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Corporate Eviction Management Creates a More Effective Process

Corporate Eviction Management Creates a More Effective Process
Multifamily property teams know their communities better than anyone else. They know the grounds, amenities and property layout like the back of their hands, and their relationships with residents almost make them extended family.  While that firsthand knowledge and personal connection is invaluable in day-to-day operations, that intimacy becomes an obstacle when it comes to evictions. Onsite team members were hired for their ability to turn prospects into residents as well as their ability to build relationships through assisting and nurturing the residents of the community, not removing them from their homes. However, it has historically been onsite teams who have been tasked with managing evictions. It’s time for that task to be centralized corporately, to limit the burden and involvement at the property level. Especially once current nationwide eviction moratoriums expire, evictions should be handled primarily at the corporate level, and ideally through third-party delinquency management services. By changing the dynamic and insulating onsite teams from potentially contentious interactions with residents, multifamily operators can ensure that the work their property teams have put in to cultivate those delicate relationships with residents isn’t undone. But the benefits to corporate control of the eviction process go much further.  Visibility into the evictions process When evictions are handled strictly at the property level, multifamily corporations rarely have a vantage into the process for a given community. There is no way to know whether the process was conducted professionally or effectively, or what the potential risk of exposure is during eviction proceedings. By assuming con......
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Are You Prepared For When The Eviction Moratorium Ends?

Many landlords have eagerly been waiting for the end of the CDC eviction moratorium by the centers for disease control, which was supposed to come to an end back on March 31 of this year.  Before then, most property owners had only one question in their minds - When Does Eviction Moratorium End? Initially, the eviction moratorium was previously slated for the year ending 2020, but then was extended for another 3 months up to March 31. Then it was extended yet again, to June 30, 2021. Truth be told, no landlord or property owner enjoys evicting a tenant, especially during these harsh economic times from the impact of COVID-19.  However, the property market has few options on the table, keeping in mind that there has been little or no government support to landlords. Landlords were the most affected when the eviction moratorium was announced. This is because many landlords are small or medium individual investors and businesses that cannot afford to allow nonpayment of rent for a long period of time. Since most of the rental properties are owned by this group of investors, it would mean that they were the hardest hit due to tenants not paying rent. After the extension of the eviction moratorium past March 31, it has left many landlords and property owners scrambling to be prepared for June 30, 2021, when the moratorium ends..  Landlords have some time to prepare for themselves regarding the next course of action towards people for not fulfilling their rental......
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Seattle City Council is the First to Ban Winter Evictions

Seattle City Council is the First to Ban Winter Evictions
Seattle, WA, has passed an ordinance that bars rental property owners from evicting renters during winter. While Seattle Mayor Jenny Durkan originally expressed concern about the legislation, Durkan allowed the ordinance to become law without her signature. Now passed, evictions are banned from December 1st to March 1st. According to the Seattle Times, the council amended the original five-month ban to three, restricted the rule to low- and moderate- income renters, and exempts owners with four or fewer units. Seattle’s ordinance does not apply to evictions filed due to a renter engaging in criminal or nuisance activities, due to a resident exhibiting behaviors that jeopardize the safety of their neighbors, or to owner-occupied properties(like house-hacked properties … but is that good enough? And will this trend spread? Are seasonal eviction restrictions a good idea? This law was proposed with good intentions. From December to February, U.S. Climate Data shows that the average high is 47ºF, with the average low at 37ºF, and this ordinance aims to keep more renters from becoming homeless and on the streets during the dangerously coldest months. Especially when the average credit score during these months is comparatively low, these renters could be particularly vulnerable if evicted during this time. On the other hand, laws barring evictions put landlords and property managers in a difficult position. The eviction process can be long, rigorous, and costly, and in the city of Seattle property owners are already under strict “just cause” eviction laws. If a renter does not pay their rent on t......
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Why You Should be Wary of Californian 'Just Cause' Eviction Bill AB2925

