January 13, 2026
Evictions cost landlords between $3,500 and $10,000 per case, factoring in legal fees, lost rent, and property turnover. Worse, landlords only recover about 17% of unpaid rent through debt collection. Embedded rent protection offers a better solution: for about 5% of monthly rent, landlords can secure coverage for 1–6 months of unpaid rent, avoiding the hassle and unpredictability of evictions.
For landlords, the choice is clear: pay a small, predictable fee for rent protection or risk unpredictable, high eviction costs.
Evictions come with a hefty price tag, starting with court filing fees that range from $50 in some areas to as much as $450 in states like California [2][3]. Serving an eviction notice adds another $30 to $150, and changing locks post-eviction typically costs around $150 [1][2]. Attorney fees are another major expense. For straightforward, uncontested cases, legal costs can run between $300 and $1,000. However, if the case is contested, fees can skyrocket to over $5,000, with attorneys charging hourly rates of $150 to $400 [5]. These are just the upfront costs - hidden expenses often hit landlords even harder.
The biggest financial blow comes from lost rent. During the average 2–3 month eviction process, landlords lose approximately $2,540 in rental income [2][5]. On top of that, fixed costs like mortgage payments, property taxes, insurance, and HOA dues continue to pile up, putting additional pressure on cash flow.
"While property managers obsess over $300 in attorney fees, the lost rent from vacant units for 2-3 months costs 5-10 times more." – Snappt [5]
Then there’s the cost of turning over the property, which can range from $1,750 to $4,000. Professional cleaning alone costs between $110 and $350 for apartments and $450 to $650 for houses [5]. If the evicted tenant caused property damage, those repair bills can range from $200 to well over $5,000. And let’s not forget the time investment - landlords often spend countless hours handling paperwork, attending court hearings, and managing repairs, time that could otherwise be spent on growing their business [5]. These disruptions highlight the importance of having safeguards like rent payment protection in place.
Evictions don’t just dent profits - they can completely halt income. For example, in cities like Chicago and Detroit, tenants often stayed in the property for 4–5 months after an eviction was filed [3]. Even a single month of vacancy can result in an 8–10% loss in rental income [5]. Property management companies may also add eviction-specific fees, typically ranging from $300 to $500, which aren’t covered under standard agreements [5].
Recovering unpaid rent is another uphill battle. Even if a landlord wins a court judgment covering legal fees and unpaid rent, collecting that money is a different story. On average, landlords only manage to recover 17% of these debts [2]. As one expert bluntly put it:
"Winning a judgment for $5,000 in eviction costs means nothing if the evicted tenant has no money or assets to collect from." – Snappt [5]
Embedded rent protection offers a smart, cost-effective way to handle tenant risk while avoiding the hefty expenses tied to evictions. Instead of shelling out $3,500–$10,000 per eviction[5], landlords can invest a much smaller amount upfront. For example, comprehensive tenant screening with income verification costs only $35 to $50 per applicant[5]. This means landlords can screen nearly 100 tenants for the price of one eviction. That’s a staggering 100:1 cost advantage. As James Hyde, CEO of Snappt, puts it:
"The 100:1 cost differential makes upfront verification the most cost-effective strategy." [5]
Additionally, rent coverage products act as a financial safety net, guaranteeing rent payments even if tenants default. This proactive approach helps landlords sidestep extra expenses, such as legal fees ($500 to $5,000+), court filing fees ($50 to $500), and sheriff enforcement fees ($30 to $400)[5]. These savings not only reduce costs but also improve cash flow stability.
Embedded rent protection doesn’t just save money - it also keeps cash flow steady during tough times. By reducing the likelihood of tenant eviction, it ensures consistent rental income. In fact, tenants covered by these protections are less than half as likely to face eviction[7]. Moreover, about 15% of evicted tenants could have resumed payments if given additional support[4]. This kind of stability is invaluable for landlords looking to maintain predictable income streams.
One of the standout benefits of embedded rent protection is how easy it is to integrate into the leasing process. It works seamlessly with tenant screening procedures, including fraud detection and income verification, which can be completed in just minutes. This eliminates the need to navigate the complex and time-consuming maze of state-specific eviction laws and court schedules[5]. As Elsa Liao, VP of Risk Management at TheGuarantors, emphasizes:
"Eviction should not be the first response. Rather, it should be a last resort." [1]
Eviction Costs vs Rent Protection: Side-by-Side Comparison for Landlords
After examining the direct expenses and hidden repercussions of evictions, let’s compare these challenges with the benefits of embedded rent protection. The contrast between these two approaches couldn’t be more stark. Evictions drain resources and create unpredictable gaps in cash flow, while rent protection transforms uncertain risks into fixed, manageable costs.
