Ever worth going after tenants for rent owed?

[snowbank]

What I've heard from most is when someone breaks a lease and/or doesn't pay rent it's usually not worth it to go after them for it. Well, when is it worth it? Isn't there some sort of way to have a judge order money from their job to go to a landlord if they owe them money? Or is it just a judgement floating around forever that they'll never have to pay?

 

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[Inphinity]

Isn't there some sort of way to have a judge order money from their job to go to a landlord if they owe them money?

I believe this depends on local legislation, I know a few years ago now my grandparents had a problem with a tenant owing about two weeks rent and doing a runner, and were told they could go through court proceedings which would recover the money providing the tenant had sufficient income or assets for the amount to be drawn from - but there were conditions like they had to file applications (with fees, which would not be recovered from the tenant), and also had to give the former tenant a copy of the notice of court hearing (and without a current address for the tenant, cost to do this was going to be more fees). In the end, it was going to take about 4 months and cost something like $700 to get about $400 in rent back - assuming the tenants had the money or had an income for it to be taken from.

I know that doesn't really answer your question, and perhaps someone more familiar with your local laws can help clarify - but it is confirmation that in some areas at least, the money can be taken from income.

 

[snowbank]

Also, is there any difference if there is damage done to your property? Any easier to collect in that case?

 

[rcardin]

Chances are slim of ever getting money from them. Write off the loss to the business.

 

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[Runum]

Texas won't allow for garnishment of wages except for taxes and child support. I haven't seen that it would be worth it to go after the scoundrels.

 

[andviv]

I remember a company that once approached me with a service...

You sign a letter so they can represent you in court and, once the judge approves it, file a judgment against the tenant. They would keep 40-50% of the money recovered. Their initial fee was something like $200, so it was not worth for me to throw good money after bad and passed.

I don't have their contact info anymore, but I know a service like that may be worth it for you if the damages are a lot.

 

[hatterasguy]

No, think of it as throwing good money after bad.

 

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[GLC65]

This is a real good post. I am having my COO look into a way where we can report timely rents on all three national credit bureaus and report delinquents and skips. I will make a point to find out what my company does when we evict. I am sure we can give the deadbeats to a collection agency and have them pound on them and report them on the credit bureaus and when it comes time for them to purchase a home, the lender normally requires the outstanding judgements to be satisfied.

 

[randallg99]

I have properties in NJ and PA.

NJ:
attorney to process eviction $300+/-
another attorney to process judgement for garnishment $500+/-
collecting monthly checks a couple years down the road (priceless?) is like finding gold nuggets...
but you get the point... the only way it makes sense is if you're owed significant dollars which happened only once in my landlording career. I was too nice to these scumbags who couldn't rub two dimes together but had the nicest tv's and cars.

PA:
attorney to process eviction $225
attorney to process judgement $150
no garnishment because the rents are much cheaper and it's not worth the $ nor effort.

HOWEVER, make sure the judgement is made on PUBLIC records. Insist the attorney reports it to the credit bureaus!!!! I am not sure if it is done automatically or not, but it's crucial because on several ocassions I have been lucky to get a deadbeat ex-tenant from several years prior calling to offer payment in full to have the judgement removed....

 

[yveskleinsky]

The winners of court cases generally get court fees as well. Contact a local attorney to make sure, but I would think there shouldn't be a lot of out-of-pocket expenses that you wouldn't be reimbursed for.

 

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[randallg99]

The winners of court cases generally get court fees as well. Contact a local attorney to make sure, but I would think there shouldn't be a lot of out-of-pocket expenses that you wouldn't be reimbursed for.

there's been a lot of sympathy going on behalf of the tenants.... yes, if the landlord wins, then all court & attorney costs hypothetically become part of the award however there is a lot of pressure for landlord/tenant mediation which forces a lot of the costs to be split.

lastly - section 8 and other subsidized housing tenants by law in NJ are not subject to late fees or any attorney fees.... this is important to know for those in NJ who are renting to sec. 8 tenants who recieve partial payments and are responsible for the remainder.

bottom line to avoid a lot more loss, just send eviction letter within a week after the grace period expires to avoid incuring fees and unecessary delay.

 

[sthompson01]

Newbie question:

Shouldn't the deposit cover the expenses to market the vacant unit if the tenant decides to break lease?

:smxA:

 

[AroundTheWorld]

Newbie question:

Shouldn't the deposit cover the expenses to market the vacant unit if the tenant decides to break lease?

:smxA:

It is a nice theory, and it certainly helps . . . but if the tenant has left

Holes in the walls
Shredded or otherwise ruined carpets
Broken Windows
Trash Everywhere
Etc.
Etc.

Then the deposit will not cover it. Not even close.


Also.... tenant turnover costs more than one might initially imagine.
Not only are you out the days of vacancy but you are:

Out the days the tenant did not pay - - the time period from non-payment to eviction.
Power while the house is vacant
Ads / Flyers / Etc. to find a new tenant
Cleaning expense
Other repairs that need to take place
Property Management Fees.

And... all the time it will take you.

 

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[MJ DeMarco]

There are many battles in life that I could fight, and rightly win, but don't. The cost of these battles vis-a-vie the potential end result isn't worth fighting. They suck your time, energy, money, and mindset.

Just recently I had to "let go" a battle that I could, and would have won had I pursued it. However, I recognized that the "cost" of pursuit far exceeded any victory -- cost being my time, my energy, expenses, etc .... when you have to fight, or "go after" deadbeats and incompetence, it takes energy - not just the pursuit, but the entire process is toxic ... and I haven't even mentioned the lawyers yet, judicial systems ....

Me? I'd rather exterminate the situation - get them out of my life, write the loss off, identify the lesson (where I might have erred) and move on.

 

[AroundTheWorld]

but the entire process is toxic ... and I haven't even mentioned the lawyers yet, judicial systems ....

Excellent, Excellent point. ++ This can't be stressed enough.

While we have had several of these types of circumstances, there was one about a year ago that for some reason, REALLY got under my skin. I even wrote a rant about it on these forums.

We did x, y, and z for this person (positive things) and in turn, this person did x, y, and z to us (negative items). It got under my skin for a few days. I was angry, pissed, resentful, etc. We thought about going after this person in court. Even contacted the attorney.

Then I realized that if we pursue it, it will make it harder for me to get rid of the anger, resentfulness, etc. - - because I will have to continue to have that situation in my life.

Better to cut it out, quick and clean, clear your mind of the toxic situation, and move on to proactive, positive things in your life.