It's amazing how much legislation has been passed over the past 50 years. It use to be that a property owner could put up a sign, find an interested party and ask them if they wanted to rent. If they said yes, that was it-they moved in. No paperwork--no application--just a good ol' fashioned handshake.
The days of old are the days of gone. It doesn't work like that anymore. As I begin to outline the most basic reasons for evicting residents, it's important to note that you should become familiar with legislation in your area and understand what responsibilities you can and cannot transfer to the resident. It is, of course, our goal to keep units full with good, on-time paying tenants who act in an orderly fashion. Unfortunately, that's not always what we get.
There are several types of evictions that are recognized by most states. I'll summarize 3 of the most common. They are:
- Nonpayment of Rent
- Nuisance
- Expired Lease
The most common reason for landlords to evict residents is because of nonpayment. Residents are expected to pay their rent on time. (Imagine that.) When they don't, landlords are forced to start the eviction process. This course of action varies from state to state, but generally starts somewhere between 3 and 10 days after the rent due date as outlines in the rental agreement.
Evictions can be expensive and time consuming. For that reason, many property managers and owners tend to "bend" a little. This is a dangerous practice and will cost you more in the long run if you're not careful.
Most rental agreements contain a "covenant of quiet enjoyment" (if not, it should) expressly obligating the owner or landlord to ensure tenants have the opportunity to live undisturbed. Quiet enjoyment is the right of a tenant to be left alone. That means you can't tell them what they can and cannot do in their apartment unless otherwise agreed upon. Disruption of quiet enjoyment may constitute a nuisance, which can be cause for eviction. This is one of the reasons most rental agreements are so long.
What qualifies as a nuisance? It depends on what's in your agreement, but generally includes someone who throws loud parties, disturbs other residents by being irritating, offensive or dangerous.
Many property owners prefer month-to-month leases because they can terminate it without cause. For example, suppose you have a resident who is on a 12 month lease and you're 5 months into it. You suspect that the resident is dealing drugs, but you can't prove it and there are no other grounds to terminate the agreement. Eviction can be difficult in a situation like that. And, in the case of nonpayment, the resident could claim that something in the unit wasn't working properly and that's why they haven't paid. That can make the process longer and more difficult. But if the rental agreement is month-to-month, you don't need a reason. It doesn't matter that you don't have proof. The condition of the rental unit doesn't matter. What matters is the lease has expired and you chose to terminate it.
Wish you all the success,
Steve Steadele
About Steve:
Steve Steadele, author of the book Multifamily Millionaire, is a successful Real Estate Investor, Broker, Entrepreneur and self-made millionaire. He is a featured speaker at Real Estate Investment Associations across the country where he shares his wealth of knowledge, experience and enthusiasm for the real estate industry. Today Steve specializes in the acquisition and disposition of investment real estate throughout the United States. To learn more about his products and services, visit his Web site at www.SteveSteadele.com.
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