Case Study - Actual Cost of Eviction & Rehab of Unit - In Washington State

[John Barrett]

I created this post to address a question I get from many other landlords.  What if I have do an eviction (and what will it cost)?

During the pandemic many landlords in WA State were prevented from evicting problematic tenants from our properties.  The attached collage of photos shows the unit when we received possession via the Sheriff, through junk out of the unit and rehab.  I have summarized the actual costs incurred to provide insight as to what reserves people need be prepared for.

Our lost rent amount was larger due to the specific policies of our state legislature.  In this case the tenant issues were not related to COVID but rather drug addiction.  This led to other nonresidents coming and going from our property as well as additional illegal activity.  The police officers were wonderful but very limited in what actions they were allowed to take.  Navigating the new ERPP (Eviction Resolution Pilot Program) is designed to be intentionally complicated to delay evictions at owners expense.  The case workers supporting the program tried to assist where possible but are constrained in what they can do by the rules of the program.  Our tenant never participated in any aspect of the program.  Her sole motivation seemed to be to continue occupying the unit and further her illegal activities with her associates for as long as possible. Unfortunately this meant that the residents of the other 3 units of this building effectively had no right to quiet enjoyment  / safe living environment due to the current legislation.  Obviously this is just one example but I think it can provide insight into what challenges investors should be prepared for.

My hope is you take away from this post:

1.) Ensure you understand the current landlord tenant regulations and importance of tenant screening.

2.) Have sufficient cash reserves / access to capital.

3.) These situations are not insurmountable, but you need to have capital, professional support and a plan.

I hope this specific case study of challenges a landlord will sometimes have to overcome has provided some insight to you.

John

[Nathan Gesner]

The only thing a Landlord can do is screen heavily and hold high standards. Once the Tenant is in, there's nothing stopping them from causing you tens of thousands in losses, and that's without COVID restrictions.

People need to remember that Seattle enacted a "No Winter Eviction" policy in 2019, before COVID, that essentially allows anyone to live in a rental for up to six months for free before the Landlord can start taking steps for eviction. The government has no concern for fairness or private property rights.