Past Rent Collection

[Sonu Sharma]

Hi, I had a tenant at a property who I had acquired with the property about 2 yrs ago. The tenants were living (for 8 yrs when I bought it) in the property with a month-to-month lease when I purchased it but had no deposit with the previous owner. I was able to convert them from a month-to-month lease to a year long lease but did not collect a deposit, which was a big mistake. Learnt a big lesson !!

They had a lease until June 30th, 2018. However they vacated around June 2nd without giving any notice and wouldnt pay their rent for June.

When I contacted my property management company, they wrote me back this -

“Since the tenant has already vacated the property, the next step we can take is sending the tenant to collections, which would be a 3rd party collection agency. The collection agency would continue to try and collect the funds, and once collected, they would keep 50% of what is collected from the tenant. Another option would be for you to take the tenant to small claims court to collect the rent that is owed to you.”

With these two options and not having the deposit, what would you suggest I do ?? Any other possibilities ?

Thank you for yiur help.

[Mark H.]

If it doesn't cost anything up front, I'd let collections handle it. If they manage to collect, it's 50% you didn't have before.