BiggerPockets Daily How Eviction Diversion Programs Are Driving Rates (and Costs) Down
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Dec 29, 2024 Explore the transformative power of eviction diversion programs in the real estate market. These initiatives help lower eviction rates and costs, creating a win-win for tenants and landlords. Discover how effective negotiation and support can resolve landlord-tenant disputes and address rental arrears. Philadelphia sets a successful example of fostering a more stable housing environment, potentially shifting the trend of nonpaying tenants and relieving stress for real estate investors.
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Real Estate Investing Downside
- Real estate investing has a downside: dealing with non-paying tenants.
- Many prefer the stock market due to this risk, even with tenant screening.
Philadelphia Eviction Diversion
- Philadelphia uses eviction diversion programs, requiring landlord-tenant negotiations before eviction lawsuits.
- Since enactment, eviction filings decreased 41% compared to the 2016-2019 average.
Eviction Diversion Process
- In eviction diversion, a counselor negotiates for the tenant, focusing on getting rent current, not exploiting loopholes.
- Negotiators find creative solutions, like using tax refunds, rental assistance, or payment plans.