Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

12
Posts
0
Votes
Michael L.
  • Houston, TX
0
Votes |
12
Posts

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!

User Stats

1,057
Posts
594
Votes
Kimberly H.
  • Residential Real Estate Broker
  • Chicago Suburbs, IL
594
Votes |
1,057
Posts
Kimberly H.
  • Residential Real Estate Broker
  • Chicago Suburbs, IL
Replied

@Michael L. 

 they called it flat fee collection.

User Stats

5,116
Posts
5,168
Votes
Kyle J.
  • Rental Property Investor
  • Northern, CA
5,168
Votes |
5,116
Posts
Kyle J.
  • Rental Property Investor
  • Northern, CA
Replied
Originally posted by @Michael L.:

What exactly puts a delinquent account into one's credit report? Is it triggered by a judgement? I might just do that to make sure he has it in there for everybody to see until the time he pays me.

 You could use a service as simple as this one: Debt Reporting Service

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

12
Posts
0
Votes
Michael L.
  • Houston, TX
0
Votes |
12
Posts
Michael L.
  • Houston, TX
Replied

Thanks, Kimberly. I just saw your post right after I submitted mine.

Thanks, Kyle and Joe.

I'll wait until the debt is due and make a final attempt to contact him. Then use reporting or collection agency. Looks like it's easier now than I have anticipated.

Really appreciate all the advice.

User Stats

205
Posts
44
Votes
Robert Carl
  • Investor
  • Baltimore, MD
44
Votes |
205
Posts
Robert Carl
  • Investor
  • Baltimore, MD
Replied

@Kimberly H. 

@Kyle J. 

Good advice and something I didnt know. Now I can add that to my tool box for collections.

User Stats

205
Posts
44
Votes
Robert Carl
  • Investor
  • Baltimore, MD
44
Votes |
205
Posts
Robert Carl
  • Investor
  • Baltimore, MD
Replied

When I answer any post on BP? I will try to tell you the proper solution and what my happen. Not say its not worth it. Thats not an answer to the problem or solution if you want to pursue something. If I listen to many BP members when I asked the question on here I wouldn't have found out how simple and non time consuming it was to sue and garnish wages for unpaid rent in my state.

User Stats

205
Posts
44
Votes
Robert Carl
  • Investor
  • Baltimore, MD
44
Votes |
205
Posts
Robert Carl
  • Investor
  • Baltimore, MD
Replied
Originally posted by @Robert Carl:

When I answer any post on BP. I will try to tell the proper solution and what may happen. Not just say its not worth it. Thats not an answer to the problem or solution if you want to pursue something. If I listened to many BP members when I asked the question about collecting unpaid rent on here I wouldn't have found out how simple and non time consuming it was to sue and garnish wages for unpaid rent in my state.

User Stats

4,335
Posts
4,237
Votes
Greg H.
Pro Member
  • Broker/Flipper
  • Austin, TX
4,237
Votes |
4,335
Posts
Greg H.
Pro Member
  • Broker/Flipper
  • Austin, TX
ModeratorReplied

@Robert Carl 

But what you did find out from BP is that you cant garnish wages in Texas

  • Greg H.
  • User Stats

    205
    Posts
    44
    Votes
    Robert Carl
    • Investor
    • Baltimore, MD
    44
    Votes |
    205
    Posts
    Robert Carl
    • Investor
    • Baltimore, MD
    Replied

    @g     yup

    @Greg H. undefined

    User Stats

    36
    Posts
    9
    Votes
    Nina Sylvains
    • Real Estate Investor
    • Oakland, CA
    9
    Votes |
    36
    Posts
    Nina Sylvains
    • Real Estate Investor
    • Oakland, CA
    Replied

    @Michael L. undefined

    What template did you use? I'm in the same situation and wanted to get a contract for my tenant to sign stating that she knows she owes back rent (5 months worth!) and will pay it back. I'm in Oakland, Ca and this city is not friendly to Landlords. If anyone has any information that is specific to Oakland concerning this situation it is greatly appreciated!

    Best, 

    Nina