LANDLORDS AND REO PROPERTIES
How do these two intermix? Landlords are in the business of making a monthly income off the money they have invested in properties they rent. If they have too high a percentage of renters that do not pay rent on time or just do not pay the rent the Landlord then starts an eviction process that takes 90 days or longer. If they have too many of these going on or let’s just say they own one house with a $3000 a month mortgage and normally collect $3800 a month for the rent. The profit should be around 8% per month maybe $300. If the renter stops paying rent and are served an eviction notice and it takes 120 days to get them out that is a loss of $15,200 in rent plus however long it takes to clean up the house and rent it again being conservative let’s say one more month for a total of $19,000 plus clean up and repair expenses. If the landlord makes $300 a month on the property it will take them over 5 years to break even on this snafu. You can see if the landlord did not have a minimum of $25,000 in reserves just for this one property how you could send them into foreclosure quickly. I did not even bring up the attorney and court costs for the eviction. Landlords beware, choose your tenants wisely!
Submitted by Frank Giaimo Broker Associate Linkpin Realty 619-749-8726
