Real estate licensees should act with caution when pursuing an eviction. There are very strict laws for evictions that must be followed to ensure that evictions are lawful. Landlords need to understand also that evictions can take a long time to work their way through the court system — it’s not a quick and easy process.
What is a Lawful Eviction?
Real estate licensees who manage rental properties should familiarize themselves with the eviction laws in your state. Although the laws differ from state to state, what they have in common is that landlords cannot just evict tenants for no reason, if there is a formal lease agreement in place. There has to be just cause. Typically, those reasons include damage to a property, nonpayment of rent, illegal activity in the property or some other breach of the terms of the lease agreement. If a tenant is being evicted for some other reason, for example, the landlord wants to move into the property, the landlord will generally need to provide the tenant with a period of rent or a waiver of rent to allow the tenant to relocate.
In California, for example, renters who have lived in a property for more than 12 months have ‘just cause’ eviction protections if they live in a property that meets the ‘just cause’ protections conditions. The law states when evictions are lawful. This includes some ‘at-fault’ reasons, such as:
- Non-payment of rent
- Breaking a material rule in the lease agreement
- Criminal activity at the property
- Subletting, if not allowed within the lease agreement
- Refusing to sign a new lease, if the lease offers similar terms to the previous lease
- Denying entry to the home by the landlord, if they have a legal right to enter
‘No-fault’ evictions, where the tenant has done anything wrong, are also legal. However, the landlord must waive one month’s rent or give the tenant one month’s rent to help the tenant relocate.
How Licensees/Property Managers Can Protect Themselves
Know the Correct Process for Your Local Area
While the laws vary from state to state, and even across municipalities, the eviction process is similar everywhere. An eviction notice needs to be provided to the tenant outlining a deadline for rent to be paid or damages to the property to be fixed. If the tenant does not meet the deadline, the landlord is allowed to file a lawsuit against the tenant to evict them. The landlord may seek, not only an order to evict, but also damages to cover unpaid rent, damage and court costs.
Watch Out for Illegal Eviction Activity
Property Managers should watch out for any signs of illegal evictions by landlords. Things like changing the locks, removing a tenant’s belongings unlawfully and turning off electricity or water to try and force tenants out are all illegal actions.
Educate Landlords
Real estate licensees and property managers can educate landlords, so they understand what constitutes a lawful eviction. This should be part of your onboarding process when you’re leasing a property, so the landlord is fully aware of the conditions of the agreement and how and when it can be terminated.
Use Disclaimers
Use disclaimers in your communications with landlords to ensure you’re covered if any of the information you provided changes. For example, if you email a client about an eviction moratorium applicable to their local area or any other eviction information, ensure you include a disclaimer. In the disclaimer, you should state that the information you have provided is the most up-to-date information you have available but may be subject to change without notice. State in your disclaimer that property owners should do their own due diligence when making decisions about their property.
Ensure You Have Adequate Insurance Protection
Adequate insurance protection is essential to ensure you’re covered in case of a lawsuit. CRES real estate E&O + ClaimPrevent® offers insurance tailored for real estate, so you can get coverage for the risks you face in your business every day. This insurance package also gives you access to the CRES legal team pre-claim! You’ll be able to access legal advice from qualified attorneys who understand real estate and property management — helping you to prevent lawsuits.
We are part of one of the largest insurance brokers in the world, so we have access to more property manager E&O insurance options to help find you superior protection at an exceptional value, with pre-claim legal help included.
Contact CRES at 800-880-2747 for a confidential discussion about your insurance needs today.
