[Advice] Allowed rent deferment due to COVID, tenants moved out

[AJ Pryor]

We acquired a 4BR SFH in 2019 used as student housing. There were existing tenants and a lease in place - the lease had some issues (such as being rented to individuals instead of as one amount and with no parental guarantor tied to the agreement). For one tenant, the mother typically paid the rent. When COVID hit, she contacted us indicating financial hardships, at which point we agreed to allow for a rent deferral whereby we would forgive all late fees provided that the amount was paid in full by the end of the lease, which was July 15th. We conducted a move out inspection the first week of July, and the tenants vacated on the 15th. I had contacted the tenant regarding the rent that was unpaid and have received no response, and they are not returning calls. The total amount of past-due rent is approximately $2k.

What reasonable actions, if any, can be taken here? The amount is in the range where a small claims suit may not make sense but enough to hurt, plus I gather the courts are tending to side with tenants on these matters if they are open at all. It's frustrating because this was a middle-ground arrangement intended to be empathetic with the plight of the person, but I have mortgages to pay, etc. Is this a lesson to be learned that people will take you for a fool, and I should have engaged eviction proceedings immediately? Hoping to get some advice and learn how to handle better now and in the future.

[Nathan Gesner]

If the tenant owes more than $500, I would seriously consider taking it to Small Claims and seeking a judgment. Then turn it over to a collection agency and forget it because you're unlikely to get paid. It costs me $140 to file in Small Claims, plus about an hour to prep the documents and file, then an hour in court. For $2,000 it's definitely worth it.

However, I usually skip court and just file with collections immediately. I receive money from one out of every 20 claims.