The “cost of a bad tenant” isn’t a single line item — it’s three compounding ones. This is what you’re really managing risk against.
Unpaid rent
Ruckus pays month one. Maybe two. By month four you’re carrying mortgage + utilities + insurance with zero revenue — and you can’t legally remove him until the court agrees with you. In Virginia, that takes 30–90 days at best.
Property damage
The damage you can see costs money. The damage you can’t see — water behind walls, pet urine in subfloor, a refrigerator that ‘smells funny’ — costs more. Most owners only find half of it before the next tenant signs.
The eviction process
Court filing fees. Sheriff service costs. Attorney consultation. Lock changes. Cleanout. The 4–6 weeks of vacancy AFTER the eviction is granted, before the next tenant moves in. That’s where your year’s yield goes.
Across all three categories, the total bleed runs
And that’s for ONE bad placement. Most owners get screened poorly twice before they switch managers.