Did you know that the best landlords have decades of building their rental portfolio with only a handful of evictions they’ve ever had to file? How in the world do they do this?
Let’s first look at a typical eviction by, say, a Bob Jones. Bob has one property that he rents because he bought a new place when he got married. Easy cash flow, right? With little research or experience, he jumped right in. Let’s review the eviction process for Nashville and the other counties subject to the Uniform Residential Landlord and Tenant Act.
Bob’s tenants have through the 5th of each month to pay rent before he can levy his 10% (max) late fee. Unfortunately, Bob’s tenant maxed out his credit card and cash to buy a new Mustang, so rent money didn’t get first place this month. (Tenants almost always have the money… They spend it elsewhere, first!) Thankfully, Bob has a decent lease that includes a clause to waive the tenant’s 30 day notice of eviction. Bob waits a week hoping the tenant will come current.
All along, the tenant makes repeated promises to mail the rent, drop the rent off, he gets paid Friday… The list goes on. Bob, being more proactive than most landlords, heads down to the courthouse to file for eviction. He doesn’t claim any rent money, he just wants his house back! Ouch. $130 goes to the sheriff for filing fees.
A little under a week later, the sheriff has served notice, and the court date is in a week– almost the end of the month! Where did the time go?
The tenant has kids, hardships, and the judge gives some leeway. They are to vacate the property in 2 weeks. Bob has lost a month and a half of rent, and who knows what kind of condition the property will be left in!
Most tenants will be out by this time, but sometimes the final step must be taken to file a Writ of Restitution and have the sheriff physically usher the tenant out of the property. More money, more time… You get the picture.
A Better Way
Here’s your golden nugget: All this might have been avoided if Bob had negotiated with the tenant. In fact, that’s exactly what the most successful landlords do.
Every situation is different, but realize that a bad tenant may have slipped through your screening. Roughly 90% of late tenants will never become timely payers, so there’s a 90% chance you simply let a bad tenant slide under the radar. Your next step is to promptly contact the tenant (perhaps the 2nd of the month or the 6th, depending on how aggressive you want to be) with a phone call.
Ask them what’s going on. Learn about the situation. Be on their side. Consult. Above all,
Negotiate.
“Mr. Tenant, it sounds like this may not be the best fit for you. How soon could you vacate the house if I were to simply take this month’s rent out of the deposit?”
Or,
“Mr. Tenant, I’m happy to say I’ve only had to evict two tenants in my days of having rental property. The thing of it is, with eviction the attorneys win and you and I both lose. They get paid and we waste a lot of time. Not to mention, your bill only grows the more involved the court is. Would you really want a judgement or garnished wages hanging over your head?”
“No.”
“I don’t want that for you either. I can work with you. I can give you until ________ to pay rent and late fees. If I don’t receive rent by 5 pm that day, I’ll take that to mean you don’t live there anymore. Sound fair?”
Sometimes you can help a tenant with creative payment terms. After all, it’s better than a month and a half of lost rent and an apartment to clean and fix, right? With the eviction process, everyone loses. But if you are proactive and seek out a win-win with the tenant, you can minimize your lost profits. In the long run, increased turnover is reduced profits.
Remember: Tenant screening is everything, and your fire-proof property management systems are your back up. Happy renting!
To get content such as this article straight to your inbox, drop your info in the sign up form in the sidebar to the right. —->
If you simply don’t want to deal with tenants anymore and you want out, Skyline Home Solutions can make you a cash offer in 24 hours. We’ll take the property as is, no matter the tenant situation or property condition. Call us at 615-455-5979 or drop your info here for a call in as little as a couple hours.