Philadelphia landlords have more red tape to cut through to remove nonpaying tenants.
After a trial period, Philadelphia made an eviction diversion process permanent in June, the Wall Street Journal reported. The procedure has prevented thousands of tenants avoid being removed from their home.
Eviction diversion requires landlords to negotiate with delinquent tenants out-of-court before being able to file for eviction and sue. The program was born out of the pandemic as job loss and homelessness spiked.
The negotiations could result in landlords finding a way to quickly recoup what they’re owed and memorialize a plan to make sure a tenant stays current, perhaps saving the landlord in the long run if they can’t find a new tenant right away.
Since landlords can’t file for eviction until after a mandated negotiation, filings have dropped precipitously in Philadelphia. Court filings in the city are down 41 percent in the 12 months through June compared to the annual average between 2016 and 2019, according to Princeton’s Eviction Lab.
The process could mean tenants avoid having an eviction on their record that could follow them as they try to obtain housing in the future. They may agree to move out before it ever gets to the court proceedings, or try to tap the city’s public rental assistance fund.
The drawbacks for landlords, however, are more apparent. In some cases, the negotiations may only delay the inevitable, landline landlords back in the same eviction process, but behind schedule; landlords want to speed up the eviction process on renters who don’t abide by their agreements.
Additionally, renters are eligible for the diversion program for reasons other than nonpayment of rent, something the Philadelphia Apartment Association is pushing against.
Read more
Commercial
Philadelphia
Philadelphia pilots cash for renters
Development
Philadelphia
Developers expanding Philadelphia multifamily project by 40%
Development
Philadelphia
South Philly developer plots $100M multifamily project