Memphis Rentals: Eviction and now Bankruptcy

[Rebecca K.]

A tenant is almost $4,000 late with rent.Through my property manager, we were awarded judgement and possession after an eviction proceeding. Since then, the tenant has filed for bankruptcy, which has ceased all action to gain possession and evict through general session court. Now my property management is filing a Motion to Lift Stay Order in Bankruptcy court. 

[Randy E.]

Originally posted by @James Martin:

From what you’ve posted you should be fine with getting them out in a timely matter. It seems you have a knowledgeable management company working on your behalf. It’s unfortunate that this has happened to you, but nothing to panic about. It’s all part of investing in real estate. I’m sure your have great news for us soon!

 Hi James,

I can't be as quick as you to say the OP has a "knowledgeable management company" working on her behalf, or that the PM got the matter handled in a "timely manner".  I'm guessing a little here, but I'd assume that as an out-of-state investor, she bought in TN because of cheaper houses and better cashflow.  Further guessing, based on other posts at BP from landlords in the Memphis area regarding such buyers and the properties marketed to them, would have me assume the rent for her property is probably $700-$900/month.  

If the tenants are $4000 behind in rent, that means they are 4 or 5 months behind in rent.  For a PM to allow a tenant to get so far behind before filing and getting a judgement  is not my definition of "knowledgeable" or "timely."  I'd go further and say it's a sign of incompetence.  

Yes, missed rent payments, evictions, and unexpected events are all part of being a landlord.  However, waiting that long to initiate eviction is part of being incompetent.  If the PM did indeed wait that long, my first order of business after the tenant was actually evicted would be to fire that PM company and hire a new one.