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Updated almost 11 years ago on . Most recent reply

User Stats

74
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43
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Angie B.
  • Rental Property Investor
  • Chattanooga, TN
43
Votes |
74
Posts

Collecting Damages after Move-Out

Angie B.
  • Rental Property Investor
  • Chattanooga, TN
Posted

We are still fairly new to this- we've had two turnovers- one was very easy (next tenants moved in the same day, we didn't even have a chance to shampoo carpets for them) and the second, well, due to smoking, cigarette burns in carpet, and cat pee, among other small damages and missing things, the total bill exceeds the security deposit and pet fee. We will be trying to collect an additional $900 from our former tenant. I am pretty sure she will be unable to pay the total within 30 days. I think she will offer to make payments. What would you do? Accept payments? Charge 1.9% interest on remaining balance each month? Take her to small claims court? Tell her we'll knock off $100 if she will pay it all this month? I know she will ask- and I think the longer it drags out, the less likely we will get paid.

Most Popular Reply

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1,057
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464
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Kyle Hipp
  • Investor
  • Appleton, WI
464
Votes |
1,057
Posts
Kyle Hipp
  • Investor
  • Appleton, WI
Replied

You do not need to get a judgment for them to pay their damages. However it may be difficult to get them to willingly pay. I determine my path on a case by case basis. I have no real rush to file a claim in court so I spend some time attempting to collect outside of that path but use it as leverage. Iusually will say I have $900 in uncollected damages in my security deposit return form with a very detailed breakdown of costs and time. I will attempt to work out a payment plan that works for them and that they can keep. So I might say, I will accept $600 with $200/m payments due on the 15th of the next 3 months. Some negotiations might need to take place to make sure it is agreeable. Then I let them know that if we can not work it out, I can file in court and that will be for the full $900 plus court costs.

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