Start eviction or wait?

Question

One of my tenants stopped paying recently. My PM suggested that we not start the eviction process right away, because he might get himself current and eviction can be expensive.

Well, you all know how that worked out. He didn't pay the following month either, and we had to evict anyway. I basically lost a month.

I know there's probably a little gray area, but is it ever right to ride it out a little, or do you always just proceed under the assumption that you won't get paid?

Thanks.

Joel Owens · Answer

Tenants have HABITS. If the habit is to pay late and pay the late fees each time then as long as they are causing no other issues you keep them.

The KEY is that they never go over 30 days as next months bill will start snowballing and they will want to do partial payments.

It will create extra hours for you or your property manager to collect and additional bookkeeping. The tenant will also forget what amount they paid and you will have to keep reminding them.

You have to keep them at 30 days for their own good or they will dig a hole intentional or otherwise that they can now not get out of.

Account Closed · Answer

LOL! Welcome to CA Ryan.  $100 to serve a 3-day notice is cheap in my opinion.  Out of the $900, $550-$600 is for court & sheriff fees.  Attorneys charge $300-$400/hour is normal here.

Account Closed · Answer

Michael D.,

Start the eviction process immediately. Google for evictionservicecenter.com, call & talk to Jennifer Silvas. Her dad is attorney Daniel Paris, who is a well respected eviction attorney in Santa Clara County. My co-worker used them recently and was extremely happy with the result. I believe they charge $100 to serve the 3 days notice and $900 to file for the eviction.  If the tenant contests and you have to go to court, they would charge an additional $250-$300 for it. All in is $1,300 max. That's cheap in my opinion. The whole process takes about 3-4 weeks. If the tenant contests, it would take 6-7 weeks.

Santa Clara County is landlord friendly unlike San Franciso & Alameda Counties.

Good luck.

Scott W. · Answer

i agree w/ ryan. attorneys are overrated for certain things. i took my ex to court for child support to get established/back pay. everybody told me I was crazy. You know what? It was very easy.

Ryan M. · Answer

I was off a little, checked my last one $138 for everything. Imo, not sure why anyone messes with CA, and I have family in the LA area that does, but the numbers are crazy all the way around. There is no room to cashflow.

Why are we paying a attorney?

Non payment in and out not crazy about paying an attorney anyone could do for non payment case in court.

Michael D. · Answer

Thanks for all the great advice guys. I should have known better, but I'll know for next time.

Lynn M., you also bring up a good point. I think there are (rare) times when it's clear that you'll probably end up getting paid and there's no need to make a big deal out of it. In your case, the tenant is openly and clearly communicating with you about what his plans are. I wish all mine were like that!

Lynn McGeein · Answer

Michael, While I am sure I am the minority here, just want to post that I actually do have a tenant that I know will be late 2-3 times each year, and I've never started eviction proceedings on her.  She's now started her 4th year with me, house is in great shape, but her old landlord told me that she pays a month late about once a quarter.  Always catches up by the next month, but has to do with her shift schedule or something.  She was with him for over 5 years.  So I knew going in what she was like.  She even e-mails my property manager before the 1st saying, "sorry, won't be there til ...", usually end of that month, and it's always there on the date she says, including late fees.    I've had a long-term tenant, no turnover costs for going on 4 years now, no complaints as she's just happy to have someone who works with her, and all it's cost to date is knowing not to expect an on-time payment 2-3 times per year.  I'm actually okay with that.

Ryan M. · Answer

Those are crazy numbers.....

I can have someone out and a judgement for $125 with court costs and personal service. I will have 3 hours in it total with court, depending on the schedule that day. Though I will avoid court if possible.

The big thing is the time their eating up while waiting for the proper times to remove them.

Alex Craig · Answer

I always file for eviction the day after the 5th if the tenant is avoiding me.  Most of the time I don't have to, but it doesn't cost that much to file a FED and get a judgement.  If the tenant pays, we do not evict, but if they do not, at least we have started the process. Also, that FED is good for a period of time (off the top of my head I forget how long).  Also, if you file on the 6th with a tenant early in the lease, it serves as a wake up call.

Michael Lauther · Answer

What is the phrase? Speak softly but carry a big stick? I believe   you should post the required notice and go through the motions and at the same time you may be able to work out the problems. If not just continue the process. I did not do this and it took me 4 months before they left voluntarily. If I had demonstrated that I had no choice but to proceed according to the lease they would have left sooner I'm sure.

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