Greetings Informed Readers!
Today we are going to talk about a topic that no landlord ever wants to deal with but that most if not all property owners will eventually deal with: Evictions. But if you have had to deal with this you may have wondered…Should I Evict My Tenant?
The Best Defense is a Good Offense
The wise and educated income property owner knows that the best defense against evictions is a good offense. That’s why tenant screening is the most important thing you can do to protect your investment. Rookie real estate investors just want to get somebody in their property as fast as possible and paying the most money possible with the highest deposit possible. This combination is great and always desirably but doesn’t always lead to the best tenant. People know what they are worth and often those who are paying top dollar are doing so because they are worried you will dig too deep and find something about them that will make you reconsider renting to them. Of course this does not mean you should not accept top dollar by any means, rather that you should do your homework on the tenant regardless of whether they are a tough negotiator or just dumping cash on your desk. Of course a professional property manager will dig even deeper that most owner but lets save the sales pitch to the end of the post!
So once you (or your property manager) has fully vetted the incoming tenant and they are considered a low risk there should be no risk of an eviction right? Maybe in perfect world or a Disney movie but in the cold hard real world stuff happens and even the best tenant can hit hard times and stop paying rent. So what do you do when a tenant stops paying? The first mistake that most rookie income property owners make is waiting too long to serve the 3 Day Notice to Pay or Vacate. This notice should be served immediately if rent is not paid by the due date or the final day of the grace period. Regardless of whether or not you are going to proceed with the full eviction or if you want to work with your tenant serving the 3 Day Notice promptly will legally protect your right to proceed with the eviction should you so desire. By the way Real Property Management Miami will take care of your 3 Day Notice for you, that is why you hire a professional.
Good Tenant Vs. Bad Tenant
If you have a good tenant then when the 3 Day notice is delivered it should be accompanied by an attempt to communicate with the tenant so that if there is any possibility that the tenant can make their payment within the 3 days that is what happens. Or if they are a very good tenant you can even give them a couple more days. This is because even though it is your right to evict a tenant who does not pay rent, as long as they are a decent tenant otherwise, it is in your best interest to keep them in the property. The eviction process can be lengthy and costly and finding another good tenant can take time so if you have a good tenant you want to pressure them to pay and protect your rights but your ultimate goal is to get them to pay.
But this is where it can get real tricky, because sometimes there are wolves in sheep’s clothing.You should never wait more than 1 week to receive your rent under any circumstances (unless maybe the tenant is your mother). We have heard so many horror stories of rookie property investors who feel bad for their tenant because they lost their job or they got sick and these things are very sad but the reality is you are running a business to make a profit not a charity. If you are running a charity then that is sweet and the world needs people like you but you are reading the wrong blog. And the truth is that if you feel sorry for your tenants and don’t make them pay then you are going to go broke.
Now if you have a bad tenant then you should not go out of your way to work with your tenant because you are not legally obligated to do so. The law that supports the rights of landlords is simple: if a tenant does not pay the rent that is owed within 3 days of receiving a 3 day notice then the landlord may begin the eviction process with the courts. Tenants have strong rights and attempting an eviction for a reason other than non-payment of rent can be very difficult. So if you have a bad tenant then just fulfill your legal obligations as far as is necessary and then leave it up to the tenant to do what they need to do. If they don’t then you can get rid of a problem and work on finding a better tenant.
So what determines whether a tenant is good or bad? You will know when you have a good one because you won’t hear from them much and your rent will always be on time. And you will definitely know when you have a bad one!
Insurance was invented because invariably and without fail stuff always happens and when it does you will surely not call it stuff because the word stuff does not come close to describing what happens when stuff really happens. But this is a family blog so lets keep G-Rated! So is there eviction insurance? Funny you should ask! Real Property Management Miami offers an Eviction Protection Plan that allows you to dedicate a small portion of the monthly income your property produces towards a plan that will cover the costs of an eviction should it be required. Evictions are costly and stressful but the Eviction Protection Plan makes the cost more manageable and gives you the peace of mind that should stuff happen you will be prepared.
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