing most landlords and tenants want to face is an eviction. For landlords, it’s messy, time-consuming and can be costly. For tenants, eviction can hurt their chances of renting another home, and could even leave them homeless.

There are ways to prevent a landlord-tenant relationship from ending in eviction, including proper tenant screening and conducting thorough tenant credit checks. But even good tenants lose jobs or have unexpected medical bills that can lead to difficulty paying rent. And when they stop paying rent, and won’t move on their own, eviction is the landlord’s legal recourse.

Depending on the state you live in, landlords are typically required to follow a strict protocol and process of notifying a tenant of impending eviction. Whether or not the tenant decides to fight the notice will determine whether the process goes quickly or drags out. The latter will add time and legal fees to the landlord’s case.

Other legal fees a landlord typically encounters in an eviction case include unlawful detainer for each adult in the rental unit, judgment, garnishment and service fees.

If you win your case, you then must remove the tenant from the property. In most states, you cannot just throw a tenant’s belongings out on the sidewalk. Typically, local law enforcement serves a notice and gives the tenant several days to leave. If they don’t, they will be removed by law enforcement.

In a few states, landlords are allowed to dispose of property a tenant leaves behind, but in most places, you’ll need to store the tenant’s property and follow proper notification procedures. In New York and New Jersey, for example, a landlord must store an evicted tenant’s belongings for 30 days, resulting in additional costs that are rarely recovered.

Expenses for cleaning and repairs add to the losses experienced by the landlord, since any security deposit paid by the tenant has likely been offset by loss of rent and legal fees.

By properly pre-screening tenants, offering an iron-clad lease to qualified applicants, and requiring strict adherence to rent due dates, landlords can establish a business model that lessens the chances of eviction—and saves them significant money and time.

Landlords: Five Reminders to Help With Eviction Jitters

Posted by Teresa on November 2, 2010 under Landlord Tips | Be the First to Comment

tenant screening, tenant prescreening, tenantscreeningblogExperienced landlords know that into every investment property business an eviction or two will fall. Okay, so that’s a stretch from the old adage, “into every life a little rain must fall,” but it illustrates our point: most landlords will experience the eviction process sooner or later.

If you’re a landlord who’s been fortunate to avoid evicting tenants so far, but are expecting that lucky streak to end soon, you may be experiencing some anxiety about the process. After all, times are tough and tenants everywhere are having a more difficult time with a job market that doesn’t seem like it will ever improve.

Here are a five things to remember when you face evicting tenants—an unpleasant task no matter how long you’ve been a landlord.

Are You Up to Evicting a Tenant? If you’re having trouble evicting a tenant who has failed to live up to the terms of his or her lease, consider that being a landlord may not be your cup of tea. Owning rental property can be a tough business; it takes a tough person to be successful.

Did you Buy an Investment Property or a Non-Profit Organization? Most landlords invest in property to make a profit. The few who don’t want or need to make a profit must be running a charity. If you’re not one of those, remember that you cannot afford to lose money on tenants who damage your  property, don’t pay rent on time, or won’t follow your rules.

Being Too Nice Hardly Ever Pays. When you allow tenants to call the shots, some of them take advantage. They sense weakness, which gives them permission them to behave badly. If tenants don’t pay rent on time or otherwise live up to the lease they signed, deal with the situation quickly and move on. Not only will it send a clear message that you are not to be taken advantage of, it also allows you to bring in better tenants. And remember to properly pre-screen all tenants before signing a new lease.

Drama is For the Stage, Not Your Investment Portfolio. Investing in rental property is a business decision. Running your business is not meant to be entertainment. Drama has no place in a business relationship between a landlord and tenant. Nothing in it is worth losing sleep or money over. Keep your relationship with tenants professional and do not allow your feelings to override your business decisions.

If Eviction is Necessary, It’s Not Because of Anything You’ve Done. Remember, you’re not at fault. Theoretically, both parties agreed to the terms of the lease. If you’ve held up your end of the agreement, and your tenant has not, you are usually well within your rights to move toward eviction. That’s why the law allows for eviction.

Of course, if you’ve never been through the eviction process or need legal counsel on how to deal with a problem tenant, it’s best to consult your attorney. Eviction jitters are easy enough to get past—and moving on is good for you and for your business!

