Why Are Eviction Rates Rising & What Can Landlords Do About It? 

Evictions are a worst-case scenario for most landlords. They’re stressful, time-consuming, and expensive. Unfortunately, across the United States, eviction rates are on the rise. In some areas, eviction rates are 50% higher than pre-pandemic levels. 

Several factors have contributed to this problem, creating a perfect storm for evictions. Here’s a look at some of the reasons eviction rates are so high and tips for how landlords can deal this issue.

For state-specific eviction forms or tenant screening services, visit ezLandlordForms.com. 

Factors Leading to More Evictions

When reviewing eviction data, it’s clear that several things are contributing to the rising number of evictions in the United States. The factors having the biggest impact on current eviction filings are:

• Above-average increase in rent prices. In the last few years, rent has increased significantly more than income has. This means a lower income-to-rent ratio, which leads to tighter margins for tenants. The result is an increase in missed rent payments and an increased risk of evictions. 
• High interest rates. After seeing historically low interest rates in 2021, interest rates have steadily increased and remained high. This has kept more first-time buyers out of the market and put upward pressure on rent prices. 
• The end of COVID-19 eviction protections. COVID-19 eviction restrictions and moratoriums put evictions on hold. Now that all restrictions have been lifted, there has been a surge to handle all pent-up demand. 
• A lack of affordable housing. Many communities have a lack of affordable housing. While efforts are in place to create more supply, there remains a shortage. A lack of affordable housing means more tenants are housing burdened and paying more for rent than they can really afford. This increases the risk of missed payments and evictions.  

How Can Landlords Deal With Rising Eviction Rates

Given the factors impacting eviction rates, it’s likely to be an ongoing issue for tenants and landlords. However, the good news is that there are things landlords can do to prevent evictions and reduce the risk of having tenants who are unable to pay rent. 

Here are some best practices that all landlords and property managers should implement. 

1. Be proactive about dealing with tenants behind on rent. 

If a tenant falls behind on rent, don’t ignore the issue. Instead, contact the tenant to see what’s going on. You want to address the issue before the tenant gets too far behind on rent to catch up. 

Try to work with the tenant to come up with a plan to get them back on track. If the tenant experienced a one-time hardship that caused them to miss a rent payment, consider options like a payment plan for past due rent or rent forgiveness to help get them back on track. 

In some situations, a rent reduction might enable a tenant to consistently make monthly rent payments. While this might seem counterintuitive to landlords, the cost of a rent reduction is often less than the cost of dealing with an eviction, vacancy, and placement of a new tenant. 

If your tenant is communicating with you and working with you, get creative and try to come up with a plan that works for both parties. 

 

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2. Utilize local resources and eviction protection services

Most areas offer some eviction protection services that support tenants. If your tenant has experienced hardships that have led to missed rent payments, there could be resources available to help them get current on rent payments.

Given the current conditions, all landlords should familiarize themselves with the local resources available to tenants. If a tenant is unable to pay rent, one of the first steps you can take is to refer them to local organizations that can offer support. 

3. Prioritize Tenant Screening 

The best way to avoid bad rental outcomes is with effective tenant screening. Before handing over possession of your rental unit, you want to ensure that the tenant is qualified. This means looking at the applicant’s credit report, credit score or ResidentScore, background check, and eviction history report.

Reviewing all of this information will let you know whether an applicant is qualified and is in a position to consistently pay rent on time. Effective tenant screening is always important, but it’s particularly crucial given the current rental environment. 

4. Always use a legally compliant Lease Agreement

Another way to protect yourself during periods of high evictions is to ensure you have a good state-specific lease agreement in place before handing over possession of your property. Your lease is what protects you if problems arise with a tenant. A good lease can be the difference between winning and losing in an eviction proceeding. 

To ensure you have maximum protection, never hand over possession of a rental unit until you have a lease agreement that: 

• Complies with all of your state’s lease laws
• Is detailed and covers all rental terms and rules 
• Has been reviewed and signed by both the tenant and landlord

5. Consult With a Local Attorney if You Need to File an Eviction

If you are concerned that you’ll need to evict a tenant, consult with a local attorney who specializes in evictions. To be successful in an eviction proceeding, you have to comply with all procedural requirements. Each state has its own eviction procedures, and many municipalities have specific requirements. 

Consulting with an attorney early in the process will ensure you know all of your rights and your tenant’s rights. If you have to evict a tenant, you want to do it correctly. Work with an expert throughout the process to ensure you get the best result possible. 

Stay Informed to Get the Most Out of Your Real Estate Investments

While eviction rates are up, the right property management systems can drastically reduce the risk of bad rental outcomes. Landlords who screen tenants, use a good lease agreement, and proactively deal with issues reduce the risk of evictions. 

Visit ezLandlordForms for the property management tools you need to get the most out of your real estate investments.