The Cost of an Eviction
If you aren’t a property manager or an experienced land lord, you may want to think twice before you begin an eviction process. Most people believe that it is a fairly simple process and affordable, but what most people don’t know is that it might actually end up costing the owner more money to evict someone rather then try to meet their demands or compromise.
There are certain factors when it comes to an eviction, which most people don’t know about. Here are a few examples:
1. Lost of rent– Typically you will loose out on two to three months worth of rent during an eviction process, sometimes longer.
2. Set up– Even after you get your tenant evicted, you may need to spend anywhere from $500-$2000 to get the place ready for the next renter or tenant.
3. Down time– Be prepared to have a lost of fixed revenue for a period of time. It can vary depending on how well your property manager can sell, but at the very least you can expect to not have a tenant for at least a month… minimum.
4. Expensive- You will have to start advertising your property or hire someone to do it. The cost of advertising will come out of your own pocket, and so will the cost of hiring someone if you choose to do so.
5. Legal fees– If there are any disputes between you and your tenant, you may find yourself in need of a lawyer, which means more money out of your pocket. The average cost for an eviction case could range any where from $200-$750.
6. Court Cost– The cost of going to a court and to file your paper work, or any other legal issue, may range from $100-$300 depending on what you are going to court for.
The next time you are thinking about evicting someone, you may want to reconsider the process, because it may end up costing you more to evict someone rather then trying to work it out with them. You also may want to consider hiring a property manager who knows all the in’s and out’s of what to do in the worst-case scenario. For more information, feel free to contact FRE Property Management.