So you did all your tenant due diligence, everything checked out, but now your tenant is 2 months behind in paying the rent. You've tried contacting them to work something out, but promised payments are not paying the mortgage. What now? It's time to get serious and start the eviction process.
Let me tell you, it's really no fun evicting someone. It takes time, patience, and to make matters worse, the whole rental legal system leans on the side of the tenant. You'll have to check the "landlord tenancies act" in your province/state, but around here, you have to give them several notices after which point you register your eviction with the government landlord tenancies division.
Within the tenant notice of eviction, I usually provide an extra letter stating an alternate solution that would work for both the landlord and tenant. Basically, I give the tenant the option of moving out within the next week with the apartment in move in condition. If they do this, as a reward I'll forget about the money owing. Most of the time, the threat of eviction is enough to get a non-paying tenant to move on.
Some of you are probably thinking that I'm crazy for letting the tenant get away with not paying the rent. However, the way I see it is that it's a quick way to get a non-paying tenant out of the property quickly instead of dragging out the eviction process which can take months. Even after going through the eviction process to get the rent owing, there is still no guarantee that it will be paid back.
Not only are you missing rent payments DURING the eviction process, the actual proceedings cost a fair bit of money also. Below is a list of some of the costs involved, note that I didn't include the actual price as it will vary from province to province.
- Cost to register the eviction.
- Cost of getting sheriffs dept involved.
- Cost to change the locks.
- Collections agency cut if you decide to go this route.
- Cost of cleaning up the place in case the tenant decides to trash the place on their way out.
- Cost of lost rent during the eviction process.
In conclusion, evicting a tenant is definitely in the bottom of my fun list however a necessary procedure to get a non-paying tenant out. This is why I'm a stickler when it comes to tenant screening which helps in weeding out the bad ones. Also, as a landlord, it is your duty to know all the landlord/tenant rules in your region. I suggest that you read over and learn the rules/regulations as it will help you tremendously in case you run into trouble.
I've Completed My Million Dollar Journey. Let Me Guide You Through Yours!
Sign up below to get a copy of our free eBook: Can I Retire Yet?