For some, eviction business a boon

Property owners across the country bear a burden in the recession: paying a fortune in moving and storage costs to evict tenants who fail to pay their rent.

But the owners' losses are a boon for companies that clear out homes. Their business has skyrocketed, "making money out of people's misery," said David Robinson, an attorney for Legal Services NYC, which helps low-income New Yorkers navigate the eviction process.

Hardest-hit are ethnic urban neighborhoods, where about twice as many renters are forced to leave as in the general population, housing experts say.

Low-income black women, often single mothers, are the most likely to be evicted because they can't afford their rent, recent research showed.

For the movers, "it's a lucrative business, absolutely," said Eli Navon of Eagle Van Lines, a New Jersey-based company that executes eviction moves in the greater New York area. Such jobs typically bring extra money because "you have to pack every single thing, from the dishes to the furniture, and sometimes even garbage; we're not allowed to throw anything out," he said.

His clients pay an average of $2,500 to clear out a two-bedroom apartment, Navon said. The property owner must also pay for a storage unit to hold the tenant's goods for 30 days.

That's how long tenants in New York and New Jersey have to pick up their belongings before they're discarded or auctioned off as a lot. And some owners take on additional cost when they hire an attorney who specializes in evictions.

Kick 'em Out Quick is a nationwide, online referral service warning owners that "nonpaying and nuisance tenants cost you time, money and serious risk to your property. . . . Take control and protect your investment." In January, the service posted its Nightmare Eviction of the Month, from Ogden, Utah. The landlord waited five months before filing to evict the tenant, who owed $5,600 in back rent, plus $8,700 in damages. Total loss to the property owner was $14,300, before moving costs.

After New Year's, "my phone is ringing nonstop," said Gregory Gosset, managing director of Ogden-based Kick 'em Out Quick, which fields queries from landlords seeking attorneys who handle eviction cases. Judging by the volume of calls he's getting, "It's gotten worse," he said.

A study conducted in Milwaukee showed that one of every 20 renter-occupied properties is evicted each year. In mostly black neighborhoods, the rate is one in 10 households.

"The odds of a woman being evicted in black neighborhoods is twice that of men," sociologist Matthew Desmond said. "It's quite stunning."

In Brooklyn, AAA Moving makes more than $120,000 a year from evictions, accounting for about 20 percent of its revenue, according to manager Mike Edelman, who said his company charges $35 an hour for each employee, plus packing materials and storage.

In 2007, New York's housing court reported about 700 evictions citywide; two years later, there were more than 1,100. The numbers have tapered off slightly in the past few years.

In certain communities, like Suffolk County, the law allows a property owner to leave a tenant's belongings on the sidewalk.