What is a Constructive Eviction?

Published by Thomas Herold in Laws & Regulations, Real Estate

'Constructive Eviction' is explained in detail and with examples in the Laws & Regulations edition of the Herold Financial Dictionary, which you can get from Amazon in Ebook or Paperback edition.

Constructive eviction is a backdoor way of evicting a tenant. It is not done through legal means because of a tenant failing to pay rent or seriously breaking the property rules. It is instead the process of a landlord making a rental uninhabitable for the tenant. Though the term sounds positive, it is quite the opposite. Landlords who engage in this type of eviction are failing to carry out their legal obligations.

For constructive eviction to take place, a residential rental property must deteriorate into enough disrepair that it becomes very difficult or near impossible to live in the property. It could also be that the landlord allows a condition to exist that makes inhabiting the home or apartment intolerable. As the condition becomes so severe that the property is no longer fit to live in, the tenant is forced to leave. An uninhabitable property exists in a state that compels the renter to move away, or to be constructively evicted. Because the renter is incapable of completely utilizing and possessing the property, he or she has been evicted technically.

There are a number of way in which a tenant could be a victim of constructive eviction. The landlord might turn off the electricity, gas, or water utilities. The owner might disregard an environmental problem such as toxic mold or flaking off lead paint and not properly clean it.  He or she could also not fix leaking roofs. This causes water damage to walls and eventually leads to mold. The owners could block the unit entrance or change the locks. They might do something extreme such as take out sinks or toilets from the property as well. When the conditions deteriorate to the point that tenants abandon the rental then constructive eviction has occurred.

A landlord might engage in this type of unethical behavior because of rental controls. Many cities limit the amount by which rent can be increased. They may also allow the tenant to remain in the rental with an automatically renewing lease so long as they fulfill the contract obligations.

Tenants have the ability to fight back against this type of eviction. This starts with providing the owner a notice in writing of the constructive eviction. The landlord must be given a fair amount of time to address the issue. This may not translate to an instant repair that happens in 24 hours. Many repairs require more time to have completed. Water and gas leaks are examples of these. Still the repairs have to be done in a time frame that is reasonable.

Renters who find themselves in living conditions that are poor should take pictures. They also should invite independent inspectors to examine the property. These types of inspectors come from the permit or building department, as well as from the area health department.

When landlords are unwilling to address the uninhabitable living conditions in a reasonable time frame after having been given fair written notice, renters have rights. They are usually allowed to leave the property without having to pay rent that would still be owed according to the rental or lease agreement. In general, tenants have to move away from the property while they begin the legal process of terminating the lease and suing the owner for damages.

It is often better to compel the owner to make the necessary repairs or to address the issues that are creating the uninhabitable living conditions on the property in the first place. This is easier in cities and states that have strong legal enforcement of the landlord obligations. New York City and state are an example of places in the United States that make it difficult for owners to practice constructive eviction by requiring that they fulfill their maintenance duties.

Free Download (No Signup Required) - The 100 Most Important Financial Terms You Should Know!
This practical financial dictionary helps you understand and comprehend the 100 most important financial terms.

The term 'Constructive Eviction' is included in the Laws & Regulations edition of the Herold Financial Dictionary, which you can get from Amazon in Ebook or Paperback edition.