{"id":177306,"date":"2024-09-06T14:57:13","date_gmt":"2024-09-06T20:57:13","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=177306"},"modified":"2024-09-06T14:59:23","modified_gmt":"2024-09-06T20:59:23","slug":"who-gets-hurt-from-evictions-more-tenants-or-landlords","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/who-gets-hurt-from-evictions-more-tenants-or-landlords","title":{"rendered":"A Look at How Much Evictions Really Cost You as a Landlord"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">We know evictions can be costly for both landlords and tenants (both financially and sometimes emotionally). But recently, I heard two investors discussing who <\/span><span data-preserver-spaces=\"true\">actually<\/span> <span data-preserver-spaces=\"true\">loses<\/span><span data-preserver-spaces=\"true\"> more during the process. Landlords go through the costly process of evicting, and tenants go through the <\/span><span data-preserver-spaces=\"true\">costly<\/span><span data-preserver-spaces=\"true\"> process of losing the place they called home.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I\u2019ve heard arguments on both sides, so I conducted <\/span><span data-preserver-spaces=\"true\">a little<\/span><span data-preserver-spaces=\"true\"> more research to settle this debate for them.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Total Cost of Eviction for the Landlord<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">A great<\/span><span data-preserver-spaces=\"true\"> eviction cost breakdown has already <\/span><span data-preserver-spaces=\"true\">been written<\/span><span data-preserver-spaces=\"true\"> about in <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-much-will-it-cost-to-evict-tenants\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">a separate BiggerPockets article<\/span><\/a><span data-preserver-spaces=\"true\">, so I\u2019ll quickly summarize it here:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Legal fees:<\/span><\/strong><span data-preserver-spaces=\"true\"> You may want to hire an eviction attorney to handle the paperwork. Expect at least $500 in an uncontested eviction.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Court costs:<\/span><\/strong><span data-preserver-spaces=\"true\"> The average court costs for filing an eviction are around $50. Expect this number to increase if the tenant contests the eviction and the trial drags on.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Sheriff fees: <\/span><\/strong><span data-preserver-spaces=\"true\">If you win the eviction hearing, you may need to hire a sheriff to help evict the tenant. This cost can range between $50-$400.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Lost rent:<\/span><\/strong><span data-preserver-spaces=\"true\"> Depending on where you live and how long it takes to evict the tenant, you could lose one to many months of rent. According to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/rental-manager\/market-trends\/united-states\/#:~:text=The%20median%20rent%20for%20all,types%20in%20US%20is%20%242%2C110.\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Zillow<\/span><\/a><span data-preserver-spaces=\"true\">, the median rent for all property types in the U.S. in 2024 is $2,100. For simplicity, we\u2019ll assume three months of lost rent between eviction and finding a new tenant. Estimated cost: $6,300.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Repairs: <\/span><\/strong><span data-preserver-spaces=\"true\">Hopefully, the repair and cleaning costs will not be too much after the eviction. For simplicity, let\u2019s assume a total cost of $1,500.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Total costs<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Depending on the property and where you live, you can expect your total financial costs to be <\/span><span data-preserver-spaces=\"true\">anywhere<\/span><span data-preserver-spaces=\"true\"> between $4,000-$8,000. If you\u2019re lucky and have a great property manager, hopefully, <\/span><span data-preserver-spaces=\"true\">this cost can be dramatically reduced<\/span><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Total Cost of Eviction for the Tenant<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">When tenants <\/span><span data-preserver-spaces=\"true\">are evicted<\/span><span data-preserver-spaces=\"true\">, it\u2019s usually because they haven\u2019t paid rent or violated their lease agreement <\/span><span data-preserver-spaces=\"true\">in some way<\/span><span data-preserver-spaces=\"true\">. In these cases, tenants will likely lose their security deposit, which can be anything from 50% to 100% of the monthly rate. Using the median rent price from Zillow, we can estimate this cost to be between $1,000 and $2,100.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Tenants will also incur moving costs. <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.angi.com\/articles\/cost-to-move-1-bedroom-apartment.htm\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">According to Angi<\/span><\/a><span data-preserver-spaces=\"true\">, the average <\/span><span data-preserver-spaces=\"true\">cost<\/span><span data-preserver-spaces=\"true\"> of moving rental units is between $400 and $3,000.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Meanwhile, there\u2019s a tremendous emotional cost to the tenant as well. <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.ncbi.nlm.nih.gov\/pmc\/articles\/PMC9502670\/#:~:text=The%20forced%20moves%20and%20housing,suicide%20(Mateo%2DRodr%C3%ADguez%20et%20al\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">A 2022 study published in <\/span><\/a><em><a class=\"editor-rtfLink\" href=\"https:\/\/www.ncbi.nlm.nih.gov\/pmc\/articles\/PMC9502670\/#:~:text=The%20forced%20moves%20and%20housing,suicide%20(Mateo%2DRodr%C3%ADguez%20et%20al\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Preventive Medicine Reports<\/span><\/a><\/em><span data-preserver-spaces=\"true\"> linked evictions with a decrease in mental health, as stressful events can cause more anxiety and depression among displaced people.