On The Market
Why the True Cost of an Eviction Is (Much) Higher Than You Think
Oct 31, 2024
James Daynard, a seasoned Seattle real estate investor, joins Austin Wolff, a Market Intelligence Analyst at BiggerPockets, to delve into the staggering costs of evictions in America, totaling over $14 billion annually. They discuss the financial burden on landlords and tenants, stressing the emotional toll on affected families. James shares his personal $100,000 eviction experience and offers actionable tips for landlords to minimize risks. The conversation also highlights proactive tenant screening strategies to attract reliable renters and prevent costly evictions.
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Quick takeaways
- Evictions cost the U.S. economy over $14.5 billion annually, impacting landlords, tenants, and communities beyond individual financial losses.
- Implementing thorough tenant screening and offering incentives can significantly reduce eviction instances and foster better landlord-tenant relationships.
Deep dives
The Financial Burden of Evictions on Landlords
Evictions can impose a significant financial burden on property owners, often resulting in substantial losses. One investor shared an experience of losing approximately $175,000 due to pandemic-related eviction complications, highlighting the potential for costs to accumulate during lengthy legal processes. The research indicates that the primary expenses incurred by landlords during evictions include holding costs, legal fees, and repairs needed for the property post-eviction. A single eviction can quickly escalate to costs ranging anywhere from a few thousand to over $60,000, heavily impacting an investor's cash flow and overall profitability.
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