Investor · Johns Creek, GA · Member since 2014 · 22 posts · 2 votes
We have handful rental properties and manage them by ourselves. We have filed eviction to local county court numerous times and tenants moved out. However, we have never been able to collect unpaid rents (typical amounts few thousand dollars, 2- 3 months worth of rent). What is the realistic way of collecting unpaid rent, even partially ? Using a collection company, filing a claim to munincipal court ??
I have asked this questions to local REIA members, but no solid answer was provided... Do landlords simply give up ???
You already have the eviction, so that's good. The next thing you need to do is take that eviction and use it as the basis to obtain a judgment against the tenant for the unpaid rent and any property damage their deposit didn't cover when they moved out.
Once you have a judgment you're in a better position because they collect interest and, unlike most other debt, are renewable. This means you go after the tenant for the money long after most other debt would expire due to the statue of limitations.
Take the judgment to a collection agency: Google for "Judgment Recovery" to find one. They'll be able to move forward with additional collection attempts and, with that judgment, do things like levy bank accounts and garnish wages to get you your money back.
Collection agencies make money by taking a cut from whatever they collect.
Yes most landlords give up the likelihood of collecting in the near future is bleak.
Recently we have started turning out over to collection group who just harass them and eventually get something out on their credit and if one day they ever clean up their act to buy a house we may get paid.
Warning Shameless plug coming up next: The best way to protect your income on your rental property is by have a Rentsure membership. This protects you if the tenant doesn't pay you won't lose any rental income at all and it won't cost you the eviction and you won't be chasing them for the next 10 years hoping for a few scrapes of their money.
As a disclaimer i run Rentsure in the U.S.
You already have the eviction, so that's good. The next thing you need to do is take that eviction and use it as the basis to obtain a judgment against the tenant for the unpaid rent and any property damage their deposit didn't cover when they moved out.
Once you have a judgment you're in a better position because they collect interest and, unlike most other debt, are renewable. This means you go after the tenant for the money long after most other debt would expire due to the statue of limitations.
Take the judgment to a collection agency: Google for "Judgment Recovery" to find one. They'll be able to move forward with additional collection attempts and, with that judgment, do things like levy bank accounts and garnish wages to get you your money back.
Collection agencies make money by taking a cut from whatever they collect.
The eviction is the first step but you need to take step 2 and obtain a judgement for what's owed. And then step 3 would be to consistently renew the judgement before it expires. Some day that judgement on their record will haunt them into paying you something.
I do both. I can collect it for you, which we nornally see your money paid back within 6 months, or we buy your debt for 4 cents on the dollar, you get to erase some of your loss, and take the rest as a write off.
Your choice.
Places like rent sure are nice, but they cost you in the short and long term. Think of it like insurance, and realize if they werent making money, they wouldnt be doing it.
Sky, Jeff, Dick and Logan, Thank you guys ! This is very helpful.
1. Can any of you please advise how we can get the judgement ? We now have few tenants who already moved out and we have one who will move out this week as a result of the eviction filing.
2. Do collection companies only take the unpaid rents with the judgement, or they also take the one without the judgement ?
Hisashi N. I'm wondering if you found a good way to begin collecting unpaid rent. I've had 2 renters, placed by property managers so I had 1 month rental fee for each, that left before their lease was due and I think I'm about to have my 3rd (and final property manager placed tenant, we now place and manage them all ourselves) about to skip out as well. I've read about using collections agencies as they seem to stay with them forever until then need to open credit and then you can finally get paid. However, not sure of anyone that's used one and my lawyer didn't even mention that option either so...
Hello Every one. I am in a similar situation and need some ones opinion. I am currently procesing an eviction for failiture to pay two months of rent, how ever this is an inherited tenant from when I purchased the property whom I dont have any social security or ID information of him just his name. I will get him evicted and get a judgement on the owed rent. How ever, any ideas on how to get his info to hire a collections agentcy and get my money back?