If you’re in real-estate investing, (i.e., a business), you’re in the business of making money. Well, hopefully. However, the “always business…never personal” attitude may be hard if you’re…not heartless. That said, you must remain vigilant to the task at hand, which is creating and maintaining a competitive, viable option in the rental community and maintaining occupancy. One thing that you will find having an income property is to expect the unexpected. The first time you have to deal with burst pipes, a fire, or a security problem you quickly learn to devise a Plan A, B, and even C for almost every eventuality.
No matter how well you or your property management company screens prospective tenants, you will eventually have to deal with the need to terminate a lease and evict a tenant. It’s not an easy decision and can be complicated and…sticky. The legal aspects are a given and should be followed to the letter. Evictions have the added complication of a human element that makes the entire situation much less cut and dry than things like insurance issues and maintenance worries. Needing to do an eviction in the holiday season takes things from sticky to downright deplorable. So, how do you to handle it? Or, do you?
There is certainly an argument to be made on waiting until after the holidays. Whether the tenant observes the holidays or not, there is just a spirit of goodwill that would make some shy away from the complications, business and personal, that evicting someone when the world is all aglow with tidings of comfort and joy something you might wish to avoid. However, the holidays takes a toll on the tenant and the landlord. If you choose to delay the eviction process, you are basically absorbing what can be described as a social cost. You’re paying the cost of keeping a tenant who’s not paying rent, while they are maintaining possession of your rental. You’re not able to turn it over for the next tenant. Cha-ching, cha-ching! It can be a ripple effect of costly complications.
Some tips for keeping a clear conscious, making good business decisions, and not feeling like the “The Grinch that Evicted Christmas” might be:
- If you think, for a moment, that you will not be able to deal with an eviction issue—when needed and during the holiday season—lean on a reputable property management company. It’s what they do. They may have steps in place, as part of their SOP, which may lessen the blow for the tenant, and take the worry off of your shoulders.
- Handle the problem before the holidays. If the non-payment has been a problem, don’t let it drag on. If you’ve covered yourself legally, and have followed the lease agreement, take the holidays out of the equation by handling the issue when it first becomes an issue.
- If you do delay eviction until after the holidays, be emphatic in your advisement that eviction is still pending and, then, be swift in completing the action at the time you advise. No exceptions.
It’s great to conduct business without checking your heart at the door. But, no business is for the faint of heart. Remember all of the reasons you got into real-estate investing, all of the things you need to do with the income it generates and the people that are counting on the decisions you made. Life happens, plan for the worst, hope for the best and always protect your investment!