Why You Should be Wary of Californian 'Just Cause' Eviction Bill AB2925
A bill that would require California property owners and managers to list a “cause” or reason to evict or terminate a tenancy has been progressing at an alarming rate. Despite being introduced in February, AB 2925 is scheduled to be heard on the Assembly Floor sometime next week. We urge you to review AB 2925, and join industry experts like the California Apartment Association and Contemporary Information Corporation (CIC) in opposing it. Introduced by Assembly Member Bonta and Coauthored by Assembly Member Bloom, Chiu and Senator Skinner, AB 2925 would prohibit a property owner or manager from terminating a tenancy (or seeking an eviction to recover possession of a property after the lease expiration date) without a “cause”. The following does not constitute a cause that would legally allow a termination of a tenancy or eviction: A change (or anticipated change) in property ownership A property foreclosure The expiration of a fixed-term lease Many have fears that AB 2925 would enable tenant attorneys to challenge any termination notice sent to tenants. It also removes terminations for new owners, even if they want to move into the property. As currently written, this bill also fails to list what reasons do qualify a tenancy termination or eviction and relies entirely on local ‘just cause’ eviction ordinances. Beyond restricting property owners and managers' ability to terminate a lease, this bill specifically states that it wishes to “encourage or incentivize” cities across California to create their own ‘just cause’ eviction ordinances. Although AB 2925 is moving through the Legislature quickly, it’s still in the early st......
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Top 7 Questions Before You Run A Screening Report On A Potential New Resident

HAVE YOU EVER BEEN CONVICTED OF A RELEVANT CRIME? Many property owners/managers see a background report as being more important than a credit report. You really must know who you are bringing into your community, as you have a responsibility to the rest of your residents. When you allow someone into your community who could potentially could bring harm to the other residents or the property, it can do a lot of damage to your investment in a short amount of time. HAVE YOU EVER BROKEN A RENTAL AGREEMENT? OR RECEIVED A NOTICE TO PERFORM OR QUIT? If they tell you they have broken a lease ask them what happened. Sometimes circumstances dictate it to be necessary. I would recommend talking to the property management company to confirm all reason are correct and true. It will allow you to feel positive about your decision. HAVE YOU EVER BEEN EVICTED, OR EVER HAD AN UNLAWFUL DETAINER FILED AGAINST YOU? If they answer yes to this one, you need to dig deeper into the “why” of this situation. There are circumstances sometimes which can be explained. Maybe their current financial situation has gotten better. You shouldn’t automatically just toss them out. MONTHLY INCOME? The quick rule of thumb which many properties use is monthly income should be 3X the rent.  This may vary though based upon the asset class, and what other financial obligations the prospective resident has. HOW MANY PEOPLE WILL BE LIVING IN THE UNIT? This one seems like a no bra......
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The Ultimate Guide to Tenant Eviction

The Ultimate Guide to Tenant Eviction
Ok, let’s admit it. Sometimes, even with your best efforts, things may fail to work out between a tenant and you. Being a good and honest landlord, unfortunately, doesn’t shield you from bad tenants who fail to honor their rent payments, damage property, or disrupt other tenants. Of course we all wish tenant screening was completely foolproof. But, unfortunately, even tenants with the highest qualification scores and best intentions may struggle to pay rent from time to time. While this is heartbreaking, especially if you have a good relationship with a tenant, you simply can’t put them up free of charge. It may seem harsh, but it’s just business, and just like any other, your main priority is protecting it. While evicting some tenants is just as simple as asking them to leave, the bulk of them may resist, forcing you to go through a formal eviction process. To manage this appropriately, you have to follow the right legal channels, otherwise you risk locking yourself in a civil suit, and probably damaging your reputation as a property manager or landlord. Here’s a brief, but comprehensive guide to assist you: Don’t Take Matters into Your Own Hands According to the Uniform Residential Landlord and Tenant Act (URLTA of 1972), and the corresponding state tenancy laws, it’s illegal in every state to take matters into your own hands, regardless of the tenant’s actions. Even if your tenant is physically damaging your property, causing extreme nuisance, or threatening to kill you, hiring a couple of Hulk Hogans to evict......
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ALERT: OPPOSE Hiding Eviction Reports / Unlawful Detainer in Tenant Screening (AB 2819)

ALERT: OPPOSE Hiding Eviction Reports / Unlawful Detainer in Tenant Screening (AB 2819)

Under California’s unlawful detainer (UD) “masking” law,” UD court filings are masked, or hidden from public view for 60 days following the initial eviction court filing, and then are automatically unmasked. AB 2819 will permanently mask all UD actions, unless the rental property owner prevails in court, or seeks a default judgment in court. AB 2819 unfairly places the cost, burden, and responsibility for ensuring tenant defaults are made public on the backs of rental property owners.

