Atlanta Fulton Co - Past Due Rent Collection Options

[Tom O.]

Hello all,

I have a condo in midtown Atlanta and I had to do an early lease termination due to non-payment.  My tenants moved out as requested and I did not have to go through the eviction process, however there is a well documented 2400.00 owed to me.  I have records of all amounts due, and all correspondence (and facebook photos of their trip to Mexico!!).  I offered to accept 2 installments of 50% each, over a month and they countered with $100.00 a month for the next two years starting in May, which I turned down that agreement.

For those with experience in Fulton County Georgia, what are my best options? Small claims court or a collection agency (or other)?  Really appreciate the feedback from others who have been through this process in this county/state.

[Joel Owens]

Tom first question before spending time and resources is "Are they collectible?".

When you first rented to them you should have collected an extensive file on their ability to pay.

Had you filed eviction against them then they would need to file a response with the court. You name all people on the lease and "all others". That way when the Marshall comes they all will be removed from the property whether you know they are living there or not.

When you file with the court for eviction the tenant has a certain amount of time to respond with the the notice they get. The Marshall tries to deliver it directly and have someone sign. If nobody signs and it is mailed and taped to the door then you cannot get a judgment at the hearing UNLESS the tenant filed and signs an answer to the court. If they do that then even if they do not show up the judge could grant  a judgment in your favor at the eviction hearing. 

If they do not file an answer or were not personally served for who was on the lease then the judge can grant eviction but not a judgment.

In that case you have to proceed to small claims court against the former tenant and try to win a judgment there.

You said instead of eviction there was an early termination agreement. What does that say regarding any unpaid fees or back rent? If it didn't address that issue you could have a problem getting a judgment down the line.

Even if you get a judgment does not mean you will be able to collect. If the tenants make under the poverty level for Federal guidelines for income then you cannot garnish their wages. If they are already being garnished for wages then there is a max amount each check that can be taken out and that total amount is split with the other people taking garnishments from them. If they get cash under the table then you will not be able to garnish that money.

You could also try a one time bank levy. All of those require a bunch of steps to complete. Do these people care about their credit?

One way to look at this is you got them out peacefully and saved on additional months of lost rent. You could try for a reduction to settle all at once and move on or file the small claims court. If you file they might see you are more serious about the situation and want your money now. They might agree to a larger settlement for it to go away.

If they get a judgment and then garnishment etc. it could really impact them in a negative way. If credit is trashed they might not care anyways.

Collection companies and attorneys lead to poor results trying to collect on a judgment. Usually you use a judgment recovery company and they pay for court fees and costs and you split what is collected 50/50. It can take years to collect. Additionally you could sell off the rights to the judgment and be done with it and get payment now but usually get 15 to 25 cents of the full value on the dollar.

No legal advice given.