Evictions are not just stressful for the tenants who are asked to vacate the rental property they reside in— it's also an inconvenience for landlords. The eviction process is lengthy, and neglecting certain state and local laws can be troublesome for property owners. That's precisely why evicting tenants should be avoided whenever possible, and alternative solutions should be explored instead.
Key Takeaways:
- Evictions are costly, time-consuming, and can harm a landlord’s reputation if not handled carefully.
- The process leads to financial setbacks such as lost rental income, turnover costs, and legal fees.
- Alternatives like cash for keys, payment plans, and rental assistance programs can resolve issues without going to court.
- Open communication and flexibility, such as offering tenant relocation or extended grace periods, can preserve relationships and reduce turnover.
- Avoiding eviction whenever possible protects cash flow, reduces stress, and supports long-term rental business success.
What are the Effects of Evictions on Your Rental Business?
- Loss of Income: Without a tenant paying rent, you will lose your main source of income, which can be dire if your rental property is a single-family home. Keep in mind that you can't evict a tenant without a court order, which can sometimes take months to be finalized.
- Tenant Turnover Costs: Once the tenant leaves, you need to re-rent your rental unit as quickly as you can. That means spending money to market it, as well as restoring it to its original condition before it was occupied.
- Legal Costs: You must undergo a legal eviction process before the tenant can vacate the premises, resulting in legal expenses, including court costs. This can easily skyrocket if you end up violating any landlord-tenant laws.
- Bad Reputation: Sometimes, tenants cannot make rent payments because of financial hardships or other extenuating circumstances. If you evict a tenant without considering alternative methods, potential tenants might avoid your rental on principle.
Alternatives to Eviction
Many landlords and property managers turn to easier and more effective alternatives to eviction rather than resorting to extreme measures. Here are options you can consider to prevent tedious eviction cases.
Cash For Keys
A cash for keys arrangement allows you to bypass the entire court process for removing a tenant from the property. Despite what the title suggests, this option can actually help you save money by giving tenants cash instead of paying legal fees. It will also save you time that you can use to manage your rental instead.
Rent Payment Plan
Many landlords save their tenants from homelessness by providing a payment plan for back rent, rather than evicting them. If they have been good tenants prior to the late rent payments, you can draft a signed agreement stating the terms of a payment plan to help them out. This arrangement can also apply to partial rent deferral.
Rental Assistance Programs
You can help your tenants avoid eviction by referring them to tenant-based assistance programs that can help your renters pay their rent and late fees. This is one of the few eviction alternatives that doesn't require too much from you, but tenants will still appreciate it nonetheless.
Proper Communication
It can be simple yet effective for resolving tenant disputes. If you have established a strong landlord-tenant relationship with your current tenants, this method will likely work. You can ask why they failed to pay rent owed and provide a grace period for them to avoid eviction.
Tenant Relocation
If you have a multi-unit property with varying price ranges, you can offer your tenant to move into a cheaper unit instead. It might involve more property management work, such as drafting a new lease agreement, but it's preferable to avoiding the eviction process and associated fees.
Extended Grace Period
Extra time might just be what your tenant needs to make future rent payments. You can ask how long they may need to find rental assistance or secure a loan for a payment plan. Make sure they sign a legally binding agreement to prevent tenants from abusing your leniency.
Texas Eviction Process FAQs
Can I deduct overdue rent from the security deposit?
- You may not use the tenant's deposit to cover late rent, even if they offer it themselves. Texas Property Code Section 92.108 states that if a tenant violates the law, they could end up paying three times the amount of the money withheld and legal fees.
When can I gain access to my rental property during eviction proceedings?
- Your tenant has the legal right to keep you out of the property until a court judgment is issued, assuming that you win the case. If you do so before the process is finalized, a tenant may opt for legal action.
How does a rent payment plan work?
- That will depend on the terms you set. In most cases, the whole rent amount is divided into smaller amounts that will be paid regularly within the span of a month. However, you can set your own timeframe.
Should eviction alternatives always be used?
- No. In some cases, such as a tenant conducting illegal activities within the rental unit, eviction is the only answer. Gather all the necessary documents and evidence to ensure that the eviction process goes smoothly.
What can I do to prevent evictions for my rental business?
- Proactive property management through tenant screening is the key to reducing, if not avoiding, the need to evict a tenant. Use comprehensive screening criteria to ensure that your tenants will follow your rules and pay rent on time.
Let a Property Manager Handle It For You
Evictions are among a landlord's most dreaded aspects of property management. In addition to the need for meticulous adherence to procedures and laws, many eviction cases also take a considerable amount of time to finalize.
The easiest approach would be to let a professional property manager handle it. Austin Property Management offers eviction protection, wherein your property manager would handle everything from serving notices to recovering unpaid rent.
We aim to be one step ahead by screening potential tenants carefully to avoid this situation and to ensure that your rental business is continuously profitable.
Let's maximize the value of your property. Contact us now!