Both landlords and tenants want to steer clear of evictions. In addition to the tedious procedure of filing and completing the eviction process, there are court costs to worry about. Fortunately, alternatives to formal eviction can help landlords and tenants avoid these headaches, and we’re here to help guide you through the most common options to avoiding evictions.
Alternatives to Eviction Landlords Should Explore
Cash for Keys
Cash for keys is exactly as it sounds. A landlord or a property manager offers money for the tenant to move out. This can be used for no-fault evictions like remodeling the rental property, especially since tenants may have legal protections that prevent the property owner from simply evicting them.
In this case, a cash-for-keys deal might encourage them to surrender the rental willingly. Landlords save both time and resources, seeing as paying the tenant cash to move will cost less than going through an eviction process.
Refuse Lease Renewal
In the state of Texas, landlord-tenant law states that the property owner can deny a tenant lease renewal. However, you need to provide a 30-day notice to terminate, or the tenant will have the right to continue their stay until the next renewal period. Refusing tenancy can lead to a contract lawsuit and will cost you more in the long run.
While it makes sense to explore alternative solutions, you still have to abide by legal protections that make eviction fair for everyone involved. This helps you avoid legal action and prevent further legal fees.
Rental Assistance
Struggling tenants might have a hard time making rent payments. Instead of going through an entire process, you can choose the more compassionate option and offer a rent payment plan or assistance program, wherein they can still settle rent owed amidst their financial hardship. This can reduce tenant turnover and will create a better landlord-tenant relationship.
As for where tenants get rental assistance, there are several state and local government programs you can recommend. Texas Department of Housing & Community Affairs, for instance, suggests tenants visit the rental assistance website or call 855-270-7655 to learn more about their options for assistance so they can get help to pay rent.
Rent Payment Plan
Even without the aid of rental assistance, landlords can still help tenants get back on track with their rent. A common alternative for dispute resolution would be considering partial rent deferral and waiving late fees on top of a payment plan, instead of asking a tenant to move out. You will still have to set a few rules to avoid missing future rent payments.
For one, ensure that you put this all in writing and include a timeline for when you start your rent payment plan for the tenant. Set a clear agreed-upon date to catch up on rent on a signed agreement outlining payment, and you may recoup your losses sooner as opposed to finding a new tenant. That can also help retain an otherwise quality tenant who has just fallen on hard times.
Deducting from the Security Deposit
Security deposits can assist tenants and landlords in avoiding eviction and going through a time-consuming eviction case. It provides an option for a better alternative instead of extreme measures, although this might be more complex if it is not stated in the lease agreement.
You can consult an attorney when drafting lease agreements, stating that deposits can serve as a way to pay rent and incurred fees. This preventive measure can protect tenants and landlords from pursuing legal action. Texas law allows landlords to charge up to two months' rent for the security deposit for furnished units, and one for unfurnished units.
Proper Communication or Mediation
One of the simplest alternative solutions before starting the eviction process is talking to the tenant. Cash-for-keys arrangements or rental assistance are good options, but these resolution methods typically put the landlord at a disadvantage since they have to pay for the tenant's relocation or repayment.
If that doesn't work, you can hire a trained mediator to handle the issue. Letting a professional handle the despite allows you to resolve the matter faster, and could even lead to the tenant paying rent or leaving voluntarily.
How Eviction Alternatives Benefit You and Your Rental Business
It Helps You Save Time
Even if money were not an issue, the eviction process can take from weeks to months before it is finalized, which means you have a long road ahead. You can always hire professionals or property managers to handle the eviction, but you’ll still have a rental unit unavailable to new tenants until it’s settled.
Lower Costs
We’ve already established that some of the alternatives can help you save money in terms of legal fees, but what most landlords forget to factor in is that evicting a tenant will also lead to turnover costs, which include marketing the unit, repairs for damages that the tenant may have caused, and processes like tenant screening for new renters.
Better Reputation
Your reputation as a landlord and that of your business can benefit from ethical acts like rental assistance, which can ultimately help you find more tenants in the future. Having options for tenants who might struggle with rent can widen your market, but be sure you still screen your tenant meticulously to try to avoid it.
Reduce Vacancy
In some cases, it's better to have a tenant who pays late instead of not having a tenant at all. Depending on the rental demand in your area, you might find it difficult to find another tenant to fill your rental unit, and late payments are better than having no rental income for an extended period.
Property Managers Can Shield You from the Stress
Many landlords choose to hire professional property management to handle particularly stressful aspects of the rental business like eviction. Austin Property Management has the expertise and resources to do that for you.
Not only can we oversee the entire eviction process, but we can also recover rent and other charges due from the tenant. With full-service property management, you can earn passive income as you let us take care of everything else. Call us and learn more about how we can maximize your business's earning potential!
