Hi, this is Tanya with Envy Property Management. In today’s video, I’m going to tell you the ugly truth about tenant evictions. The word eviction is absolutely a 4 letter word in the world of property management. And while hiring a professional property management company will help mitigate this risk significantly, it’s never a guarantee. At the end of the day, no matter how thorough you were with screening your tenants before placing them, you aren’t in any way in control of the tenant’s financial situation or sudden life events that may occur. When dealing with an eviction on your investment property, you’re experiencing one of the most stressful periods involved in owning rental properties. So today I want to remind you of some key truths that you need to prepare for when going through the eviction process.
#1: Keep it Neutral
The very most important thing to remember during the eviction process is to keep it neutral. This is a business transaction, and you don’t ever want to make business decisions based on how you are feeling. It is stressful, it is frustrating, but you have to avoid getting emotional and taking it personally. Nothing good ever comes out of emotional heated reactions.
The consequences of an emotional reaction can be more devastating than the eviction itself. You could find yourself in a heated argument or even worse, served with a restraining order. Worse things can happen if the situation escalates because you let your emotions take control of the situation. Remember, your rental property is a business, and you need to treat it that way. Take the required actions through the court system if your resident isn’t paying rent. Follow the law and the established court procedures in your area. Don’t ever go to the property and try to handle it yourself. That’s not you’re job, and it’s not the business you’re in.
#2: Follow the Lease Agreement
One of the most important things to understand when your tenant isn’t paying rent, is you have an obligation to enforce and follow through on your rental contract when you begin the eviction process. You don’t have the option to pick and choose which date you send the Notice to Pay or Vacate, and you can’t arbitrarily decide when you’re going to go to the courthouse to file the eviction. You are contractually obligated to follow through on the rental agreement both you and your tenant signed. Never ever make decisions based on what that resident is promising.
Your lease agreement is a rental contract that’s signed by you and your resident. Make sure you always refer to your lease agreement when you’re evicting. If your resident doesn’t pay rent as agreed, you must act in accordance with that lease. Always treat your rental property like the business that it is, and make the eviction process a consistent part of your policies and procedures. Don’t bend the rules, and never ever react based on tenant promises.
#3: Don’t Accept Partial Payments During the Eviction Process
It’s important to remember that when you are involved in an eviction, you should never take partial payments. Once you file that eviction in court, you’re evicting for a certain amount of overdue rent and fees. Acceptance of a partial payment means you’re no longer evicting for the same amount filed in court and this can delay the process significantly. If you have an online tenant portal, disable the option to make partial payments.
Make a policy to never accept partial payments. Once the process has started and the documents have been filed in court, a resident will have to pay everything in full. That includes the overdue rent, court costs, legal fees, and filing fees.
Be very aware of fair housing violations during this process. Understand, that you cannot bend the rules and allow one tenant to make a partial payment but not another. This is discrimination, and you can be charged with a fair housing violation. To avoid getting hit with a violation, always be consistent and don’t ever accept partial payments. The only way your resident can call off the eviction is with a full payment that includes all applicable fees.
That’s it for today’s video, I hope this information on the ugly truth about evictions was helpful. If you want help choosing a Northern Utah property management company with years of experience, please contact us at Envy Property Management. We are a wealth of information when it comes to professional property management of your investment property. You can always ask us for some valuable tips and extra resources to make the choice simple and painless. Give us a call today, 801-337-4337 or visit our website at envypm.com where you can easily view our three-tiered pricing plan, so you can choose the package that best fits you and your needs.