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">All this means that tenants stand to lose, on average, between $1,400 to $5,100 and can incur substantial emotional costs that are hard to quantify.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Total Cost of Evictions for the Economy<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Evictions <\/span><span data-preserver-spaces=\"true\">not only<\/span><span data-preserver-spaces=\"true\"> affect landlords and tenants <\/span><span data-preserver-spaces=\"true\">but<\/span><span data-preserver-spaces=\"true\">, in aggregate, can also impact the economy.<\/span><span data-preserver-spaces=\"true\"> According to the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.huduser.gov\/portal\/pdredge\/pdr-edge-featd-article-031924.html\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">U.S. Department of Housing and Urban Development (HUD)<\/span><\/a><span data-preserver-spaces=\"true\">, rising eviction rates are directly linked to an increase in homelessness and related to a potential decrease in workplace productivity, as evicted tenants must deal with the impacts of their situation.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If we added the total cost of eviction to both landlords and tenants, multiplying the result by the number of evictions per year, we could establish a minimum economic impact that evictions have on the economy as a whole. Using what we outlined, the total costs of eviction to both landlords and tenants is between an estimated $5,400 to $13,100. <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.pnas.org\/doi\/10.1073\/pnas.2305860120\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">An estimated 2.7 million households receive an eviction filing each year<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">So, if we multiply a minimum total eviction cost of $5,400 by 2.7 million evicted households <\/span><span data-preserver-spaces=\"true\">per year<\/span><span data-preserver-spaces=\"true\">, we get an estimated minimum negative impact of $14.58 billion on the economy each year due to evictions.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">While this is a gross approximation, the total loss for all parties shouldn\u2019t be ignored.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Result: Everyone loses<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Evictions are a lose-lose scenario for everyone. And while sometimes <\/span><span data-preserver-spaces=\"true\">they can\u2019t be avoided<\/span><span data-preserver-spaces=\"true\">, their occurrence can be minimized by following the steps outlined below.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">How to Prevent Evictions as a Landlord<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Whether <\/span><span data-preserver-spaces=\"true\">you\u2019re<\/span><span data-preserver-spaces=\"true\"> planning on hiring a property manager or self-managing your <\/span><span data-preserver-spaces=\"true\">own<\/span><span data-preserver-spaces=\"true\"> property, BiggerPockets offers resources to set you up for property management success. Here are some tried-and-true tactics for lowering your chances of eviction.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Properly screen tenants<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Arguably, the most <\/span><span data-preserver-spaces=\"true\">important<\/span><span data-preserver-spaces=\"true\"> step is the tenant screening process. <\/span><span data-preserver-spaces=\"true\">Choosing the right tenant based on background, credit, and income <\/span><span data-preserver-spaces=\"true\">may significantly decrease<\/span><span data-preserver-spaces=\"true\"> your chances of problems in the future.<\/span><span data-preserver-spaces=\"true\"> Here are a few things to keep in mind when screening tenants:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Set your minimum requirements:<\/span><\/strong><span data-preserver-spaces=\"true\"> Typically, landlords will require tenants to have at least three times the rent amount in income, <\/span><span data-preserver-spaces=\"true\">as well as<\/span><span data-preserver-spaces=\"true\"> no history of evictions and a minimum credit score. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> is <\/span><span data-preserver-spaces=\"true\">a good<\/span><span data-preserver-spaces=\"true\"> place to start.<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Ask for references:<\/span><\/strong> <span data-preserver-spaces=\"true\">Being able to talk to a tenant\u2019s previous landlord can be a wonderful opportunity to learn how they\u2019ll act as a tenant for your property.\u00a0<\/span><\/li>\n<\/ol>\n\n\n\n<p><span data-preserver-spaces=\"true\">There\u2019s a <\/span><span data-preserver-spaces=\"true\">wonderful<\/span><span data-preserver-spaces=\"true\"> BiggerPockets article if you\u2019d like to <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-to-screen-tenants\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">learn more about screening tenants<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Ensure the tenant understands the lease <\/span><span data-preserver-spaces=\"true\">agreement<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Sometimes, legal forms can be <\/span><span data-preserver-spaces=\"true\">a bore to read through<\/span><span data-preserver-spaces=\"true\">, and many people gloss over the details.