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Why you should NOT feel guilty about evictions (Real Estate Investing & Tenant Management)

Personally, I am an emotional and compassionate person. But professionally, I am strictly business and emotion–free.  Needless to say, I struggled at first with being a landlord. The first tenant I ever had to evict was living in a property with a rent amount of approx. $1,600.00.

I worked with the tenants for several months trying to work out payment plans, cutting them breaks on late fees and going above and beyond to try and accommodate THEIR situation because I felt bad for them. After the tenants failed to hold up their end of the agreement numerous times and racked up a bill of around $6000.00, I was forced to take them to court. Seems like an easy choice at that point, right? Well the kicker was, the sheriff was scheduled to physically remove them from the property only a day or two before Thanksgiving. The tenants, along with other business affiliates of mine called me cruel and heartless for throwing them out during the holiday season. I started to doubt my decision, then, I found this- which I taped to my door so that I could be reminded everyday why I should not feel bad about evicting people.

TEN REASONS WHY YOU SHOULD NOT FEEL GUILTY ABOUT EVICTIONS – Please post as a reminder to yourself. (credit to:  The Landlord’s Kit, by Jeffrey Taylor)

1. Always start evictions immediately. If the tenants need more time, the court will give it to them.
2. You don’t make a profit with evictions. You only cut your losses.
3. You’ve already supplied the “needy” tenant with free housing. You’ve done your charity work, give someone else a chance.
4. If the tenant doesn’t have a friend or relative to help out, doesn’t that say a lot about the tenant’s character?
5. If anyone asks you how you could put someone out of the street, ask the questioner to pay the rent so you won’t evict the tenant. (I love this one! I actually said this to someone and it was hilarious how quickly the questioner changed their tune when THEIR money was at stake. – Sarah)
6.  The tenant has illegally kept possession of your house and is stealing from you. The tenant has stolen your home, stolen utilities, stolen your hard-earned investment, and stolen your services. The tenant is a thief. Do you see stores letting your tenant go in and take from them?
7. Letting a tenant stay in your house while not paying rent is like giving your tenant your charge card or a blank check and telling them, “Feel free to spend it because I don’t really care. I like loaning money out interest free, even if I’m not sure I’ll get it back”.
8. How would you feel if you worked all week and your employer said, “I don’t have a paycheck for you”? Guess what, your tenant has told you that! Do you work for nothing?
9. If you give your apartment away or provide free rent, you should be the one who decides who gets it, not your tenant. There are a lot of people more deserving.
10. Your tenant is taking money that provides for your family needs. And the sad thing is that some tenants live better lifestyles than their landlords do. It’s easy when the landlords let them live rent free! Picture yourself trying to tell your child that you cannot give him or her, what he or she wanted because you had to pay a stranger’s rent so the stranger could buy a gift for another child.

After being a landlord for almost three years now, managing up to 100 units at a time, I’ve learned that there are people who are genuinely struggling (especially with the diminishing economy) and there are also what we call “professional tenants”; people who know the system and live off of it by taking advantage of unsuspecting landlords. Having experienced both, I give all of my tenants an equal opportunity to avoid eviction through the use of a legally binding payment plan. I discuss the terms of the payment plan with them thoroughly in person and make sure they agree it is reasonable and that they can stick to it. If they do not, they are well aware of the consequences. The mantra I live by in landlording and in life is “TEACH PEOPLE HOW TO TREAT YOU”. If you allow a tenant to pay late, they will continue to pay late. If you reward a tenant for paying early, they will pay early. And lastly, if you do not evict them after you have made a mutual agreement; they will not take you seriously and will continue to abuse the business relationship. Tenants are not your friends; they are your business partners.