The real estate blog.

Most of the housing laws in our country were designed with the general intent of protecting our citizens from powerful interests and ensuring a fair playing field.  This will strike most fair-minded people as a reasonable proposition…but at some point most long-term real estate investors will realize that, in the eyes of the government, they fall into the “powerful interests” category. 

I’ve stated before that real estate investing is all about dealing with people - that’s one of the ongoing themes of my writing.  Even the most savvy negotiation, however, will eventually end up in a situation where she needs to understand relevant state laws concerning evictions. 

The eviction process can actually be completed fairly quickly if - and that’s a big “if” - the landlord knows the law and follows the rules of the game.  Every landlord should review the relevant State requirements.  Here’s a general flowchart for the process in Texas, my home state. 

In my opinion, the most important step in this process is the first one: the Pay or Quit / Cure or Quit step.  These are the notices that identify the problem in writing (rent not paid, dog on premises, excessive noise, whatever) and inform the tenant that eviction in imminent if the problem isn’t remedied. 

It’s my belief that most people are generally reasonable.  (Note:  If you have a tenant that defies this norm then you probably need to take a look at your applicant screening process.)  A tenant who gets behind on his rent might simply need to have expectations clearly set out; every month he needs to pay for his cell phone, car note, and other expenses - but nothing comes before keeping a roof over his head.  Paying you needs to be his first priority every month. 

The Pay or Quit notice is a legally mandated step in the eviction process in most states, but it can be more than that.  A sharply worded Pay or Quit notice should be the first arrow in your quiver to negotiating a successful resolution without going to court.   If the tenant complies then you can avoid the expense and inconvenience of proceeding with the eviction process, and then you can reconsider your options at lease renewal time. 

Related links:

Establishing Ground Rules with your Tenants

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