To File or Not to File, That is the Question

[Robert Nunez]

In the past 20 years it has become very evident to me that investors in their early careers handle evictions very differently then seasoned rental income investors.

A seasoned rental income investor in most cases handles their evictions very systematically. And early investors should skip years of headaches and financial losses and do the same. I understand that you and the tenant sometimes come to an agreement and they pay up. And sometimes they honor what they say they will do or pay.

Yet I still feel very strongly about filing evictions as detailed in our lease. We are very fair and if a tenant has communication with us and notifies us they will be late, then we are lenient at that time. If we have no communication then we file as scheduled on the 15th of the month after the late letter, and notices have been sent of course.

The fact that we have rental income insurance helps immensely so we never loose a rental payment while going through eviction because of the coverage. Yet we would not receive this rental income insurance payment if we didn't file, so its in our best interest to file.

If the tenant is going to pay then they simply will, and when they receive court filing, it changes the entire game. Now they know you are serious and normally they contact you. If they had no intention of paying, then you will see them in court or they may just like in many cases not show up. Most importantly you are already moving systematically and going forward.

In some cases we get paid before court comes around and we call in and cancel the hearing if they also reimbursed the legal filing fees. We also notify the tenant and we go back to a normal rent routine, with less delays for the next few months then ever before. It is normal for a tenant to develop a bad taste in their mouth because you filed an eviction, and rightfully so in some cases. But I'd prefer the tenant having a bad taste over something initiated and can resolve by coming current than the bad taste of months of rental income loss costing me because I wanted to wait or work it out........ Now that's a BAD taste...

So in short, file when you have to, make sure you have sent proper communications and made valid attempts to collect, but don't stress yourself out, its business and you must treat it as such. As you expect the tenant to honor your lease agreement so should you honor your filing eviction process stated on your lease..

Remember, "Out there exist a good tenant who is looking for a place like yours, and you will never meet them as long as you have a bad tenant in your place".. R Nunez.