Tenant Default & Eviction Calculator
Eviction + vacancy period
Direct Capital Impact
At 6% Cap Rate
🛡️ Risk Interpretation
A tenant default is more than just a month of missing rent. For commercial landlords, the **Total Cash Impact** includes the cost of the eviction process, the physical turnover of the unit, and the leasing commissions required to find a replacement.
The Silent Killer: Value Destruction
When a unit goes dark, your **Net Operating Income (NOI)** drops. Because commercial properties are valued based on a dynamic Cap Rate, a $60,000 annual rent loss doesn't just cost $60,000—it can destroy **$1,000,000+** in property valuation (at a 6% cap). This is why lenders track DSCR so closely.
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Expert FAQ
What is a "Cash for Keys" settlement?
This is an informal agreement where the landlord pays the tenant a small sum to vacate the property immediately and voluntarily. It is often significantly cheaper and faster than paying legal fees and waiting months for a court-ordered eviction.
How much does a typical commercial eviction cost?
Legal fees alone can range from $2,500 to $10,000+ depending on the complexity and state laws. When you add lost rent, court costs, and physical repairs, the total financial impact often exceeds 3-6 months of rental income.
Can I lock out a tenant who hasn't paid rent?
Generally, NO. Most jurisdictions prohibit "self-help" evictions. You must follow a strictly defined legal process involving formal notices, a court hearing, and a sheriff-led lockout. Violating this can lead to massive lawsuits from the tenant.
Does a lease guarantee affect eviction recovery?
A "Personal Guarantee" allows you to pursue the individual owner's personal assets (cars, bank accounts) for the unpaid debt after the eviction. Without it, you are limited to the assets of the business entity, which may be insolvent.
What is a "Writ of Possession"?
This is the final court order that authorizes local law enforcement (usually the Sheriff) to physically remove the tenant and their belongings from the property and return legal possession to the landlord.