Best way to avoid eviction expenses

Hey, guys, Chris Knight here, business Development Manager with Red Door Property Management, bringing you some more information in regards to the eviction process. Now, if you haven't already, be sure to like and subscribe so that you don't miss when we have connecting videos like we do this month. Last month we went into a little bit about how the communication should take place with the tenants and what the process looks like when you have to proceed with an eviction. If you don't mind, please ignore the Legos here in the background. Big fan favorite in this house, and I was threatened when I tried to move them. So they will remain here for a few minutes. But we're going to dive right into the program that Red door offers, which isn't exactly exclusive to Red Door. It is offered by other reputable management companies, but with Red Door, it is called the Eviction Protection Program. It's an insurance like program, if you will, but it is an essential tool when you are looking for a new management company. Really worried about the eviction process. Maybe you've gone through a horrible experience and it was extremely expensive and you're looking for ways to mitigate that potential expense, especially when diving into anew management company and not sure if you might have to endure that again. So I'm going to dive right in, show you exactly what our paper looks like for you to elect for this coverage on the front end when signing on with Red Door. Without further ado, don't hesitate with any questions or comments in the comments section. I'd be happy to answer them if you happen to have some. So let's dive right in. 

All right, so as I mentioned a moment ago, I wanted to dive over and give you an exact look at what it looks like when you're electing for this coverage when working with Red Door Property Management. Now, if you're not in our area and not looking for management services in the Indianapolis area, but your company that you're interested in offers a similar program, I'm sure their document looks somewhat similar. 

So the first thing I want to point out with this document is we try to make our owners aware of what it costs, what are the potential costs when you are proceeding with an eviction. So ours kind of outlines $600 or more. With all the discussion on inflation and the cost of goods and services going up in our current markets, I would certainly expect the average cost of a court proceeding, court eviction proceeding to far exceed the $600 estimate we've outlined here. So that's important to know. And now what does it cost and what's covered if I elect for the Eviction Protection Program? 

Let's dive right in here. So for an additional cost of twelve point 50 per month. Now this is in addition to your 9% management fee, 9%of working with Red Door, of course, 9% management fee. It's in addition to that, it's an additional twelve point month. Again, I kind of alluded to it being somewhat similar to an insurance type program to cover the costs, right, to cover the outstanding costs associated with an eviction. What's covered? Attorney fees, eviction filing fees, process server fees, court costs, broker representation fees, rid of possession fees, and of course receiving all copies of invoices and paid invoices associated with that. 

So what's also very important is the rid of possession is somewhat newer and required by Indiana state law. And a constable has to be arranged. If you have a tenant who's unwilling to leave the property, a constable has to be arranged to assist you in removing that tenant from the property. And a rid of possession is necessary in order for that process to take place. So there's a lot of details that go involved, a lot of potential charges, trip charges associated with a potential eviction these days, all of that can be avoided if you were to elect for this type of coverage. Now what's not covered? Well, very important, the cost of a jury trial, extremely rare in the residential tenant rental relationships. But it has happened, it is not covered into that. So the court costs associated with that extended jury trial are not covered under this program, of course, loss of rent. So in most cases, tenants are evicted for not paying their monthly rent. Unfortunately, it doesn't cover any of those losses. Damage to the property, of course, are not going to be covered by the eviction protection program or the cost to have him physically removed from the property. 

Now, what happens following the eviction process now is kind of new to Red Door's program and just to give you some quick highlights on what that looks like. So once we have processed the eviction, we will then continue with our attorney to pursue the tenant through small claims and secure what's called a damages judgment on that tenant. Here in Indiana, the top amount that you can secure through small claims is $6,000.So that will be our top out, but we will secure that damages judgment. And then once we have that secured and there's no payment arrangements already made with that tenant, we will immediately hand them over to a collection agency that we work with that will continue to pursue and annoy that tenant, hopefully until payment is received. So with a little bit of luck, even after you go through this experience, there is some light at the end of the tunnel where payments can start to be received. We have been very successful with the collection process in the past, so I feel very good about that entire process. 

So that's the way it really looks when working here with Red Door Property Management. So if you are considering working with Red Door and this is a program that interests you, you will just simply select the yes checkbox and then of course sign and date your agreement and you are all good to go. 

So that's a little bit of information about the Eviction protection program offered through, again, a lot of reputable management companies throughout the US. But certainly a program that a lot of our owners like to be informed on and take advantage of. 

All right, that's a wrap. Hopefully you found that super informative and you will look for the right management company that offers the Eviction protection program in your area next time you are in search, if you haven't already, hit the like and subscribe so you don't miss out on the riveting content we'll be having coming out over the next couple of months. Chris Knight, business development manager with Red Door Property Management. I'm going to go build some Legos.