The Best Way To Protect Yourself From A Costly Eviction

WHAT PREVENTATIVE MEASURES ARE YOU TAKING TO PROTECT YOUR PROPERTY?

Evictions stink…there’s no doubt about it. In many states, eviction rates have increased dramatically in recent years. For landlords wary of the costly ramifications of having to work through the legal system to remove a non-paying tenant, their anxieties are not misplaced. Higher real estate prices have led to higher rents and tenants are being asked to contribute more of their income to housing than was necessary in years past. So what do you do if this is the current trend across the country and there’s no sign of change?

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PREVENTATIVE CARE

“Preventative Care” is one of those buzz terms these days when it comes to personal health. The idea is pretty straight forward and it applies just as well, if not better, to the way you treat your investment properties. If you defer maintenance and other improvement costs along the way you’re overvaluing the savings of today for the problems that inevitably await you tomorrow. Yes, this means more expensive rent ready turnovers, but it also means a less enjoyable experience for your tenants, and that is where we want to dive back into the topic of evictions from.

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THE 2 BEST WAYS TO PREVENT EVICTIONS

There are three avenues that you can take to significantly decrease the odds of having to file for an eviction. Not coincidentally, all three of these time-tested preventative strategies are at your fingertips when you hire a reputable property manager.

1. OPTIMIZE LEASING

The number one, most important thing you can do to significantly reduce the chances you’ll face an eviction is to place the right tenants. You need to list the property in a way and in the places that will attract the best match for your vacancy. You’ll want to have some pre-qualifying strategy to vet candidates and then you’ll need to do complete background checks once they’ve applied. It’s also essential to verify their income so you can ensure they can truly afford the rent price. Typically, tenant candidates should be making around three times the rent amount per month. If they’re not, they might be happy to live in your unit and they’ll likely pay on-time at first, but eventually their inability to afford the other things in life are going to be a problem. It’s also helpful to get a sense of what they’ve paid for rent in the past. This also helps you assess their ability to pay.

As noted, a reputable property manager, unlike a typical realtor or landlord doing it themselves, has experience placing renters and will best be able to assess the reliability of tenant candidates. By hiring a property manager, you’re investing in a professional today so you don’t end up paying for an eviction (and the headaches and downstream costs) tomorrow.

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2. RESPOND PROMPTLY TO MAINTENANCE

If you want tenants to pay their rent on-time consistently it’s essential that you respond to service requests they might have promptly. That doesn’t mean the answer is always yes, but by responding quickly you’re letting the tenants know that their concerns are your concerns. You’re showing that you value their needs and that you’re paying attention to their well-being. It’s much easier for a tenant to accept a “no” when you respond quickly and ask follow up questions. In this way they see you as a partner. When they see you in the opposite light, as an adversary, the odds of eviction or some other conflict increase dramatically.

Along those lines, the answer should be “yes” more often than it is “no” in most cases. The more you reject maintenance requests, which more often than not are to improve your own property in addition to the experience of your tenants, the more likely the tenant is to feel they’re getting the short end of the stick…and the more likely they are to withhold funds or devalue their relationship with you.

If you hire a property manager, tackling those maintenance issues becomes much, much, easier…and you have someone else as a middleman, which has added benefits.

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CONCLUSION AND NEXT STEPS:

As a property management company that’s been in the business for over a decade, we specialize in cultivating strong relationships. Nexus Property Management® has been managing multi-family and single family properties since 2013. We continue to craft and perfect our best practices around win-win solutions for clients and tenants alike. If you’re interested in learning more about Nexus’ services and you're in one of our many territories, contact any of our teams across Arizona, Connecticut, Massachusetts, and Rhode Island.

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Mick Lefort is the General Manager of Nexus' New Haven County Franchise Office and the Vice President of Operations for Nexus Property Management®, a National Property Management Franchise that manages all types of rental property from single family homes or condos to large apartment buildings and complexes.

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