If You Face Eviction, Here Is What To Do

In this terrible economy, any renter can suddenly lose his or her job and face eviction. If it happens to you, what should you do? I asked my son Kyle, who is CEO of a successful 14 year old Los Angeles area property management company with over 3,000 units under management. His advice is applicable to you wherever you are, but do consult a local lawyer before taking action. And please share this with others who may be in need.

Dear Dad,

I would do the following if I were a tenant:

- Be realistic to conservative about household finances.

- Start planning ahead if household income drops or looks like it is dropping.

- Discuss the issue with the landlord as they might make a rent reduction (even temporarily) for a good resident.

- If the current lease is not feasible, contact the landlord BEFORE the rental payment can’t be made.

o Most landlords will try and place someone in a unit that can be afforded (downsizing or a less prime location) so that they don’t lose a good resident.

- Communicate with the landlord if payments can’t be made. Don’t make them chase you.

- Avoid an eviction at all costs. It takes approximately 60 days for an eviction so for 2 month’s rent, a person’s credit is severely damaged.

o Most landlords will rent to people with damaged credit (i.e. unpaid medical, credit card collections) but won’t rent to someone with an eviction. It is truly a scarlet letter.

o Remember once you can not pay the rent, inevitably other living arrangements (via friends / family) must be made. Don’t wait, be proactive and move out. Often times a landlord will give a week or two without the eviction if there is a promise to vacate.

- You are not alone, many people are facing the same problems. Deal with the adversity head-on as it will bring better results than hiding and kicking the can down the road.

- Once back on my feet, I would live within my means and budget so that I was putting away at least 10% of my paycheck for a rainy day. Hopefully I can build up enough money to buy a property of my own, remembering that if I use an FHA loan, I can buy with as little as 3% down.

I hope this is helpful.