No-Eviction Guarantee: Why Property Managers Should Pay Attorney Fees During Evictions

Part 8 of 8: Service Guarantee Series

Five Months and $26,000: What an Eviction Costs the Owner

By BRIAN BEAN
Rental Home Advocate | Property Manager | Real Estate Broker

Choosing the right renter is THE most important task in property management.

But bad things can happen to even the best tenants. When an eviction is required, is it reasonable to expect whoever placed that renter to pay for the attorney fees?

We think it is.

The True Cost of Evictions in the Inland Empire

If you’ve ever had to evict a tenant, you know it can be a long, painful, costly process.

In the Inland Empire of Southern California, it will take 3 months minimum just to get a judgment, plus at least another month to have the deputies assigned for a lockout. And then you have to put the property back together to get it ready for a new resident. If it’s bad, add on another month. Now you’re at 5 months, optimistically, just to get back on the market.

And it’s not just lost time. It’s lost income and increased expenses:

  • Attorney fees: $1,200 to start
  • Lost rent: $2,500/month for 6 months = $15,000
  • Repairs and renovations: Just carpet and paint can easily reach $10,000

As the property owner, those costs fall on you. But if someone else chose the tenants, why shouldn’t they have to share in at least some of those losses?

My opinion? That would be a fair request. It’s why we implemented our No-Eviction Guarantee a few years back, to stand behind our work and show our confidence in our abilities.

How Our No-Eviction Guarantee Works

With our No-Eviction Guarantee, if an eviction is filed against a resident that we placed in one of our clients’ properties, we pay the initial attorney fee to start the eviction process.

As of the date of this writing, that runs about twelve hundred dollars. If the eviction runs all the way to summary judgment – meaning the residents didn’t fight back and require lots of court hearings – that would hopefully cover the legal costs.

Now, like everything, there are a few exceptions. In this case, the guarantee doesn’t apply when eviction is the result of unexpected or legally unpreventable circumstances. They include:

  • If an active-duty military member receives official orders requiring relocation
  • If a resident is a victim of domestic violence and personal safety is an issue
  • If an occupant dies and the remaining household members cannot afford to pay or to move
  • Or, if the property owner got involved in the process and overrode our choice for approval

But for all other reasons, we’re on the hook.

Why We Offer This Guarantee

And here’s why – it really comes down to trust and confidence.

If we offer a service but then don’t stand behind our results, how can we ask our clients to trust us with the task?

I came to that realization several years ago. When I first started managing properties for other people, we did NOT pay any of the costs associated with eviction. But prospective clients would ask during the interview. Looking back, I think it had more to do with my lack of confidence in my own ability.

Today, after so many years in business and hundreds of successful placements, I have no problem making the guarantee and backing it up with my wallet.

Three Reasons This Guarantee Works

First, it shows ultimate confidence in what we do and we’re backing it up with real money. We must maintain the highest screening standards.

Second, it aligns our interests with yours. Evictions are terrible for everyone. They’re expensive for you, time-consuming for us, and traumatic for the resident. We have every incentive to do it right the first time.

Lastly, this guarantee doesn’t expire, which means we can never get lazy with our screening or the relationships we continue to foster with our residents.

Core Values in Action

Three of our five core values apply here:

1. Own the Outcome – We take responsibility for our work and the results.

2. Put the Client First – We protect you from bearing the sole cost when calamity hits.

3. Treat People Right – Even during an eviction, we handle things professionally and respectfully.

Why Tenant Screening Is Our Most Important Task

I believe placing great residents is the most important thing we do. It lays the foundation for everything – our daily duties and business success, your emotional and financial well-being, our residents’ security and peaceful enjoyment of their home.

Because so much is at stake, we spend more effort and time on tenant screening than just about anything else we do. We make sure we cross all T’s and dot all I’s.

Consequently, in the past six years, we’ve only had two evictions out of hundreds of placements.

So what came first? A service guarantee that forced us to improve our process? Or the skills and outcomes that gave us confidence to make the offer?

The only thing that matters is that we make the promise, we do the work, and we stand behind the results.

And THAT is what you need from your property manager.

Questions About Our No-Eviction Guarantee?

If you have questions about our No-Eviction Guarantee or any of our other service guarantees, I’m happy to discuss how they work in real-world situations.

Call me directly at 951-314-5402. You can also find more information about all our service guarantees at dreambigpm.com.

We serve rental property investors throughout the Inland Empire, including Riverside, Moreno Valley, Corona, San Bernardino, and surrounding communities.

The Complete Service Guarantee Series

Related Reading

Full Transcript

Transcript of the video above — Brian Bean, Broker/Owner and Rental Home Advocate, Dream Big Property Management. CA DRE #01346382. Lightly edited for readability.

