One of the top concerns for property owners who are considering renting out their property is the possibility of needing to evict a tenant. Although most tenancies do not result in issues like an eviction, the possibility of lost rental income and a pending legal process can be daunting. Below we detail what happens if a tenant stops paying rent, and how you can best address the situation.
The answer to this question can vary depending on if someone is self-managing, or utilizing a different property management company. We recommend that any eviction process is facilitated by a legal professional.
At Rincon Property Management, we collect rent on the same date each month. If a tenant is unable to pay the rent, or does not pay the rent, for any reason, we will provide the tenant with a 3-day notice to pay or quit. This notice provides the tenant with three full business days to either pay the rental payment or move out, to not face eviction. If they do not move out or provide the remaining rental payment, we will contact a local attorney.
It is important to us that the property owners are informed and aware throughout this process. We update property owners any time a notice is given to a tenant, any decisions about the situation are made, and before we contact an attorney. The owner must be in full support of the decision to proceed with eviction, or agree to another solution.
Should I worry about the eviction process?
If you are well-informed about the eviction process, and how to take the appropriate measures, you do not need to be concerned about the process. We recommend reaching out for professional legal help, or utilizing a property management company who can handle this process for you.
When a professional handles this process, it can reduce any mistakes occurring. Errors throughout the process could result in a longer process, more money spent on legal fees, and delaying the time in which a new tenant could inhabit the unit. These expenses and loss of income can add up quickly. For this reason, it is in a property owner’s best interest to handle an eviction quickly, and with professional insight.
At Rincon Property Management, we utilize professional legal help to navigate the eviction process as well. This ensures we are always staying current with local, state and federal guidelines.
How can I mitigate the risk?
We provide a variety of different plans that our clients can choose from when they select us at their property manager. Some of these plans include SureVestor Insurance, which provides guarantees to owners.
These guarantees include eviction coverage, which protects you from having to pay out of pocket expenses in the event of an eviction. This could include legal expenses that come up, and covers up to $7,000. Lost rent coverage is also available, to help you protect yourself financially from a loss of rental income. Loss of rental income can occur from a number of scenarios.
Malicious tenant damage coverage through SureVestor helps you protect your home and belongings from any malicious damage by tenants residing in the home. It can cover up to $50,000. If a tenant breaks a lease, there is lease break coverage available, which would go into effect if a tenant breaks their lease or leaves before the agreed upon date. It can cover up to twelve weeks of rent.
This coverage can help mitigate some of the impact that these events can have.
If you are interested in learning more about this process, view our article detailing the eviction process, or visit our learning hub.
