Navigating Evictions

Evictions are an unfortunate part of managing rental properties. With 16 years in the rental property business, my wife and I are no strangers to evictions. We’ve had a couple in our out of state properties that were handled by our property management company. Closer to home, we’ve posted the required “notice to quit” seven-day notice on several occasions. We maintain a reserve earmarked for eviction costs if necessary.

What we’ve found is that most tenants, when given notice, will either cure the default within the prescribed time or choose to abandon the premises. Responding to the 7-day notice, one way or the other, is almost always in their best interest as a court ordered eviction remains in the tenants’ record and could limit their ability to obtain quality housing in the future. Unfortunately, late last year we had to follow through with the eviction process all the way to court.

There is absolutely nothing pleasant about an eviction, especially when it is occurring over the holiday season. From tense communications with the tenant to appearing in court, the process is stressful for all parties involved. Fortunately, this particular matter was resolved, and we regained possession of the property.

Beyond being a realist and understanding that no matter how well tenants are screened, evictions will inevitably happen, there are some key points to remember during the eviction process. The following are my top three.

CYA (Call your Attorney). While I am a chronic do it yourselfer and evictions do not technically require the assistance of an attorney, I cannot imagine going through the process without one. There is an awesome attorney in our town who specializes in evictions. She and her staff know the process inside and out. Much better to pay a professional and get it done right! From answering a myriad of questions about the process to ensuring the paperwork is perfect and legally sufficient, our attorney made the process as smooth as possible. Of course, this service comes at a price, but money well spent in my opinion.

Communicate with the tenant. The eviction process is emotionally charged, but a landlord, must remain professional. I’ve found in these situations; less is always more. Let the written notices do the talking. Answer specific questions, as necessary, but don’t get in a debate or let emotion take over. Email, text or written communication establishes a record versus a phone call. Above all, remain empathetic. Communicating in a tense environment takes a certain level of maturity and patience. If this sounds too uncomfortable, then probably better for an investor to turn the rental portfolio over to a property management company!  

Evictions are business losses. Simply put, eviction is cutting a loss. There is seldom a scenario where a landlord will break even on an eviction. Understanding this from the beginning is important. It is possible to seek back rent and court costs from a tenant, but seeking monetary damages requires additional legal action. It is best to take the loss, regain possession of the property, and move on in my opinion. Many of the costs of eviction can be deducted as rental activity expenses for tax purposes. I said it once I’ll say it again, nothing about an eviction is pleasant!

Lastly, not directly related to evictions but more on the leasing process, always, always, use a tenant screening service when considering prospective tenants. We’ve used TransUnion Smart Move for almost a decade but made an exception to our business practice in this particular case and paid for it. The best way to avoid evictions is to ensure, as much as possible, you’re renting to the best qualified tenants. 

Interested in rental property investing? Look for Collect Rent, Don’t Pay It: A Beginner’s Guide to Rental Property Investing on Amazon to learn how our family turned rental property investing into a successful side hustle!

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