How to Avoid Evictions That Could Cost You $30K or More

How to Avoid Evictions.

Evictions are every landlord's nightmare. Not only do they cost thousands of dollars in lost rent, legal fees, and property damage, but they also drain your energy, patience, and peace of mind. After six years in rental property investing, I’ve learned that while most tenant relationships are positive, the painful eviction experiences leave lessons that stick with you forever.

In this article, I’ll share candid stories of two costly evictions I recently faced—one costing me $25,000 and the other $15,000. Beyond the financial toll, these cases revealed the emotional and legal complexities landlords encounter. More importantly, I’ll walk you through how these situations unfolded, the mindset needed to handle them, and practical strategies to avoid similar nightmares through better tenant screening and relationship building.

My $40,000 Eviction Nightmare: What Went Wrong?

Evictions are not just about money. They are stories of human complexity, deception, and frustration. One of the cases involved renting to a woman who seemed like the perfect tenant. She had a son who was helping her with the application, and everything appeared legitimate at first glance. We even signed the lease at her kitchen table—a practice I’ve stopped since.

However, it soon became clear that the son, who was not on the lease, was actually living in the unit and had no intention of being added to the lease despite my repeated requests. Rent payments started late and quickly stopped altogether. I later found out the mother was never living there; it was mostly the son occupying the unit. His background and behavior were starkly different from what was initially presented. I was misled multiple times, which was a tough pill to swallow because I pride myself on strong people skills and the ability to read people. This guy was a con artist, and I got tricked.

The eviction process dragged on, was costly, and emotionally draining. Eviction laws vary by state, and some states are more tenant-friendly than others. For example, in New Jersey, where I operate, the process is especially tough on landlords. There’s a mandatory 10-day grace period before rent is considered late, followed by a 5-day waiting period before you can even begin eviction proceedings.

The Legal Eviction Process: Slow, Costly, and Complex

The eviction process typically starts with sending a 3-day pay or quit notice. This formal notice demands the tenant either pay overdue rent or vacate the property within three days. Importantly, this notice must be served by a sheriff or marshal—not the landlord—especially if you own the property through an LLC, as I do. This legal requirement adds time and cost.

After the notice is served, the timeline begins. Usually, it takes about 10 to 12 days for the notice to be served after sending it, plus an additional 30 days wait for a court appearance. If the tenant ignores the notice, you must file a summary process claim in court. The tenant has the right to respond, and the court will set a hearing date, which can be weeks or even months away.

At the court hearing, you’ll present evidence such as unpaid rent ledgers, lease agreements, and communication records. If the court rules in your favor, you receive a judgment for possession. However, the tenant might still have some time before they must vacate, or they could pay the rent that day and reset the clock, dragging out the process.

If the tenant refuses to leave, the sheriff enforces the eviction by physically removing the tenant and their belongings. This final step is often the most stressful and costly, especially if the tenant resists or damages the property.

Tenant Screening Mistakes and How to Avoid Them

Reflecting on these painful experiences, I realized that thorough tenant screening is the best defense against costly evictions. Yet, even the best screening can’t predict every situation. The biggest red flag in my case was the son’s excessive involvement and residency without being on the lease.

One key lesson is to always know who is involved in the application process and who will be living in the unit. If someone other than the primary applicant is heavily involved—especially if they drive the car or seem to be representing the applicant—you need to consider background checks on them as well.

Here are some practical tenant screening tips based on my experience:

• Spend more time upfront:

  Don’t rush the screening process. Have honest conversations about income, debts, and the tenant’s situation before pulling credit reports. This saves time and protects applicants’ credit scores.

• Look beyond credit scores:

  Credit scores alone don’t tell the whole story. For example, someone with a 700 credit score but high debt and mispayments can be riskier than someone with a 600 score but low debt and steady income.

• Analyze debt-to-income ratio:

  I look for a debt-to-income ratio under 35% for applicants with credit scores below 700 and up to 40% for those above 700.

• Verify income with bank statements:

  Bank statements reveal actual income and spending habits better than pay stubs alone.

• Use social media and background checks:

  Verify if the applicant’s story and lifestyle match their online presence, and screen anyone heavily involved in the application process.

