Tenant evictions can make it hard to profit from your rentals. It’s a long process and it can cost you money upfront, along with lost rental payments. If you want to avoid tenant evictions, you need the right strategy.
With the right tips and strategies, you can make sure you don’t have to deal with tenant evictions very often. Sometimes, it cannot be avoided, but you can do things to make sure you only deal with evictions on rare occasions. Here are some of the best ways to help you avoid tenant evictions.
Top Tips for Avoiding Tenant Evictions
1. Screen Properly
The screening process before you sign a lease with new tenants is the best way to avoid tenant evictions. Make sure you do a full background check, rental history check, and credit check. You should also verify employment and income before you decide to rent to any new tenants.
Make sure you actually do the verifications and get these reports yourself. Don’t trust potential tenants to get them for you, as they could try to fake these reports.
2. Keep Repairs Up-to-Date
A well-maintained rental unit can help ensure tenants don’t have to be evicted. They will be more likely to pay rent on time if you take care of the property. Putting off repairs can cause renters to feel likely they are allowed to withhold rent.
In some states, it’s actually legal for a tenant to withhold rent payments if you don’t make essential repairs. If you don’t take care of the right repairs, it’s actually a violation of the lease.
3. Waive Late Fees
While you don’t want to make a habit of waiving late fees, you want to get the rent paid without an eviction. If a tenant is normally on time but is currently late, offer a longer grace period. Maybe they have a three-day grace period before a $100 late fee kicks in. Offer them another three days or longer to pay the rent without a late fee, if they usually pay on time.
4. Use the Cash-for-Keys Strategy
If you need to get a tenant out, but you don’t want to go through the courts with an eviction, you can offer cash-for-keys. Make an arrangement to pay a specific amount if the tenants can turn over the keys and move out.
This might work best when you plan to sell the home or you know they cannot pay the rent. It can often be cheaper than going through with an eviction lawsuit, especially if the tenant damages your property.
5. Hire a Good Property Management Company
One of the best ways to avoid tenant evictions is by hiring a good property management company. Not only will your property management team make sure the property is well-maintained, but they will also properly screen your tenants. Plus, they will likely have strategies in place to avoid tenant evictions.
Use these tips to help you avoid tenant evictions as a landlord. It can save you money and time, along with leading to better tenants.