We know that evictions are costly for both landlords and tenants (both financially and sometimes emotionally), but recently I overheard two investors arguing about who should do the eviction. actually lose Landlords have to go through the costly process of eviction, and tenants Expensive The process of losing a place you can call home.
I’ve heard both arguments, a bit For them, further research is needed to resolve this debate.
Total costs of a landlord eviction
wonderful The breakdown of eviction costs has already been Written about Another article from BiggerPocketsSo, I’ll just summarize it briefly here.
- Attorney’s fees: You may need to hire an eviction attorney to help with the paperwork, so be prepared to pay at least $500 for an uncontested eviction.
- Court costs: The average court cost for an eviction case is about $50, and this amount is expected to increase if the tenant contests the eviction and the case drags on.
- Sheriff Fees: If you win the eviction hearing, you may need to hire a sheriff to help evict the tenant, which can cost anywhere from $50 to $400.
- Rent loss: Depending on where you live and how long it takes to evict your tenant, you could lose anywhere from one to several months’ rent. JiroThe average rent for all property types in the U.S. in 2024 is $2,100. For simplicity’s sake, let’s assume you lose three months’ worth of rent between the time of eviction and finding a new tenant. Estimated cost: $6,300.
- repair: Luckily, repair and cleanup costs after an eviction aren’t too expensive. For simplicity’s sake, let’s assume the total cost is $1,500.
Total cost
The total cost varies depending on the property and location. Anywhere Between $4,000 and $8,000. If you’re lucky, and you hire a good property management company, This cost can be dramatically reduced.
Total costs of evicting a tenant
The resident be ordered to leaveUsually it’s because they haven’t paid rent or are in breach of their lease. In some wayIn these cases, tenants will likely lose their security deposit, which can range from 50% to 100% of the monthly rent. Using the average rental prices from Zillow, we can estimate this cost to be between $1,000 and $2,100.
Tenants will also incur moving costs. According to Angie,average Fee The cost of moving a rental property ranges from $400 to $3,000.
On the other hand, it also places a huge mental burden on the tenant. Studies published in 2022 Preventive Medicine Report We linked eviction to poorer mental health because stressful events can cause further anxiety and depression in displaced people.
That means residents could lose between $1,400 and $5,100 on average, and incur significant emotional costs that are hard to quantify.
The total economic cost of evictions
Eviction but also Affecting landlords and tenants butOverall, it could also have an impact on the economy. According to U.S. Department of Housing and Urban Development (HUD)Rising eviction rates are directly linked to increases in homelessness and can lead to reduced productivity in the workplace as evicted tenants must deal with the effects of their situation.
If we add up the total costs of evictions to both landlords and tenants and multiply the result by the number of evictions per year, we can calculate the minimum economic impact that evictions have on the overall economy. Using what we’ve outlined, the total costs of evictions to both landlords and tenants are estimated to be between $5,400 and $13,100. An estimated 2.7 million households face eviction filings each year..
So, if you multiply the minimum eviction cost of $5,400 by the number of evicted households, 2.7 million, AnnualEvictions are estimated to negatively impact the economy by at least $14.58 billion per year.
Although this is a rough estimate, the total losses of all parties should not be ignored.
Result: Everybody loses
Eviction is a lose-lose scenario for everyone. And sometimes InevitableHowever, you can minimize its occurrence by following these steps:
How to prevent eviction as a landlord
Whether you Are you planning on hiring a property management company or managing it yourself? My BiggerPockets offers resources to help you succeed in property management. Here are some proven tactics to reduce the chances of eviction.
Screening tenants properly
Probably the most important The step is the tenant screening process. Selecting the right tenants based on background, credit and income May be significantly reduced This will increase the likelihood of problems in the future. When screening tenants, keep the following in mind:
- Set the minimum requirements. Typically, landlords require tenants to earn at least three times the rent. Similarly No eviction history and a minimum credit score. this teeth good Starting point.
- Ask for a reference: Speaking with your tenant’s previous landlords is a great opportunity to find out how they would act as a tenant in your property.
There wonderful If you want to check out the BiggerPockets article Learn more about rental screening.
Make sure your tenant understands the rental agreement agreement
In some cases, legal documents Boring to readand many people ignore the details. It may be wise to go through the agreement with your tenant and explain and ensure each section is understood. Completely Understand the contract you are signing.
if You want to know what to do Included In the rental agreementPlease give it a read. This article.
Automate your rent payments system
instead of I have to chase To help you remember to pay your rent each month (or give them a check), you or your property manager can set up automatic rent deductions using platforms like: Base Lane or Rent LadyThese platforms help automate the rent payment process by automatically debiting rent from tenants’ bank accounts each month. this It (hopefully) ensures that rent is paid on time, every time.
Resolve maintenance issues as quickly as possible Yes
Tenants don’t like landlords who take forever to fix the sink, shower, or a broken air conditioner in the summer. Maintenance issues will frustrate your tenants. Resolving problems as quickly as possible will build trust between you and your tenants, making them more likely to renew their lease when it’s time to renew, ultimately lowering your occupancy costs.
Get local information law
Tenancy laws may change. important Stay Latest To ensure you are in compliance, understand your landlord and tenant rights in your area.
Rent a great property manager
If you don’t manage your property yourself, Your property manager A good property manager will properly screen tenants, ensure they understand the lease agreement, implement an automated rent payment system, resolve maintenance issues as quickly as possible, and stay up to date on local laws and regulations. If you need help finding a good property manager, Feel free to Using BiggerPockets Property management company search.
More time to scale
Find a property management company you can trust and get everything you need to make a hiring decision with confidence.
BiggerPockets notes: These are opinions expressed by the author and do not necessarily represent the opinions of BiggerPockets.