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Three steps every landlord must take when evicting a renter

Three steps every landlord must take when evicting a renter
Once you've established that you have legal grounds on which to evict, save yourself headaches by following three simple steps to evicting a tenant. Step One: Know the law in your state Most states have a version of the Uniform Residential Landlord and Tenant Act. Every landlord should be familiar with their state's version before ever renting a property, but it pays to review state law before starting the eviction process. The law will address specific questions like how to notify a tenant that they are in violation of the lease agreement, how many days the tenant has to respond to the initial notice, and what follow-up steps are required. As the landlord, you're responsible for proving lease violations, so it pays to know the law and the text of your own lease thoroughly before you're asked to stand before a judge. Step Two: Put the resident on notice Every state law requires that the landlord post a termination notice, usually giving the tenant an opportunity to correct a situation. In extreme situations, there is no opportunity for a resident to change their ways; this is called an Unconditional Quit Notice. It's reserved for the most extreme cases of repeat non-payment of rent, property damage, and illegal activity. It still gives the tenant a time frame in which to vacate the property voluntarily before you begin legal eviction proceedings. Step Three: File a lawsuit to evict Landlords usually don't have any right to remove a resident or their property, or lock......
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Is your tenant turning your rental into a meth lab?

Is your tenant turning your rental into a meth lab?

Being in the vicinity of a meth lab puts a person at risk of personal health problems due to the chemical residues. It also affects personal safety because of the risk of an explosion. For a landlord, the cost of cleaning up a home contaminated by a meth lab could cost $10,000 or more.

 

Here are the signs you should not ignore:

 

  • Neighbors complaining of strange activity at the home, such a people coming through at all hours of the day.
  • A random abundance of common materials used for meth production, such as: cans, bottles, tubing, propane tanks, cooler, portable stoves
  • Packages of suspicious chemical substances like acetone, brake cleaner, drain cleaner, iodine, paint thinner, phosphorous, etc.
  • Strong, unpleasant smells – similar to cat urine.

 

Ask yourself, “Why does my tenant need paint thinner?” or “What IS that smell?”

 

You can purchase DIY meth detection kits online for around $50, or you can pay a professional service to perform a more comprehensive test for just under a thousand dollars. While that might seem costly, it is nothing compared to the price you will have to pay to evict, and then treat your home for contamination.

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Take Your Billions Back Multifamily! The Real Cost of Moving in Residents Who Don't Work Out

b2ap3_thumbnail_NPSBillion.jpgI read a headline recently from a respected insurance provider that there are 2.2 million landlord-tenant disputes filed in U.S. courts each year, which got me thinking that that’s a whole lot of time and money lost to deal with residents who default or dispute lease obligations.  Take a look at the math using widely distributed industry cost estimates, assuming that only half of all disputes require eviction and turnover: - 4 staff hours @ $25/hr. start to finish per dispute of any kind = $100 x 2.2 million disputes = $220 million in staff cost - Average (low-end) cost per per eviction and turnover @$3,000/incident x 50% of disputes = $3.3 billion in expense - Those costs added together total:  $3.520 billion total annual industry cost    Let’s be generous and cut the number of disputes that result in eviction and turnover in half again and we still end up with a giant bite out of bottom line profitability across the industry of over $1.5 billion in lost revenue as a result of moving in renters who don’t work out.  Reminds me of HR Block commercial during the Super Bowl that told America to “Take Back Your Billion! No surprise: back-end, front-end and in between, property companies have a huge incentive to do whatever they can to properly screen applicants and to put as many tools in place as possible to help those residents be successful throughout the tenure of their leases.  How good are the tools in place? Screenin......
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