Property manager pays for eviction costs?

Question

Bigger Pockets put out a list of things that Property Managers should do for the owner.  One of listed items is paying for eviction costs because they picked the tenant. Is there a company in Fort Smith that does this?

Russell Brazil · Answer

I've never heard of a property management company that does that. Sounds like a unicorn to me.

Mark Rogers · Answer

@J Smelser, on LR real estate attorneys,  Tim Grooms (Quattlebaum, Grooms, Tull) is a real estate attorney and investor and is one of the smartest people I know.  On CPA's, I haven't used him yet, but Tim Johnson, at Bell Foster does a LOT of real estate investing on his own, so I plan on going to him when I come up with my next real estate related tax question.

Josh Eason · Answer

I'm an attorney in the little rock area as well. Part of my practice is in real estate. When it comes to evictions, from what I've seen, the property managers that pay my fee normally take it from their clients trust regarding the property. If the fee is paid upfront without adequate funds in the trust, the PM is going to be reimbursed from my understanding.

Like @Eric Pinter stated above, it functions similar to a PM sending out someone to work on the property. They oversee the process, pay the attorney fees and ensure the property is vacated and eviction is completed.

Jacob White · Answer

I'm an attorney in Little Rock with experience in landlord-tenant disputes, including evictions.  For larger developments, it's common for the property management company to pay for (at least on the front end) the lawyers fees for an eviction.  For smaller units, such as residential rentals, I've had both owners and property managers pay my fees.

Mike Robberson · Answer

Nigel,

I'm an investor in the Fort Smith area and none of my property managers have covered the costs of an eviction.  If you do find one, I'd love to know about them.

Levi T. · Answer

LMAO thats so funny.. Yes unicorns and triple rainbows!

J Smelser · Answer

Excellent feedback guys - thanks so much

Jason Mizell · Answer

I have worked specifically with Paul Osborn at Bell Foster Johnson and Watkins and he does a great job if you're looking for a specific name.

As a side note, if you're looking for a good title company - Juanita Dodd with Beach Abstract does a great job as well.  Just closed on two houses with her, and she was very helpful, hardworking, and quickly responsive.

Kenneth LaVoie · Answer

I find that to be a completely unreasonable thing to expect. If a company is "hungry" enough to offer that sort of deal, there's a chance their quality will suffer at some point in the future. We are selling a building and will be taking over mgmt. for the buyer. We're offering 8% mgmt. fee plus free "placement" if a tenant leaves within one year (so they're limited to one placement fee per unit per year).  We are also asking for a $50 "bonus" for every tenant in good standing on their anniversary.  That's about as generous as I've heard of.

Property manager pays for eviction costs?

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