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cover of episode Why the True Cost of an Eviction Is (Much) Higher Than You Think

Why the True Cost of an Eviction Is (Much) Higher Than You Think

2024/10/31
logo of podcast On The Market

On The Market

AI Deep Dive AI Chapters Transcript
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A
Austin Wolff
D
Dave Meyer
J
James Dinnar
Topics
James Dinnar:驱逐令的成本远高于人们的想象,一次经历让他损失了17.5万美元。这其中包括长时间的空置期导致的租金损失、法律费用、维修费用以及其他相关支出。他分享了在疫情期间处理一栋12单元建筑的驱逐经历,详细说明了时间成本和经济损失。他强调了预防的重要性,并建议通过提供高质量的房产来吸引高素质的租户,从而减少驱逐的可能性。他还建议在收购房产时,预留足够的资金来应对潜在的驱逐情况,并可能采取现金激励的方式促使租户搬迁。 Austin Wolff:研究表明,美国每年大约有270万起驱逐令被提起。驱逐令对房东、租户和整个社会都会造成巨大的经济损失。对于房东来说,最大的成本通常是空置期导致的租金损失和维修成本。驱逐令的持续时间是影响成本的关键因素,在不同的州和市场,驱逐令的处理时间差异很大。对于租户来说,驱逐令会导致押金损失、搬家费用以及对信用评分的负面影响。此外,驱逐令还会对社会经济产生一些难以量化的影响,例如对仓储需求的影响和对租户心理健康的影响。他估算,每年驱逐令对美国经济的最低负面影响估计为145亿美元。 Dave Meyer:驱逐令对房东和租户双方都不利,投资者应尽量减少驱逐令对投资和租户的影响。他强调了对驱逐令成本的了解有助于优化投资组合、定价和租户筛选。他建议在租户筛选过程中,应严格遵守法律法规,并根据市场情况制定合理的筛选标准。他认为,提供高质量的房产和良好的物业管理可以有效降低驱逐风险。

Deep Dive

Chapters
James shares his most costly eviction experience, which cost him $175,000, and discusses the average costs and timeframes associated with evictions in different markets.
  • James' most expensive eviction cost $175,000 due to pandemic restrictions and court delays.
  • Average eviction costs range from $4,000 to $10,000, primarily due to holding costs and potential repair costs.
  • Eviction processes can vary widely by market, with some taking as little as three weeks and others over a year.

Shownotes Transcript

Evictions suck—for everyone. They’re bad for the property owner, the tenant, and America as a whole. On the lowest end of the spectrum, evictions cost Americans over $14,000,000,000 (that’s BILLION) per year. With this massive sum spent on court fees, attorneys, moving trucks, and lost rent, how do we STOP evictions before they happen? What can landlords do to ensure they NEVER have to kick out another tenant for nonpayment? Today, we’re discussing the true cost of evictions and how to avoid them.

We’ve brought our own Market Intelligence Analyst,** Austin Wolff**, back to the show to share how much evictions cost) for the landlord, how much they cost to the tenant, and how much they cost society. We’re breaking down which costs hurt real estate investors the most during the process and how long it may take you to get a non-paying tenant) out of your house.

Once you’ve been seriously sticker-shocked by the price of an eviction, James brings us some actionable steps he uses daily to** avoid evictions** at his rentals. He recently had one of the worst evictions, costing him SIX FIGURES. He shares what to do so this DOESN’T happen at your investment property, plus** the type of rental you can provide that attracts the highest-quality tenants). **

In This Episode We Cover

The astronomically high cost of evictions in the United States

**How long evictions **usually take, and why they often drag out months (or even years)

The cost of an eviction to a tenant and the fees they have to pay once they’re forced to leave

How to avoid evictions) from the start by following some quick tips from James

The key to maintaining a high rent collection rate in your rental portfolio (fewer evictions)

What to do if you inherit tenants) you suspect WON’T pay once you purchase the property

Overall economic impacts of evictions and why we MUST reduce them

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise)

Join BiggerPockets for FREE)

Property Manager Finder)

Dave's BiggerPockets Profile)

James' BiggerPockets Profile)

Austin's BiggerPockets Profile)

6 Strategies That Help Landlords Avoid Evictions)

Grab “The Book on Managing Rental Properties”)

*Evicted *Book)

Jump to topic:

(00:00) Intro

(02:23) Most Expensive Eviction Ever?

(05:23) Cost/Time It Takes to Evict

(14:11) The Cost to Tenants

(18:57) Serious Economic Effects

(22:47) How to Avoid Evictions

(29:44) Inheriting Tenants (What to Do)

(32:09) Astronomical Total Costs

Check out more resources from this show on BiggerPockets.com) and  https://www.biggerpockets.com/blog/on-the-market-265)

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected]).

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