Is it worth going after tenants in small claims court?

Question

Hello BP community,

In January, I made a post (http://goo.gl/B42l3t) detailing the woes I’d encountered while trying to wrangle payments from the two tenants in my 3BR SFH in Lansing, MI. It’s March now and, after stumbling through the court system & getting a writ of eviction issued, the tenants have finally vacated the property, leaving behind a mess of their junk.

My question to the community: is it worth trying to go after them in small claims to get the money I lost as a result of this process?

Here’s a short list of what I might try to claim:

1. Rent: $2,250 for three months or $3,000 if March can be counted, although I don’t know which day they left. Regardless, the unit won’t be ready this month.
	?2. Legal & court costs: $700
	?3. Cost to rekey, remove their junk, and clean up (including labor): about $300
	4. There may be additional repair costs from letting the pipes freeze

The total payment I might seek would be around $4,000 or more, which may not be much for some but would be big for me. Of course, the $750 security deposit I collected will also factor in. I don’t know where the tenants (a couple) have gone & do not have much info about them. I do know, however, that at least one works so there may be potential there to garnish wages.

So, do you think it’s worth it? Have you dealt with this before? How do you do it? I plan to research this thoroughly myself, but wanted to hear from experience first. Thanks for your help.

Joseph

Kurt K. · Answer

Just as a follow-up the small claims limit in Michigan is $5,000. No lawyer should be necessary. In Michigan you must represent yourself in small claims court, so unless your former tenant is in fact an attorney, you won't be up against one.

Aaron Montague · Answer

Had I been successful the court would have handled collections through the sheriffs office. They track down the person the judgement has been rendered against and garnish a "reasonable" amount of their income until the judgement is paid in full.

This was in VT.

Aaron Montague · Answer

Get a lawyer that works on a % basis. They will prepare your case better than you can hope to. I got destroyed in small claims court the first time I went because I wasn't ready and ended up going against a lawyer without one of my own.

Rob K. · Answer

When you took them to court, did you just get a judgment for possession only, or possession AND a money judgment?

If you got possession only, finding them will be difficult. Once you find out where they live, you will need to take them to court again to secure a judgment and then try to collect.

If you have a money judgment (hopefully) from your eviction, you can now collect by garnishment if you know where they work. If not, you can garnish the Michigan tax refund, but can only file those papers between November 1 and December 31.

Also, I think the small claims maximum in Michigan is $3,000, but they might have raised it.

Account Closed · Answer

Sorry, it's not worth it. No lawyer can take a case that small on contingency and paying hourly is good money after bad. Next time, get your money judgment during the eviction process, as Rob pointed out. Of course, you could go it alone in small claims court; it'll take some time and effort but you should be able to eventually get a judgment if you keep after it.

Joseph Montes · Answer

Rob K. the judgement was written so that no money judgement was entered "at this time" and also acknowledged the amount of rent owed at the time (which they signed a statement acknowledging) and that the defendant may be liable for money damages after moving if additional rent is owed or there was damage to the property. It seems like I may still be able to go after them.

To begin this process would I seek out a lawyer or collection agency or both? Do you know if fees for hiring a lawyer might also be collected to offset the cost? Thanks for your help.

@Chris K. Wouldn't that be nice!

Joseph Montes · Answer

Hey, @Kurt K.  thanks for the info. I read the same last night about small claims. It seems like there are a lot of steps, but think I'd have a pretty straightforward case, given that I have court documents they signed that admit they did not pay me, and that it would be feasible to collect from them.

An alliterative would be trying to bring a claim in circuit court with a lawyer. Has anyone attempted this?

Ceasar Blackman · Answer

@Joseph Montes as someone that has looked into a judgment business i would say it probably wouldn't be worth it. Most collections agencies will not take on a such a small judgement. Especially since it new, maybe a few years down the line it might be worth their time after some interest has accrued. A lawyer will not take it on again because it is too small. I would record the judgment against the person tho.

Joseph Montes · Answer

Thanks @Aaron Montague . That's good to know that they can work a percentage basis. Do you or anyone else know how the collection happens afterward?

Brian Mathews · Answer

It depends on your state laws.  In Texas you would get nothing.  Only the US government can garnish wages in Texas, a private individual can't.   You can screw them up a little bit by getting a judgment on them.  You just need to check with a lawyer, but I doubt you'll be seeing the full amount you are seeking.

Is it worth going after tenants in small claims court?

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