Comments on: How to Avoid an Eviction

By: Rob

Rob — Thu, 28 May 2009 12:55:02 +0000

Did she ask about the security/option money at all and did she understand that she will not be getting this back?

Also, what happens if at the end of the month she is not out and then you have to start the eviction a month late? Is this just a risk you’re willing to take?

Did you get this agreement in writing so that if you have to bring it to court eventually you have proof that she was suppose to move out by the end of the month and you were not letting her slide?

Thanks Jason, love reading your articles.

By: Jonathan Rexford

Jonathan Rexford — Wed, 27 May 2009 19:54:45 +0000

Jason,

Good post. One caveat I would ad is also allow you to show the home while she is in there until its vacated. that way you don’t have to wait until she is out.

Of course always get them to sign a general release which is easy.

I had a lease option home about 4 years ago. Tenant was 2 months behind (I know) and was filing BK on some other stuff. I told her that I would give her Option money back if they moved. They moved in 3 days. Everything cleaned. It took 3500.00 but her option price on the home was 89K and the values had gone up well over 170K during the run up. I was afraid she would had bought the home.

Great post.

By: Joshua Dorkin

Joshua Dorkin — Wed, 27 May 2009 14:40:17 +0000

Business decisions may not always sound like the logical moves we’d expect folks to make, but if you’re doing a cost benefit analysis, you’ll see that getting a tenant to just leave is often times going to be a better financial decision than going through the eviction process. Great advice, Jason.

By: Brendan O'Brien

Brendan O'Brien — Wed, 27 May 2009 14:36:54 +0000

Excellent post, thank you Jason. We really ought to talk some day.

One thing I would add; when you are interviewing a prospect, make it clear that the lease is a full commitment. It’s not, “pay me $700 each month.” It’s, “pay me $8400 in 12 monthly installments.” Carefully explain that if they leave early, they are still responsible for the full amount.

Now realistically, we will almost never go after a tenant for a full lease amount if they have to leave early. The primary exception is, of course, commercial tenants which have not gone out of business, but simply decided to move.

But when you present it this way – and then offer to let them go, no problem, as long as they leave the place broom-clean – the tenant thinks, “wow, I was really treated well.” And they are more likely to treat you well.

By: Another Investor

Another Investor — Wed, 27 May 2009 13:39:06 +0000

I do exactly the same thing with a good tenant. I have one right now in that situation. The agreement is he leaves the place clean and cleans up the landscape “decorating” mess he made. Another tenant just lost her job and wants out of her lease a month early, but will be able to pay until she moves. No problem – she pays on time and the house is neat and clean.

Stuff happens to people, and you have to make the best business decision you can. You aren’t likely to get the rent anyway if you evict and get a judgement. The tenant is not likely to use you as a reference, because they can’t afford a new place, so you don’t have that problem. Get the place back in as close to rentable condition as possible, and get it rented.