We know that evictions can be expensive for both landlords and tenants (both financially and sometimes emotionally). But recently, I overheard two investors discussing who they were actually you lose more during the process. Landlords go through an expensive eviction process, and tenants go through it expensive the process of losing the place they call home.
I’ve heard arguments on both sides, so I’ll move on slowly more research to resolve this debate.
Total Landlord Eviction Costs
Good a breakdown of the eviction costs already exists it is written about separate BiggerPockets articleso I’ll quickly summarize it here:
- Legal fees: You may want to hire an eviction attorney to handle the paperwork. Expect at least $500 in uncontested dismissals.
- Court costs: The average court fee for filing an eviction is about $50. Expect this number to grow if the tenant contests the eviction and the lawsuit continues.
- Sheriff’s fees: If you win the eviction hearing, you may need to hire a sheriff to help evict the tenant. These costs can range between $50-$400.
- Lost rent: Depending on where you live and how long it takes to evict a tenant, you could lose one to several months of rent. In accordance with Zillowthe median rent for all types of properties in the US in 2024 is $2,100. For simplicity, we’ll assume three months of lost rent between eviction and finding a new tenant. Estimated cost: $6,300.
- Fix: Hopefully, the repair and cleaning costs won’t be too much after removal. For simplicity, let’s assume a total cost of $1,500.
Total cost
Depending on the building and the area you live in, you can expect your total financing costs or anywhere between $4,000-$8,000. If you are lucky and have a great local manager, hopefully, these costs can be significantly reduced.
Total Cost of Termination of Employer
When employers they are firedit’s usually because they haven’t paid their rent or are in breach of their lease one way or another. In these cases, tenants will lose their security deposit, which can be anything from 50% to 100% of the monthly amount. Using the average rental price from Zillow, we can estimate this cost to be between $1,000 and $2,100.
Tenants will also receive transportation costs. According to Angiaverage costs mobile rental units are between $400 and $3,000.
Meanwhile, there is a huge emotional cost to the employer as well. A 2022 study published in Preventive Medicine Reports linked to evictions and reduced mental health, as stressful events can cause greater anxiety and depression among displaced people.
All this means that employers will lose, on average, between $1,400 to $5,100 and can incur huge emotional costs that are difficult to quantify.
Total Cost of Economic Displacement
Dismissal not only it affects landlords and tenants butcombined, it may also have an impact on the economy. According to the US Department of Housing and Urban Development (HUD)rising eviction rates are directly related to the increase in homelessness and are related to a possible decrease in productivity at work, as evicted employers must deal with the consequences of their situation.
If we add the total cost of evictions to homeowners and renters, multiplying the result by the number of evictions per year, we can establish the small economic impact that evictions have on the economy as a whole. Using what we have described, the total cost of eviction for both landlords and tenants is between an estimated $5,400 to $13,100. An estimated 2.7 million families receive eviction papers every year.
So, if we multiply the minimum eviction cost of $5,400 by the 2.7 million evicted households per yearwe find an estimated negative impact of $14.58 billion on the economy each year due to evictions.
While this is a general guess, the overall loss for all teams should not be overlooked.
The result: Everyone loses
Getting fired is a lose-lose situation for everyone. And sometimes they cannot be avoidedTheir occurrence can be minimized by following the steps outlined below.
How to Avoid Eviction as a Landlord
That you plan to hire a property manager or manage it yourself yours assets, BiggerPockets provides resources to set you up for asset management success. Here are some tried-and-true tactics to lower your chances of getting fired.
Check the tenants thoroughly
Undoubtedly, the majority it is important step in the employer evaluation process. Choosing the right employer based on background, credit, and income may decrease significantly your chances of problems in the future. Here are a few things to keep in mind when checking out employers:
- Set your minimum requirements: Typically, landlords will require tenants to have three times their rent to income, as well as no issuance history and minimal credit. This is something good the starting point.
- Ask for references: Being able to talk to a previous tenant can be a great opportunity to learn how they will work as a tenant in your area.
There is a wonderful BiggerPockets article if you’d like learn more about screening employers.
Make sure the tenant understands the lease agreement
Sometimes, legal forms can be boring to readand many people hide the information. It may be wise to go over the agreement with the tenant, explain all the clauses and ensure that they are carried out completely they understand the contract they are signing.
If you want to know if you should included in the rental agreementI recommend reading This article.
Have an automatic rental payment system
Instead of it’s worth the chase reduce your tenants to monthly rent (or hopefully they’ll remember to give you a check), you or your landlord can set up automatic rent withdrawals using a platform like They left each other or Rent Red. These platforms help to automate the rent payment process by automatically withdrawing the rent from the tenant’s bank account every month. This It will (hopefully) ensure that the rent is paid on time, every time.
Resolve maintenance issues quickly it is possible
No tenant likes a landlord who takes forever to fix a sink, shower, or AC unit that breaks in the summer. When maintenance issues arise, this can be frustrating for the tenant. Solving their problem as soon as possible should put goodwill between you and the tenant, and they will be more likely to renew their lease when the time comes, thus reducing your interest costs.
Stay informed about the area rules
Employer rules are subject to change. That’s right it is important to stay it is timely to your landlord and your tenant’s rights to ensure you stay in compliance.
Rent a great place manager
If you do not manage your property yourself, It is important for your site manager a rock star who properly vets tenants, makes sure they understand the lease, has an automated rent payment system in place, resolves maintenance issues as quickly as possible, and stays up-to-date on local laws and regulations. If you would like help finding a quality property manager, feel free use BiggerPockets’ Property Manager Finder.
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A Note About BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BiggerPockets.
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