Choosing the right renter is the most important task in property management. But bad things can happen to even the best tenants. When an eviction is required, is it reasonable to expect that whoever placed that renter should pay for the attorney fees? I’m going to explain why it is.

Hi, I’m Brian Bean with Dream Big Property Management here in Riverside, California. This is the final piece in our eight-part series on property management service guarantees. Today we’re talking about the worst-case scenario when it comes to owning rental properties, the nightmare that every investor fears: evictions.

If you’ve ever had to evict a tenant, you know it can be a long, painful, costly process. In the Inland Empire of Southern California, it will take three months minimum just to get a judgment, plus at least another month to have the deputies assigned for a lockout. Then you have to put the property back together to get it ready for a new resident. If it’s bad, add on another month. Now you’re at five months, optimistically, just to get back on the market.

And it’s not really just lost time. It’s lost income and increased expenses. Attorney’s fees, $1,200 to start. Lost rent, $2,500 a month for six months, that’s $15,000. And then repairs and renovations. Just carpet and paint can easily reach $10,000.

That’s the property owner. Those costs fall on you. But if someone else chose the tenants, why shouldn’t they have to share in at least some of those losses? My opinion? That would be a fair request.

It’s why we implemented our No-Eviction Guarantee a few years back, to stand behind our work and show that we’re confident in our abilities. With our No-Eviction Guarantee, if an eviction is filed against a resident that we placed in one of our clients’ properties, we pay the initial attorney’s fee to start the eviction process. As of the date of this recording, that runs about $1,200. If the eviction runs all the way to summary judgment, meaning the residents didn’t fight back, didn’t require a lot of court hearings, that would hopefully cover the legal cost.

Now, like everything, there are a few exceptions. In this case, the guarantee doesn’t apply when the eviction is the result of unexpected or legally unpreventable circumstances. Those might include: an active-duty military member receives official orders requiring relocation; if the resident is a victim of domestic violence and personal safety is an issue; if an occupant dies and the remaining household members either can’t afford to pay or to move; or if the property owner got involved in the process and they overrode our choice for approval. But for all other reasons, we’re on the hook.

Here’s why. It really comes down to trust and confidence. If we offer a service but then don’t stand behind our results, how can we ask our clients to trust us with that task? I came to that realization several years ago when I first started managing properties for other people. We did not pay for any costs associated with eviction, but prospective clients would ask during the interview. Looking back, I think it had more to do with my lack of confidence in my own ability. Today, after so many years in business and hundreds of successful placements, I have no problem making this guarantee and backing it up with my wallet.

Here’s why. First, it shows ultimate confidence in what we do, and we’re backing it up with real money. We must maintain the highest screening standards. Second, it aligns our interests with yours. Evictions are terrible for everyone. They’re expensive for you, time-consuming for us. They are traumatic for the resident. We have every incentive to do it right the first time. And lastly, this guarantee doesn’t expire, which means we can never get lazy. Not just about our screening, but also about the relationships that we continue to foster with our residents.

Three out of five of our core values apply here. One, own the outcome. We take responsibility for our work and the results. Two, put the clients first. We protect you from bearing the sole cost when a calamity hits. And lastly, treat people right. Even during an eviction, we handle things professionally and respectfully.

I believe placing great residents is the most important thing we do. It lays the foundation for everything: our daily duties and business success, your emotional and financial well-being, a resident’s security and peaceful enjoyment of their home. Because so much is at stake, we spend much time and effort on tenant screening, more than just about anything else that we do. We make sure we cross all T’s and dot all I’s. Consequently, in the past six years, we’ve only had two evictions out of hundreds of placements.

So, what came first? A service guarantee that forced us to improve our process? Or the skills and outcomes that gave us confidence to make the offer? The only thing that matters is that we make the promise, we do the work, and then we stand behind the result. And that is what you need from your property manager.

This is the last in our eight-part series on service guarantees. In the past two months, we’ve covered eight policies, including our communication guarantee, satisfaction guarantee, performance guarantee, no-hidden-fees and no-upfront-fees guarantees, our lease guarantee, and now our No-Eviction Guarantee. We didn’t implement these guarantees as marketing gimmicks. We created them because two-thirds of single-family rental property owners manage their own homes, largely because they’re afraid to hand over control of their most valuable financial asset to someone they don’t trust. Together, these eight promises combine to tackle those fears with transparency, accountability and a record of success.

If you have questions about our No-Eviction Guarantee or any of our other service guarantees, call me directly at 951-314-5402. I’m happy to share. We’ll put links in the show notes to all of our other videos in this series, but you can also find valuable information on our website, dreambigpm.com.

And if you found the information you heard here today useful, please do us a favor and like and subscribe so that we can help others just like you. Don’t be accidental about your future. Be intentional to your success.