What if the tenant stops paying?
Rents are due on the 1st day of each month, but not penalized until after the stated grace period on the lease agreement, if the rent has not been received by close-of-business on the grace period.
The day after the grace period of each month, our customer service representatives put on their debt collector hats and start calling and sending legal document. Soon after, we deliver pay or quit demand notices to the tenants to pay rent and late-fee amounts due, or vacate, for all tenants who failed to communicate and/or decide to pay rent and late fees. If we still don’t hear from the tenant after the 3-5-day demand letter, we will start the legal proceedings for an eviction.
How much does an eviction cost?
Costs can vary, but the typical eviction is $699 – $1500 for attorney fees and $60-$180 to serve the tenants. Both the eviction costs and the service to the tenants are a cost that is passed onto the tenant. Sometimes they have enough deposit to cover the costs, other times we have to get a judgement against them and begin collections. It would be a good idea to seriously consider the eviction protection plan offered by our organization to help limit your out of pocket expenses should an eviction be necessary.
What is Eviction Protection?
For years investors have asked us, “Why don’t you offer eviction protection like your competitors”? Our response has always been, 1) Real Property Management’s annual eviction rate has never exceeded 1-3%. 2) Our clients demanded this service, so we added it. They want peace-of-mind and the ability to budget an annual flat amount rather than take the risk of an expensive eviction. Let’s face it, regardless of how well tenants are screened, a very small percentage do get evicted. A change in circumstance, like a divorce, loss of employment, or health, can have a drastic change on good people’s lives and their ability to pay rent. If this is something you are interested in, just opt in for the service when signing or renewing your rental management agreement.