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Nonpayment Loss Calculator

A single nonpaying tenant can wipe out a year of cashflow on a small rental: past-due rent + eviction process rent + legal fees + damages often total $8K-15K, and the security deposit recovers only 15-25%. This calculator quantifies the full economic loss so landlords can size the cost of weak screening and price tighter screening criteria into their underwriting.

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$
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60-180 days varies by state

$

Net loss after deposit

$10,100

Total economic loss

$11,950

Past-due rent owed

$5,550

Eviction-process rent loss

$3,700

Deposit applied

$1,850

How the math works

A typical 3-month nonpayment + 2-month eviction = $9,250 in lost rent on a $1,850 unit. Add legal ($1,500) and damages ($1,200) and the deposit ($1,850) recoups only 17% of the $11,950 total loss.

Strict screening (3x rent income minimum, 600+ credit) prevents the vast majority of nonpayment events. The few units with stricter income/credit thresholds outperform the lower-screen units across the cycle.

How to Use

  1. Enter monthly rent and months tenant is behind.
  2. Enter security deposit, eviction legal fees, and eviction process duration.
  3. Enter estimated damages on exit.
  4. Read net loss after deposit applied.

Frequently Asked Questions

Eviction timeline by state?

Texas: 30-60 days. Most southern: 45-90. NY/CA: 90-180+ days. Eviction moratorium hangovers (post-COVID) extended timelines in some jurisdictions.

Recover from tenant?

Court judgment is easy; collection rate is 5-15%. Garnishment varies by state. Most landlords write off after attempting collection 6-12 months.

Insurance for nonpayment?

Some specialty 'rent guarantee' or 'lease default' insurance products cover 6-12 months rent for $20-50/mo per unit. Rare and most landlords self-insure via tighter screening.

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