IHSG Insurance

What is the impact of eviction?

In recent years evictions have taken center stage in the United States and around the world. The impacts of which can be far reaching.

According to a recent Gallup Poll, homelessness is the fourth most important non-economic issue facing our county today. It should come as no surprise that evictions lead directly to a higher rate of homelessness. The National Low Income Housing Coalition cited a study that found for every one percent increase in eviction filings there was a .205 person increase in sheltered homeless per 10,000 people the following year.

There are many reasons why we see this increase in sheltered homeless. After an eviction there are monies still owed to the evicting landlord. This is reported and virtually no other property manager will accept a new tenant with a balance owed.

Even after a previously owed landlord is fully repaid, property managers still view tenants with previous evictions as a higher risk. This makes it much more difficult to find a new home to rent.
Evictions can be one off events due to temporary financial hardship. This can be especially true in contemporary times with sharply increasing rents.

There is founding for the concerns of property managers regarding prior evictions, however. An analysis by TransUnion uncovered that residents who are evicted had three times as many prior evictions and twice as many rental-related collections compared with non-evicted residents.

There can be other serious financial consequences that come with eviction, including lower income. A Yale study in Chicago and New York uncovered this. It found that on average, earnings decreased by $1300 in the first year and $2400 in the second.

The same Yale study found that evictions are often caused by job loss or declining health. Furthermore, it found these issues can begin up to two years prior to an eviction proceeding.

is here to help. With our suite of products we can protect the financial interests of landlords and property managers as well as their tenants.

One such product being developed is involuntary unemployment insurance, the leading cause of eviction according to The Law Offices of Seth Rosenfeld.
The other products offered by

ensure rent is paid even if an eviction takes place. This serves two purposes:

1) Post eviction, tenants owe and not a previous landlord – this avoids automatic disqualification when applying for future homes to rent.

2) It ensures property managers won't be left with collections accounts even in the event of an eviction – this helps prospective tenants with prior evictions or rental collections better qualify when applying to rent a new home.