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Updated about 10 years ago on . Most recent reply

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Michael L.
  • Houston, TX
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12
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Unpaid Rent - Tenant Moved Out

Michael L.
  • Houston, TX
Posted

Dear Experts,

I had a tenant who was two months behind and under the threat of having an eviction on his record agreed to voluntarily move out and pay the owed amount at a specified later date. I drafted a document using one of the templates online saying that tenant is moving out and landlord is regaining a full possession of the property. We've added a clause with an agreed amount that tenant owes to landlord as a delinquent rent and it is to be paid on or before a certain date. We both signed the document and tenant did move out as per our agreement. 

Now my question is about the money. I tried getting tenant's new address, but he wouldn't give it to me. He doesn't want to communicate and I get an overall feeling that he won't just magically show up with the money to pay as specified in our agreement. What are the ways for me to chase that money past due date? Does the document give me any new options of addressing the collection?

I've already rented the place to new tenants, but would still like to recover at least some of the money.

Really appreciate your advice!

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Curtis Bidwell
  • Rental Property Investor
  • Olympia, WA
742
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777
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Curtis Bidwell
  • Rental Property Investor
  • Olympia, WA
Replied

Not positive of the exact form, but it might be IRS form 1099-C.  It's for forgiveness of debt.  If your not getting paid (which is highly unlikely that you will), then they are responsible for the "income" of the amount "forgiven"! 

You don't need their address, just their name and ss# which you have on your application.  Won't it be a surprise next year when they get their tax non-return ;)

  • Curtis Bidwell
  • Podcast Guest on Show #95
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