Did you know over 500,000 Americans are evicted every year? An eviction is the action of expelling someone, especially a tenant from a property due to lack of rent payments, violation of the lease agreement or the expiration of the lease. The eviction process is an expensive legal procedure used to evict a tenant based on the city, county and state landlord tenant laws. There are 5 ways to prevent an eviction and keep the cash flow coming in every month!
- Proper Screening
The best way to evict a tenant is during the application process. Whether you are managing your property or a property management you must properly screen each applicant. Background checks, criminal checks and rental history are three important steps to take when considering a potential tenant. Credit, income and employment verification are also important to determine if a tenant is fully capable of paying rent on time. Most real estate investors require a 650+ credit score and a minimum of 2.5-3 x the rental rate from employment.
2. Build Relationship
Contact tenants and set the expectations. Many real estate investors never meet their tenants. This can be a big mistake. Set the tone from the beginning that you are a professional and will not accept any violation of the lease agreement. Enforce late fees and follow the lease throughout the duration of the contract.
3. Quality Renovations
High quality tenants attract high quality renovations. Clean properties with updated renovations including fresh paint, flooring, appliances, fixtures and hardware generally attract high quality tenants.
4. Routine Inspections
Regardless of management it is the responsibility of the real estate investor to make sure the property is being maintained and well kept during the duration of a lease. Routine inspections are very important to ensure your property remains in good condition. Inspections send a message to the tenant that you are a professional and that you care about your property. Document any major damages you may find during routine walk through and inspections.
5. Cash For Keys
Cash for keys is an alternative to eviction. Rather than going through with the lengthy eviction process, property owners can offer to pay tenants a sum of money as an incentive to move out by a certain date. Cash for keys are a less expensive and stress free “eviction” process.
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