Owning rental property can be a great way to earn some passive income. However, one of the drawbacks of this is when you run into a tenant that can't pay their rent.
In the Atlanta area, there have been over 72,000 evictions in the first half of 2023. If you own property in Georgia, you are likely to run into this at some point.
What do you do if you need to evict someone? You should get eviction protection before this happens.
This guide breaks down everything you need to know about eviction protection plans.
Eviction Guarantee
One of the first things you need to know about this is if you get a Georgia eviction protection plan from us, you can receive up to $2,000 in coverage. This usually happens when you have to force a tenant out of your rental property.
The money is used to cover some of the costs you have to incur such as getting the apartment ready for the next tenant that moves in. It can also help buy you time while you figure out what to do about the loss of the remaining profit you were expecting to see.
Tenants Covered
Another thing you have to realize is that this type of plan does not cover every tenant that you have. You have to sign a Management Agreement for your protection plan first.
Once you do that, any new tenant you get after this is automatically covered.
What about tenants that were already there before you got this plan? You have to wait until seven months after you sign the agreement before you receive eviction protection for those tenants.
What This Does Not Cover
While eviction protection can help landlords, you have to know that this is not going to cover every cost you might incur.
An example is the fact that an eviction protection plan is not going to compensate you for rent that you failed to collect. Considering that tenants can fall several months behind on rent before they can get evicted, it essentially means you have to eat thousands of dollars in uncollected rent.
There is also the possibility of property damage. A tenant getting evicted may get vindictive and decide to damage the apartment on their way out. Or, they could have just taken poor care of the place before even facing eviction.
Unfortunately, landlords are not covered for this with just an eviction protection plan. You need to have property insurance for this which can cost as little as $67 per month.
Get Eviction Protection
These are the main things that you need to know about eviction protection. Know that it can pay you a flat rate for expenses you may incur to get your rental property ready for the next tenant.
However, you also need to be aware that this alone does not cover every expense. You could still take a loss on things such as property damage and lost rent without separate protection for those things.
Do you want to know more? Message us here with your questions.
