Is it Worth It?

Question

Hello all,

I have a 2 BR condo in SC that is currently being shared with my son and another college kid. I have a lease with the kids mother, who lives in Maine, until the end of December, to include rent and 1/2 of the Gas/elect bill. The kid has decided that a golf career isn't for him, so he is leaving the school & the condo.

The family has not called or written me to inform me of this, I found out via my son yesterday, that he was leaving next week and doesn't plan to pay the rest of the lease. I have tried via email and phone to reach the family with no return calls. I have a feeling they do not intend to uphold the lease.

My question is, is it worth pursing legally? The balance of the lease would be $4000 + approx $400 for his portion of gas/elect., so $4400.

What is entailed with pursing a tenant (out of state) in time and approx. dollar amounts with legal fees?

Jeff Takle · Answer

tracy, Two things: file in small claims court and get a debt collection agency to chase them down. It normally costs less than $50 to file a claim in small claims court. The maximum amounts allowed in small claims court may vary, but let's say it's about $2,000. If you have a written lease and document things like the phone call from your son, the letter to the parents, etc. then you should have enough of a case to get it into small claims court. I would propose doing the following in this order: 1. Start advertising, preparing the unit, and screening tenants. Your #1 priority is getting it rented. Sure the old tenant is liable for the rent while it's vacant but that isn't guaranteed money like cash from a new renter. 2. Document timelines when you start advertising, clean up costs, ad costs, where you advertised (save copies), rental applications, miles driven to show the unit, phone calls, letters EVERYTHING. Without documentation you have nothing in court. 3. Send a letter with delivery confirmation. Better yet, pay the $12-$24 fee to have a constable (local sherrif's office) deliver a letter to the parents stating that the son broke the lease--if parents were co-signers then notify them in the letter that they are legally liable for paying the rent until it is re-rented. Specifically state what you are doing right now to get it re-rented and explain that you are moving as quickly as possible to mitigate the costs and damage to all parties involved. Close by informing them if you are not paid within XX days (use 30 if you can), you will file two small claims court cases -- one against the son and one against the parents. 4. Find the small claims court in the county of your rental and call them. They'll walk you through the paperwork and any process required. You don't need a lawyer for small claims court. Just good records and a level head. The court personnel are normally very helpful. 5. The deal for any plea bargain -- a deal where you drop the claim against them -- is NOT for the $2,000 small claims court limit. EITHER they pay the full amount due (what you think may be $4,400), OR you will win a judgment against each of them that goes on their credit reports and records. Plus, but filing two claims, you could potentially get awarded $2,000 from each party, for $4,000 total. That they take responsibility for their actions is not negotiable. Without records or a written lease, you probably have little chance of success. With them, you can pursue this in small claims court. DEBT COLLECTION. Google it. You'll find 100 companies. Find one that doesn't charge a fee up front. Better yet find one that charges any collection fee to the tenant (rarer, but they exist). If the tenant is more than 30 days late paying their share, sick em on the tenant. They file delinquencies with all three credit bureaus monthly, damaging the tenant's credit which they should. They also have creative ways (not Sopranno's "creative" but financially "creative") of helping the tenants pay off the debt too. Pursue this concurrent to the small claims court process to exert maximum pressure. If you want specific recommendations, just PM (private msg) me. Good luck! -Make small claims court your friend. -Jeff :clap:

Tracy Percival · Answer

WOW, thanks Jeff & Mike for the time you guys put in to my post!!! I appreciate your advice and will follow what you said Jeff. The lease was signed by the mother, not the son, so she is the only one liable. I never would have thought of half of those things you suggested. This is why I love this site!!! THANK YOU!!!

Tracy Percival · Answer

Thanks for the input Mike, I appreciate it!

Michael Rossi · Answer

Tracy, I don't know the answer regarding the cost of pursuing an out-of-state legal action. For $4,400, it could be worth the trouble. However, in most states, you are required to try to mitigate the damages by finding another tenant and you will only be able to recover for the actual loss. If you find another tenant in a month, then you would only be able to recover for the lost month. Mike