What if the damage is more than the security deposit?

[Tom R.]

Just a what if scenario. I'm trying to learn as much as I can before I have these problems.

What if the damage is more than the security deposit?

[Account Closed]

Well you bill them for the damages, (send them a bill to their last known address which is your rental unit), you deduct the damages from their security deposit.  (make sure you send them an itemized bill and it must be within 30 days or 35 days or whatever your state law says you must send them an Itemized statement). 

Foot Note:  The bill should show the security deposit deduction, showing the balance due that the security deposit didn't cover.

If they don't pay, send the balance owed to a Collection Agency (Find one in your city) and if they collect good.   If not you write off the amount that you couldn't collect as a write off (Expense Account).  You can also put a lien on their property, e.g, car, income tax refund, etc. 

I always had good luck with the Collection Agency.  One time they collected on a tenant of mine that moved out of state, they came back 11 years later, and they got her.  The collection agency took their commission and I got the rest.  (This agency was like COLUMBO.  They were and still are like a pit bull.  They never let go.  

Nancy Neville