Owning a rental property can come with a lot of responsibility. One of those responsibilities is making sure that you are renting to the right tenants.
Right now, about 44 million people rent in the United States. Because that pool is so large, you are bound to run into tenants that you have no choice but to evict.
In case you run into that scenario, you need to have an eviction protection plan.
Why do you need eviction protection? What can it do for you? This guide answers those questions and more.
What Tenants Are Covered?
One thing you should know in advance is not every tenant is covered under this plan. It takes a certain amount of time for some tenants to get grandfathered into this plan.
So, how does this work?
Any tenant that you acquire after signing up for this eviction protection plan automatically gets covered as soon as they move into one of your apartments. However, for existing tenants, you have to wait seven months until you can get eviction protection for them.
Things Not Covered
If you run into a difficult tenant, you may have to provide resources to clear their stuff out of an apartment. That is because you are likely going to have to clear that apartment to get it ready for the next tenant as soon as possible.
However, those costs add up if you want to hire a moving company to help you clear heavier and more fragile objects. Just for a local move, the average cost is about $1,250 in the United States.
That is not the only cost that you may have to pay for yourself. You can also be on the hook for any property damage that the tenant caused while they were renting your apartment.
On top of this, eviction protection does not cover any rent that you lost while renting to this tenant. Unfortunately, this can mean that you do not have rent from your property for several months.
Make sure you have a full understanding of what is covered before moving forward.
So, what do you get covered with this eviction protection plan? You can receive up to $2,000 for any costs related to the eviction process.
The majority of these costs are likely to be legal costs. This can be anything from filing the proper paperwork to evict a tenant to showing up to court and pleading your case for just cause to evict a troublesome tenant.
In those situations, you can receive compensation for those expenses.
Get Eviction Protection
These are the main things that you need to know about eviction protection.
Know that not every tenant is covered under this plan as soon as you sign the dotted line. You will have to wait seven months to cover any existing tenants that you have.
Also, know that only certain losses are covered during the eviction process. These are most likely going to be things related to the legal process.
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