Disclaimer:

The contents of this article are intended for general information purposes only, and should not be relied upon as a substitute for obtaining legal advice applicable to your situation

5 Things to Know About Evicting Tenants

Posted by Teresa on October 20, 2010 under Eviction, Landlord Tips | Be the First to Comment

tenantscreeningblog, tenant screeningEviction is typically the last step a landlord wants to take with a tenant. But it’s a reality in the real estate investment business. Most experienced landlords say the biggest mistake they make around eviction is waiting too long to start the proceedings.

So if you’re a landlord who is heading down the road toward evicting a tenant, here are 5 things you should know:

  1. Eviction comes after you legally terminate the tenancy. The requirements for giving a tenant notice that the tenancy has been terminated varies by state; every landlord should know the regulations in his or her state. Usually, a written notice is required, for example, a notice that the tenant pay the rent due by the 5th or the eviction lawsuit will proceed. (This is a “pay or quit” notice.)
  2. Every state has its own requirements for how eviction papers are written and served, too. Look up your state law on eviction; read it thoroughly. Ask an attorney to explain it if any statute or requirement is unclear.
  3. Many rental property owners advise new landlords to hire a landlord/tenant attorney to handle your first eviction to make sure that everything is done correctly. You don’t want your case thrown out of court because you’ve missed a legal notice or mixed up the number of days you are required to give the tenant to correct the problem.
  4. If your tenant fights the eviction, your case could take many weeks or months to go through the courts. Every notice, every complaint, and your history as a landlord could be scrutinized. It’s vitally important that you keep excellent records, treat every tenant equally and abide by your state and local laws throughout the entire eviction process.
  5. Depending on your state, you may have responsibilities after an evicted tenant moves out. In some states, the property owner is required to store a tenant’s left-behind property and notify them for a minimum time period before disposing of it.

It’s not easy to evict a tenant—for a reason. Forcing a person or family out of their home is not taken lightly. Be well-prepared if you must evict—and to reduce the probability of needing to evict, be sure to order a thorough tenant screening before you sign a lease with a potential tenant.

Legal disclaimer:
The contents of this article are intended for general information purposes only, and should not be relied upon as a substitute for obtaining legal advice applicable to your situation

Evicting Tenants: Be Prepared!

Posted by Teresa on August 27, 2009 under General | Be the First to Comment

law-and-gavel on tenant screening blogThe most common cause for evicting a tenant is probably nonpayment of rent. Experienced landlords do not hesitate to begin eviction procedures when tenants are in arrears on rent. So if you plan toever evict a tenant, then think like a Boy Scout—and be prepared.

Be prepared for excuses: You might hear about your tenant’s difficulties, whether from the economy, job loss, health, or even the weather. You could hear that there is damage or mold in the unit that renders it uninhabitable. You might hear any number of reasons why your tenant has not paid the rent—which is the only thing that matters. As landlord, you are entitled to decide whether or not to evict based on the tenant’s situation. Just be prepared for nonpayment of rent to occur again.

Be prepared with all the eviction paperwork required by your local court. Some want a copy of your deed, the lease, the exact names of everyone living in the rental unit (whether or not they are on the lease) and copies of all notices to pay rent or quit (evict). Your jurisdiction may want more information, so be sure to ask the clerk of court or magistrate’s office. You’ll also need proof of non-payment, so gather up all check copies for the tenant for at least the previous year.

Be prepared to hire a lawyer. If you have never evicted a tenant before, many experienced landlords would strongly recommend you hire a Landlord/Tenant attorney before proceeding with eviction. They can keep you from making crucial mistakes and losing your case.

Be prepared to spend money. There will be fees associated with preparing your case. And if you decide to hire an attorney, you will be responsible for his or her fee, as well.

Be prepared to follow the court’s procedures. The court will require you to fill out paperwork correctly and follow every procedure to the letter. If you don’t, you could have your eviction case thrown out and have to start again. Consider observing a day in court when they hear eviction cases—seeing other landlord’s eviction errors could help you avoid them.

Be prepared for a fight. Your tenant may not even show up for court. If so, you will likely win your case. But if they do appear, remember that tenants have rights, too, and are entitled to plead their case before the judge. Be prepared to defend yourself. You may hear things that will surprise you, but stick to the facts and avoid arguing or confrontation.

Eviction is never easy, but it is a part of being a landlord. Just remember to be well prepared for whatever surprises may come up!