As outlined earlier, the financial burden of evictions is steep. Embedded rent protection, on the other hand, typically costs about one month's rent annually - or approximately 5% of the monthly rent per tenant - and covers 1–6 months of unpaid rent [21,28,27]. This system shifts unexpected losses into a predictable expense, whereas debt collection after an eviction has a success rate of only about 17% [2].
The implementation process also highlights key differences. Evictions involve navigating state-specific regulations, filing legal paperwork, attending hearings, and coordinating with law enforcement. This process can take anywhere from 3–4 weeks to several months [5,6]. In contrast, rent protection integrates seamlessly into property management platforms or online applications, with automated income verification typically completed within minutes to 72 hours [8]. As Jason Van Steenwyk from All Property Management puts it:
"Paying a small premium is a reliable alternative to risking thousands in eviction-related losses." [10]
Here’s a side-by-side comparison of the two approaches:
| Factor | Eviction Process | Embedded Rent Protection |
|---|---|---|
| Total Cost | $3,500–$10,000 per case [5,20] | ~$40–$45 per screening or ~5% of monthly rent [21,28] |
| Time to Resolution | 1–5 months [6,27] | Instant to 72 hours [8] |
| Cash Flow Impact | 2–3 months of lost rent [2] | Stabilized with predictable payments [9] |
| Implementation | High difficulty: legal filings & court appearances [2] | Low difficulty: integrated during leasing [26,28] |
| Debt Recovery | ~17% success rate [2] | Coverage for 1–6 months of lost rent [9] |
For landlords, the decision is straightforward: opt for a small, predictable cost now or risk unpredictable, significant losses later. With payment issues ranking as a top concern for property owners [2], the proactive route offers clear financial advantages.
Evictions are a costly ordeal, draining resources through lost rent, legal fees, and property turnover. Embedded rent protection transforms these unpredictable losses into steady, fixed expenses, typically amounting to about 5% to 7% of annual rent [11][12]. Even when landlords win a judgment, only 17% of rental debt is usually recovered [2]. This stark reality highlights the need for a proactive strategy.
The challenges of eviction - months of unpaid rent, legal expenses, and operational disruptions - make cash flow stability a top priority. Rent protection kicks in after 30 days, covering 6 to 12 months of rent and absorbing legal costs, which can exceed $5,000 in contested cases [13][6]. This ensures landlords maintain reliable income even when tenants face hardships like job loss or illness.
"The best eviction is the one that never happens" [5].
Proactive screening and rent protection provide a massive cost advantage - up to 100:1 - compared to reactive eviction expenses [5][2].
For landlords looking to secure their income, Walnut Insurance offers embedded rent payment protection. This seamless solution integrates directly into property management systems, covering tenant defaults while taking care of compliance and claims.
The choice is clear: pay a small, predictable premium now or face the risk of unpredictable, costly losses later. With 84% of landlords identifying payment issues as their biggest concern [2], proactive rent protection is a smart move for long-term financial stability.
Embedded rent protection is a form of group insurance designed to safeguard landlords' rental income when tenants encounter unexpected financial hardships, like losing their job or dealing with health problems. This insurance steps in to cover rent payments for a set period, ensuring landlords maintain a consistent cash flow.
Instead of resorting to costly evictions - which often come with legal fees, lost income from vacant properties, and turnover costs - embedded rent protection offers a more cost-effective and practical alternative. It provides reassurance to landlords while also giving tenants some breathing room during tough times.
Opting for rent protection over eviction proceedings can save landlords in the U.S. a significant amount of money. Evictions often come with hefty costs, including legal fees, court filings, and administrative tasks. Beyond that, landlords frequently deal with weeks of lost rent, expenses for cleaning and marketing the property, and the possibility of prolonged vacancies - all of which can take a toll on cash flow.
On the other hand, embedded rent protection policies - commonly referred to as rent guarantee insurance - offer a more predictable and efficient solution. These policies cover missed rent when a tenant experiences income disruptions, eliminating the need for expensive and time-consuming court cases. By stabilizing cash flow and reducing turnover costs, rent protection provides a more practical and reliable alternative to traditional eviction methods.
Adding rent protection to a lease is straightforward and convenient. Many providers design their policies to fit seamlessly into the leasing process, often as part of a guarantor or lost-rent program. These policies are typically included in the lease agreement at the time of signing and managed through an online platform, keeping things simple for landlords.
Here’s how it generally works:
Since the coverage is integrated into the lease, there’s no need for separate contracts. The cost is usually passed on to tenants or added as a small fee, making it an easy and efficient addition to the leasing process.