<\/span> <span data-preserver-spaces=\"true\">It may be wise to walk through the agreement with the tenant, explaining every section to them and ensuring they <\/span><span data-preserver-spaces=\"true\">completely<\/span><span data-preserver-spaces=\"true\"> understand the contract they\u2019re signing.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If<\/span><span data-preserver-spaces=\"true\"> you\u2019re curious about what should <\/span><span data-preserver-spaces=\"true\">be included<\/span><span data-preserver-spaces=\"true\"> in a rental agreement<\/span><span data-preserver-spaces=\"true\">, I recommend reading <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-to-include-in-a-lease-agreement\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">this article<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Have an automated rent payment <\/span><span data-preserver-spaces=\"true\">system<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Instead of <\/span><span data-preserver-spaces=\"true\">having to chase<\/span><span data-preserver-spaces=\"true\"> down your tenants for rent every month (or hoping they remember to give you the check), you or your property manager can set up automated rent withdrawals using a platform such as <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.baselane.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Baselane<\/span><\/a><span data-preserver-spaces=\"true\"> or <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/rentredi.com\/biggerpockets\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">RentRedi<\/span><\/a><span data-preserver-spaces=\"true\">. These platforms help automate the rent payment process by automatically withdrawing the rent from the tenant\u2019s bank account every month. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> will (hopefully) ensure rent is paid on time, every time.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Solve maintenance issues as fast as <\/span><span data-preserver-spaces=\"true\">possible<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">No tenant likes a landlord who takes forever to fix a sink, shower, or a broken AC unit in the summer. When maintenance issues arise, this can be frustrating for the tenant. Solving their problem as fast as possible should instill goodwill between you and the tenant, and they will be more likely to renew their lease when the time comes, thus reducing your turnover costs.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Stay informed on local <\/span><span data-preserver-spaces=\"true\">laws<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Tenant laws can change. It\u2019s <\/span><span data-preserver-spaces=\"true\">important<\/span><span data-preserver-spaces=\"true\"> to stay <\/span><span data-preserver-spaces=\"true\">up to date<\/span><span data-preserver-spaces=\"true\"> on your local jurisdiction\u2019s landlord and tenant rights to ensure you remain compliant.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Hire an excellent property <\/span><span data-preserver-spaces=\"true\">manager<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you are not managing your property yourself, <\/span><span data-preserver-spaces=\"true\">it&#8217;s imperative your property manager is<\/span><span data-preserver-spaces=\"true\"> a rock star who properly screens tenants, ensures they understand the lease agreement, has an automated rent payment system in place, solves maintenance issues as fast as possible, and stays informed on local laws and regulations. If you\u2019d like help finding an excellent property manager, <\/span><span data-preserver-spaces=\"true\">feel free to<\/span><span data-preserver-spaces=\"true\"> use BiggerPockets\u2019 <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/business\/finder\/property-managers\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Property Manager Finder<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<div id=\"hero-block_2690c2e2639fb909dde42eaf8ee7b9a0\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-50-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get More Time to Scale<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:18px\">Find trusted property managers and get everything you need to make confident hiring decisions.<\/p>\n\n\n\n<div id=button-custom-event-block_9786569f86235ee64cf0838ca53e9263 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/business\/finder\/property-managers\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Property Management Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/who-gets-hurt-from-evictions-more-tenants-or-landlords&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find a Property Manager<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/05\/PM-Finder1.png\" alt=\"find a property management company\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>We know evictions can be costly for both landlords and tenants (both financially and sometimes emotionally). But recently, I heard two investors discussing who actually loses more during the process. [&hellip;]<\/p>\n","protected":false},"author":613753,"featured_media":177300,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5183],"tags":[],"class_list":["post-177306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-landlording"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/177306","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613753"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=177306"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/177306\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/177300"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=177306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=177306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=177306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}