Rental properties have long been a staple of consistent income and a smart way to invest money into cash flowing assets, but many forget to ask: What happens if my tenant refuses to pay rent? Unfortunately, many landlords aren’t up to date on the laws and processes of evicting tenants and only spend time learning these procedures when they must put them into use. One would think owning rentals in a town as quaint as Asheboro would not involve the court dates and headaches associated with property management and evictions in bigger markets like California where tenants often retain more rights than landlords. As much as many wish that were the case, North Carolina law allows tenants to appeal an eviction and if they choose to fight their eviction it could mean drawn out court battles, which is not a good thing for those depending on the income of their rental portfolio.
When someone chooses not to pay their rent, landlords may begin the process of eviction. For years this was a familiar process, until COVID struck. Since the inception of the Pandemic and lasting up until about 2021, landlords were prohibited from evicting their non paying tenants due to health concerns, which was mandated by the government. As this move negatively impacted landlords, the government offered assistance programs to keep landlords afloat to ride out the eviction moratorium. These assistance programs came with red tape and made landlords just as reliant on the government as their tenants were. Fortunately this practice was lifted in recent months to allow landlords the ability to make their properties vacant to rent out to new income producing tenants.
The COVID moratorium on evictions negatively impacted individuals who owned rentals more so than large companies that owned dozens of properties. These “mom and pop” landlords often times use mortgages to acquire their homes. Even as the government halted foreclosures, most landlords didn’t want to lose their home after the pandemic, so staying up to date on their payments was essential, but can be difficult when the property is not income producing. The pandemic acted as a catalyst for the real estate market, yet it seemed to leave landlords in the dust as rising property values didn’t apply to the homes landlords had trouble selling due to tenant possession. The end of COVID era moratoriums a move in the right direction, especially for landlords in smaller communities like Asheboro.
After the COVID moratorium hurtles, many landlords have experienced enough difficulty with the typical eviction process. Attorneys stay in business due to their demand in all areas, which is why landlords oftentimes leave evictions up to attorneys. This is due to the lengthy legal process involved with removing someone from a house they refuse to pay rent for. Unfortunately, hiring these attorneys is not always an easy feat as their fees reflect the amount of time these processes require; readily available funds aren’t always there for those who aren’t making income off of their rental properties, causing many landlords to represent themselves. When an eviction finally goes to court, the non paying tenant can appeal the decision of the judge, prolonging the process as the case must move up the court system to another hearing. To landlords with mortgages on their property and non paying tenants, a couple more months in an eviction process could be a death sentence, especially if they can’t afford to pay the mortgage for their rental. It seems as if all the cards are stacked against landlords in the case of non paying tenants, especially those who aren’t corporate investors, but there is a silver lining.
Helpful Homes is a locally owned and operated real estate company that helps homeowners in difficult situations. They specialize in foreclosures, short sales, probate, and less than perfect properties. Another avenue of assistance they offer is to assist those experiencing difficulty with the eviction process. By beginning the purchasing process of a home from a landlord with a non paying tenant, Helpful Homes uses their resources and connections with highly skilled attorneys to get the eviction and remove the burden from the sellers portfolio. Not only are big cities in and around the NC triad the ideal market for Helpful Homes, they even cover areas like Asheboro. Rental properties can be a path to financial independence and a way to make assets produce income, but when a tenant decides not to pay, the small time investor looking to broaden their horizons becomes the person facing foreclosure. Don’t let rentals be the death of your career as an investor, call Helpful Homes if you have an issue with non paying tenants in Asheboro and they will be there to help.