The prospect of needing to evict a tenant is not something that any rental property owner looks forward to. Eviction, and the circumstances surrounding needing to evict a tenant, is one of the most common concerns that owners list. Although we have shared articles detailing the eviction process, what happens if a tenant stops paying rent, and the top three things to do when you are going through an eviction, we have not shared the exact costs that you can expect to occur throughout this process. Below we detail what you can expect for costs when going through an eviction.
Legal fees
The most well-known cost associated with an eviction is the legal cost associated with the process. Although it is not required that a property owner seek out professional legal help, this is something that we highly recommend. The eviction process can be complicated, and small mistakes can delay the process.
Although there may be a negative association with the term cost in the context of an eviction, it is well worth it for a rental property owner to seek out this level of assistance during the process. These fees can vary, depending on what type of help you seek out, the circumstances of the eviction, your location, and more.
For example, a flat fee for a local attorney in our area could roughly be around $2,000. This is for an uncomplicated eviction, with no trial. Complications can make this cost increase.
Management fees
If you are working with a property management company, there may be fees associated with the eviction process. When you are vetting a property management company, we recommend asking what the eviction process would look like with them, if any fees are associated with the process, and how often evictions occur at their properties.
Sheriff fees
If a tenant refuses to leave the property, there may be a need to involve local law enforcement to conduct a lock-out. There are fees associated with this process that can vary depending on location.
Repairs
Although this is not a fee directly associated with the process, it is important to remember that once the tenant has been removed for the property, there may be damages that need to get addressed. Although in most cases, tenants do not intentionally cause damages to a property, it is important to have a plan in place in case this happens.
At Rincon Property Management, select pricing packages provide SureVestor insurance, which protects against eviction fees, and malicious tenant damages. The policy we provide to our clients covers up to 7,000 in legal fees relating to an eviction.
Vacancies
If the tenant is being evicted due to nonpayment of rent, vacancy time should also be taken into consideration. While a tenant is not paying rent, and you cannot begin leasing the property to another tenant, you are losing money. This is why we encourage property owners to reach out to professionals for help during this process. Delays in the process can be costly, and make the process take longer.
For example, the average rent in our area is around $3,000. If an eviction takes two - three months, the property owner would be losing $6,000 - $9,000 dollars in rental payments alone.
The total, true cost of an eviction is highly dependent on the circumstances surrounding the eviction and the location in which it happens. At Rincon Property Management, we encourage our clients to have insurance that helps offset these costs, and we utilize professional services to ensure we are always staying compliant with local, state and federal laws.
