I’ve been reading some blogs on Landlord-Tenant Law and other various articles and came across one of Cash in Lieu of Eviction. I don’t know the validity or viability) of this strategy, and being that Hillsborough (Tampa, FL area is brutal with the eviction process, not that eviction process isn’t brutal anywhere, but apparently this county is very pro-tenant.
The article link attached is copyrighted, but this is the one I read and became curious in this process.
Has anybody tried this way, and if so, what was your experience?
PS- I am looking to purchase a few apartment buildings in the 15-30 unit range shortly, and I’ve only been a landlord for some of my condos in NJ, so I am in process of learning the FL laws and networking with attorneys that specialize in this field.
Offer to forgive the past due rent and offer 100% of their deposit back in cash, if they’re out by Friday, and the place is left clean; giving them the money after they’re out, not before.
I have experimented with all sorts of things over the years. If the tenant has nothing to lose, such as a deposit on hand, or credit, then you’ll have to weigh your costs of eviction against paying the tenant to get out (lost rent, attorney fees, court costs, personal time spent on the situation, etc.)
This is what I did last time it came up. The guy tried to tell me he had 30 days from the time I gave notice. I said he did but he was paying all the charges if we went that route. He actually got a new job that same week for more money and offered to pay half the past due amount on Friday and the rest the week after. I agreed to that and things have been good ever since. It worked well for me because he felt that I was trying to help him. I didn’t want a vacancy in November in a small town, so was happy to cut him some slack as long as he was making fast progress towards getting me paid.
I always evict. I talk to them as adults. I ask their problem and talk about it but I never take it as an excuse. I tell them how the eviction process is going versus their repair plan but I never stop the process because if I do and have to start up again it takes another month. I am sure you want my bad tenant’s history to show up when you run their background and I want the same from you. THAT IS WHY BACKGROUND CHECKS ARE DONE.
Javipa, CEO, Estrogen, and Bluemoon, thanks for all of your responses, I appreciate the thoughts and will certainly take all into consideration.
Knock on wood, with my smaller properties in NJ, I haven’t come across this yet but now that I am looking to buy slightly larger in Tampa (where I now reside), figured the more units the more chances late payments or tenant evictions might become reality. Equipping myself extra knowledge, will go a long way and appreciate all of you for taking the time out to answer my post.
I have done this several times and it makes me sick to give someone money who owes me money but I can do math. I have been through this process enough times to know its a lot cheaper to give someone five hundred dolllars and have them move out quickly and cleanly then to go the traditional route.
I think the numbers really depend on the laws where you live. I can have someone out in 2-2.5 weeks from the time I post the notice. I’m only required to post a 72 hr notice for late rent. At the end of that, I file and get a court date within a week (max). Then the judge gives them one week to get their stuff out. Eviction only costs $65 here and also will be on their record if other LL’s check up on them. I would want other LL’s to evict tenants and have record of it, so that’s what I do too.
I’m jealous. I was looking at a minimum of 45 days to get possesion, so it was a good deal for me to deal with him. In my case the eviction could happen only on the end of a rent cycle, with a 30 day notice. Therefore, I had about 15 days from the time I identified he wasn’t paying before I HAD to evict. I had nothing to lose by agreeing.
Yeah, I might look at that differently under different circumstances. The judges here are very no nonsense about non payment of rent (as they should be). They don’t care what the story is. The people get one week to get out if they don’t pay up.