For the past 14 months I’ve been creating content for RentPrep, a tenant screening service located just outside of Buffalo, NY.
I’ve come across some very telling data when it comes to evictions.
The most recent nationwide study suggests that there were 2.7 million evictions in 2015 in the United States.
Let’s break that down a little.
Evictions Per Month: 225,000
Evictions Per Day: 7,397
Evictions Per Hour: 308
Evictions Per Minute: 5.1
This means that on average an eviction happens every 11.8 seconds in the United States.
The average person reads at 200 word per minute. This means, on average, there has been 3.79 evictions by the time you read to the dashed lined below.
That’s because you’ve read 149 words up to this point which equates to 44.7 seconds of time or 3.79 evictions.
It can be fun to look at stats from peculiar angles but what isn’t fun is going through an eviction.
A Transunion study suggests that the average eviction costs about $3,500. If your margins are low on a property it means you can’t afford even one eviction and remain profitable.
How Do You Avoid Evictions?
The easiest thing you can do to avoid an eviction, is to not rent to someone who has had an eviction in the past seven years.
I say seven years, because evictions are only reportable for that long under the rules of the FCRA. A consumer reporting agency (such as RentPrep) cannot legally provide you eviction data that is older than seven years. It’s illegal to use as reasoning for denying an applicant.
What about reportable evictions?
Glad you asked…
… if your applicant has a reportable eviction, the law of averages says that they are more than 2.5 times likely to be evicted compared to an applicant with zero evictions on file. This data can be found in the same link provided above from Transunion.
An eviction on file means you have a high risk applicant that is much more likely to evict again.
Everyone’s criteria differs but I suggest having a zero eviction policy in place.
Run a background check and make sure you’re looking at all the available data before making a decision on an applicant.
If you’re unfamiliar with the tenant screening process you can check out our free tenant screening course on Udemy.