Eviction: The Other Way To Handle It

9 February 2010 | talking about Land Lording, Real Estate

Eviction ImageEveryone thinks being a landlord is all fun and games. You sit back each month and just let the money roll in. I have even talked to some landlords that complain about what a pain it is taking all their rent money to the bank each month. Don't get me wrong, being a land lord can be a very rewarding job, part time or full time, but this week has been particularly hard for me as a landlord. Which reminds me there are times that this job is not very rewarding both emotionally and financially.

I had to evict a tenant this week for being over 30 days past due with rent. These days people are not past due with rent because they are just unwilling to pay rent, they are past due because they truly have no money. This particular tenant truly has no where to go nor the means to go anywhere. The particular labor market this tenant works in is just dry right now. There is no work. So I am left with a very big decision to make; Do I move forward with the eviction, or continue to hold out. Part of me says it is my American duty to help out others in this slow economy, and part of me (the business man) tells me I have to do what is best for my business.

Furthermore, I also have the problem of this tenant might not have anywhere to go. I can post 72 hour notice but the tenant will not leave because they have no where to go. Leaving me with the addition hassle of having to file papers with the local court and have the tenant removed. Normally, this is the best way to go because then you would get a judgement for the amount owed as well, but if the person is not working you will not have any means to collect anyway. So whats the point?

So, I think I found a middle ground. I have done this before in better markets as well. This option really stinks because it hits my pocket book twice, but it was the best thing to do both personally and business wise. What I did was offered the tenant a settlement to pack up and leave. Hand over the keys by a certain date and time and I will relieve the tenant of all debt and give the tenant a sum of money (cash) for handing over the keys. So not only does the tenant get out of 45 days worth of rent, and fees, this tenant received a cash bonus to get lost. This will allow the tenant to start fresh with no debt (from me), and have a little money to start fresh with. I then can get in the property and quickly get it back on the market. Even in easier markets this is a good way to get a tenant out instead of going through the court system. Don't feel trapped by the court system, it can be overwhelming, there are other ways.

On, a fresher note, we have been making great progress on RentalBooks. We are really excited about finally getting this product to market. We are are shooting for a release in May.
 

tags: real estate, land lord, tenants, property management

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