Eviction protection is key if you are going to be a landlord in Minneapolis. Last year, there were over 22,000 evictions filed in Minnesota.
If you own rental property in this state, you have to be aware of the chances of having a tenant eviction here. Because of this, you need to protect yourself from the financial consequences of eviction.
This guide goes over what having a plan could do for you.
Starting the Process
The first thing you have to do is sign up for an eviction protection plan. This allows a property management company to protect you in the event that you face a tenant that has to be evicted.
With this, you will be fully with every tenant that you sign on after you get this plan.
What about those tenants that are grandfathered in? Well, those take a little longer to get covered under this plan. However, once they have been there for seven months after you get your eviction protection plan, you will be covered for those tenants too.
Receiving Financial Compensation
So, what happens if there is a tenant eviction that is covered under this plan? As the landlord, you would receive compensation for the loss that you had with this tenant.
However, this is pretty much a flat rate. What this means is that you would receive cash up to $2,000.
This may not cover all of your actual losses, but it can allow you to go through the transitional period of getting your rental property ready for the next tenant. There will be things that you have to do during this stage where compensation money can help.
Some of those things include cleaning the property, fixing any minor repairs, potentially hiring movers to get belongings out of the property, and more.
What Does This Not Cover?
As mentioned above, this protection plan is not going to cover every expense or loss you may face as a landlord during this process.
An example could be the rent that you may not be able to collect. Let's face it, you could spend months trying to evict a bad tenant in Minnesota. If you charge them $2,000 per month for rent, you may lose out on $12,000 in rent collection if it takes six months to get them out.
These are losses you have to expect to take in this situation.
This plan also does not cover any property damage. If you get a vindictive tenant, this may become a concern. The recommendation here is to get commercial property insurance for as little as $67 per month.
Get Eviction Protection
These are the things that you need to know about eviction protection. If you have this, you can at least get some sort of compensation to cover some of your losses. This includes a flat rate of $2,000 to get the property ready for the next tenant.
However, know that this does not cover any loss of rent collection and existing tenants do not get covered until seven months into the plan.
Do you want to know more? Message us here today.