• Get referrals:

  Tenants referred by other tenants tend to be more reliable and community-oriented.

Sometimes, you might screen dozens of applicants before finding the right fit. For instance, I recently had over 150 inquiries for a single property over three weeks, verbally screened 25, showed it to 5 or 6, and rented it once—only to have the tenant ghost me later.

Building Better Tenant Relationships

Landlording is not just about properties and numbers; it’s about people. Tenants are human beings with stories, needs, and emotions. Treating them with kindness, empathy, and respect is not just the right thing to do—it’s smart business.

I like to think of tenants as employees and strive to build personal relationships with them. I want to be known as Bud, the property manager behind the business, rather than a faceless landlord company. This means being approachable, communicative, and setting clear boundaries and expectations.

Kindness and open communication help tenants through tough times and reduce surprises. For example, I recently texted a tenant who was behind on rent, explaining the importance of communication and the next steps. This respectful approach kept the lines open and earned their cooperation—they paid their rent.

Balancing Boundaries and Kindness

Many landlords struggle with enforcing rules firmly while also being kind. Emotional intelligence is key here. You can be clear about rent deadlines and property maintenance without being harsh or rude.

Setting boundaries is crucial to protect your personal space and safety. For example, I no longer sign leases at tenants’ homes but use public places or digital signing tools. Rent collection is done electronically or at drop-off locations to avoid in-person confrontations. These practices help maintain professionalism and safety.

Technology and Tools That Streamline Landlording

Technology plays a big role in managing rental properties efficiently and safely:

• Digital lease signing:

  Keeps the process professional, secure, and convenient.

• Online rent payments:

  Using tools like PayNearMe reduces in-person contact and speeds up payment processing.

• Social media screening:

  Helps verify applicants’ stories and lifestyle.

• Property marketing platforms:

  I use Buildium, which posts listings on Apartments.com, Zillow, Facebook Marketplace, and more, allowing me to be the approachable person behind the listing.

The Mindset That Makes a Difference

Evictions and tenant issues are emotionally taxing. At first, I worried about whether I had enough money to cover losses or fix problems. Over time, I developed a mindset of resilience and problem-solving. I don’t freak out anymore because I know I can either solve problems myself or find the right professionals to help.

“Don’t be the guy. Be the guy who knows the guy.” I rely heavily on my network of professionals with complementary skills who show up to help without expectation. This creates a culture of mutual support that helps me manage crises calmly and confidently.

When faced with challenges, I focus on gathering information, asking the right questions, and making decisions with a clear head. This mindset has been a game-changer in managing the ups and downs of real estate investing.

Protecting Yourself Legally as a Landlord

Understanding your state’s eviction laws, timelines, and costs is essential. Hire good attorneys when necessary to navigate the legal complexities. For example, in New Jersey, landlords must use an attorney to serve eviction notices when operating under an LLC.

Being prepared for the eviction process helps reduce surprises and stress. Keep thorough records of rent payments, communications, and lease agreements to present solid evidence if needed.

Final Thoughts: Eviction Is Not Inevitable

Eviction is a costly and stressful part of rental property ownership, but it’s not inevitable. By investing time and care into tenant screening, relationship building, and process management, you can dramatically reduce your risk and create a sustainable rental business.

Remember, real estate investing is as much about people as it is about properties. Treat your tenants with respect and kindness while maintaining clear boundaries to foster trust and cooperation. This approach leads to longer-term tenants who respect your property and relationship, reducing eviction incidents.

If you’re a landlord or aspiring investor, learn from the mistakes I’ve made and keep moving forward with humility and determination. Real estate investing requires patience, continuous learning, and resilience. Seek mentors, build a network of trusted advisors, and always be open to learning.

Your next great tenant and your next big success could be just around the corner.

Need Help Navigating Rental Property Investing?

If you’re a first responder or veteran interested in real estate investing and want personalized guidance, I offer free, no-obligation strategy sessions at budbans.com. This mentorship isn’t about sales—it’s about collaboration and helping others succeed.

Real estate investing can create financial freedom and build a legacy. With the right mindset, tools, and relationships, you can avoid costly eviction nightmares and build a thriving rental business.

Enlisted 2 Entrepreneur

Check out my YouTube!

I post real estate investment videos weekly!