Rent Collection Agency

[Craig S.]

Hi Guys,

I wanted the advice of some other landlords on collecting fees/damages from deadbeat tenants that you have kicked out?

I recently served a 3-day move-out notice to a tenant, luckily they left and I didn't need to file for the formal eviction. However the tenant caused damage to the premises, and the tenant still had 4 months left on the lease term. The total 'damages' came to about $2,500 and the 4 months 'lost' rent adds up to $2,840 ($710 per month) for a total of about $5,340.

I have several ideas below (and maybe there are better recommendations):

Option 1) Have my attorney file an action in the general civil division of the municipal court and go after the full amount of money. However, I assume the judge wouldn't allow me to collect 4 full months of lost rent, as I am sure they would expect me to re-rent the unit much faster (in maybe 1-2 months).

Option 2) Reduce the amount to $3,000 or less so I can file suit in Small Claims court myself and hopefully win a judgement.

Option 3) If I were to win a judgement (however I go about that), I could attempt a wage garnishment.

Option 4) I could forego all of the above, cut my losses, and turn this over to a collections agency who will charge me 50% on a contingency basis if they are successful in collecting the funds. (The collection agency can also get a wage garnishment, but I am not sure if I need a judgement for this?)

Option 5) Or a combination of the above options.

One one hand, I don't want to spend any more money on this tenant, so I am thinking of just cutting my losses and turning this over to the collections agency to [hopefully] collect some/all of the balance and not waste any more of my money or time.

On the other hand, I am confident I would win in a judgement (either having my attorney file, or by myself in small claims) so am wondering if this would be worth the cost to get a judgement and then attempt a wage garnishment or if not, at least I would have an official judgement that would strengthen my position.

What are your thoughts and what has seemed to work best for other landlords?

[Michelle B.]

Craig S.

I recently went thru a very similar situation, except I had to follow through with an actual eviction. I received a judgment for a couple thousand dollars. One of the tenants had long-term employment with a very large, local hospital network.

Given the long-tenured employment we proceeded with wage garnishment. It cost $100 (which gets tacked on to the judgment) and we are now getting regular payments.

I see many landlords immediately reply with - move on and cut your losses. In some cases that makes the most sense. But not in every case....you just need to look at the entire scenario. If there is a good chance you can collect the judgment then do it. If not, don't waste your time and just move on.

Good luck!