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Updated 18 days ago, 11/05/2024

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Chris G.
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Sending Tenant to Collections Without Application?

Chris G.
Posted

Wanted to know if it's possible to send a tenant to collections after a move out/ evictions for additional charges the security deposit didn't cover. We've ran into an issue where if we take a tenant over from a previous management company or a tenant the owner had put in place we don't have any "applications". The only documents we have would be a signed lease, and tenant ledger. The collections agency we use currently says that without an application they can't do anything. Is this true for all agencies?

For example we took over a property from another management company and they only provided us with the lease and ledger and refuse to give us the application (this has happened many times). A month later the tenant moved out and owed rent and damages around $3,000. The collections company said sorry we can't do anything since you don't have an application for that tenant. This would be based in Florida and if there's any companies you can recommend who would accept it without an application.

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Greg Scott
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  • Rental Property Investor
  • SE Michigan
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Greg Scott
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#4 Off Topic Contributor
  • Rental Property Investor
  • SE Michigan
Replied

This seems wrong.  The application is not a binding legal document. 

We have people that apply that we reject because they do not meet the criteria.  We have people that apply that are accepted, but they cancel for some reason.  Either case shows the application is not binding.

The lease, however is a binding legal agreement. That should be all you need unless there is something strange with Florida law. 

I'd check with another collections agency.

PS. Many management companies archive or destroy old applications because they do not want to be responsible for SSNs getting out to identity thieves. 

  • Greg Scott
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    Justin Brin
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    Justin Brin
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    Replied

    Hi @Chris G., I'm wondering doesn't it need to first go through court?

    Any landlord that thinks a tenant owes him something can file a collection and mess up their credit?

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    Nathan Gesner
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    Nathan Gesner
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    ModeratorReplied
    Quote from @Chris G.:

    I'm not aware of any requirement for this.

    I do provide an application because it has a lot of information necessary for tracking the individual: social security number, driver license number, previous addresses, etc.

    When you take over an existing renter, I recommend you figure out how to get the entire file from the former manager/landlord. They should send you all documents about that tenant. They don't have to share the screening results, but they should share the actual application filled out by the tenant. If they don't, consider involving an attorney.

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    Jonathan Greene
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    Jonathan Greene
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    ModeratorReplied

    I would chalk situations like this up to the cost of doing business when the security doesn't cover the damage unless it's exorbitant. Especially so when taking over from another company mid-lease (do you do inspections of all units before taking over). I would be aggravated too, but it seems like one of those things where the effort to get juice from a stone wouldn't be worth it.

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    Laura Stayton
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    Laura Stayton
    • Property Manager
    • Delaware
    Replied
    Quote from @Chris G.:

    Wanted to know if it's possible to send a tenant to collections after a move out/ evictions for additional charges the security deposit didn't cover. We've ran into an issue where if we take a tenant over from a previous management company or a tenant the owner had put in place we don't have any "applications". The only documents we have would be a signed lease, and tenant ledger. The collections agency we use currently says that without an application they can't do anything. Is this true for all agencies?

    For example we took over a property from another management company and they only provided us with the lease and ledger and refuse to give us the application (this has happened many times). A month later the tenant moved out and owed rent and damages around $3,000. The collections company said sorry we can't do anything since you don't have an application for that tenant. This would be based in Florida and if there's any companies you can recommend who would accept it without an application.

    We always have tenants we take over complete an application with us in the first few weeks.