In this episode, Dr. Matt Motil talks about evicting tenants.
Before we start — disclaimer — I am not an attorney, consult your state’s landlord/tenant laws. It’s different in every state.
It’s not a bad as everyone thinks.
I’m from Ohio, so many of the examples are going to be Ohio tenant/landlord related.
Let’s get started…
1. Issues with Tenants and How to Handle it
If you have a good contract that has stipulations in place, you are able to get rid of a tenant if they don’t follow the contract rules.
It is so important to place good tenants up front! A vacant property is better than a property with a bad tenant.
You want it to be a win-win situation for both you and your tenant.
You have to meet in the middle with the tenant, so everyone is happy.
It’s a people thing.
Sometimes this means working with the tenant, and setting up payment plans and making sure they are followed through.
2. The Value of Having a Good PM
It is so important to have a PM because they take care of the tenant process.
Your PM will be the person who tells the tenant they need to evacuate the property no matter their excuse.
Unless you are completely heartless, it’s hard to hear someone’s sob story (lost a job, child is sick, etc.) and not try to help them.
This is your PM’s job!
It’s going to suck no matter what.
3. The Eviction Process
It is cheaper to work with a tenant and have them perform than to evict them.
An eviction in Ohio is around $400-$500.
Your attorney costs are going to be about 90% of that.
You are going to have court costs.
If you have a property manager involved, there will be a lease up fee to lease up that unit again.
If there is any repairs needed for the property to be rent ready again, you have to add that cost.
There is a cleaning fee.
Your time is involved. How much is your time worth?
Meanwhile, you are losing rent when the property sits vacant while doing all this.
For Ohio, you have 3 days after the rent is late.
You can post a notice that says “if you don’t pay the rent or vacate the property within this time period than we are going to file eviction notices with the court.”
After the 3-day period, if the rent is still not paid or the stuff isn’t out of the property, you can take the paperwork to the court.
The court assigns you a date for the eviction court.
The court serves notice to the tenant.
During this time, the tenant can choose to move.
Tenants either show up or they don’t.
4. Cash for Keys
The cash for keys concept can get your property back in a fairly quick amount of time, but it doesn’t work for everyone.
You go to your tenant and explain how they don’t want to go through the eviction process. Most tenants don’t know that it will go on your record and will be more harder for them to obtain a rental again.
The problem is the tenant doesn’t have enough money to stay in your unit or move somewhere else.
When you want to move somewhere else you usually have to pay first months rent as a security deposit.
Tenants will go through the eviction process just because they don’t know what to do.
This is a two month process to get the unit back.
Depends on the situation, but sometimes its better to just go to your tenant and see what they need to get out of your unit.
Pay them what they need and give them 1 week to move out.
It’s a win-win situation with less time involved.
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