Stable housing is increasingly out of reach for many Americans, as both rentals and homes to own grow more expensive and options dwindle. Evictions may be one of the most visible manifestations.
The Georgia State authors compiled evidence that eviction proceedings can be predatory: “Filings can be the beginning of a forced removal process, but they are also frequently a tool used to enforce the collection of rent and fees,” they note. The Georgia-based authors draw their own conclusions. “Serial filers may cater to tenants who are economically fragile and, like banks charging overdraft fees, they may have identified a way to capitalize on this fragility,” they write.
They see a parallel to another trend in the mortgage market, one that had big repercussions in the housing crisis of a decade ago: “The shift from smaller-scale owner-operators to large, corporate owners using larger property management operations is reminiscent of the transition in mortgage lending from primarily portfolio lending up through the 1970s to an originate-to-distribute business model in which lenders sold off loans after originating them.
What can be done? The authors suggest several policy prescriptions. It’s not enough to make evicting a tenant more expensive, because landlords might simply pass on the higher fees to the tenants. Instead, the authors suggest requiring longer notice periods preceding evictions. Also, requiring or expanding legal representation for tenants could deter serial evictions and also protect tenants.