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Updated about 1 month ago, 11/16/2024

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Marc Chale
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Tenant Ready to Settle Debt Following Eviction

Marc Chale
Posted

The tenant suddenly stopped paying rent, claimed 'banking glitch' and squatted for 6 months while we worked through the evictions process. The court ordered the tenant to pay back-owed rent plus interest. 2 years passed, and the tenant reached back asking to "clear up the balance." I'd appreciate advice on our next steps. In particular:

(1) Should I hire a law firm or collection agency to facilitate the transaction? What's a reasonable fee?

(2) Should we expect to settle for the full amount of the court ordered debt plus court ordered interest? Our counsel previously advised we are legally entitled to a greater amount including all lost rent until the home was re-signed, cost of lock-out, cost to clean up house, physical damage, ect.

For context, this is a solid house in a decent neighborhood and we never had prior issues with the tenant. 

Thanks in advance!

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Chris Seveney
Lender
Pro Member
  • Investor
  • Virginia
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Chris Seveney
Lender
Pro Member
  • Investor
  • Virginia
ModeratorReplied

@Marc Chale

If they want to clear it up- why get a third party collector - compute what they owe and send it to them. Then say you can mail a. Check to X and I would even tell them you would send them a prepaid envelope usps priority mail

  • Chris Seveney
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7e investments
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Theresa Harris
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#2 General Landlording & Rental Properties Contributor
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Theresa Harris
Pro Member
#2 General Landlording & Rental Properties Contributor
Replied

I agree with Chris, why get a third party involved.  Tell them what the courts decided on.  If they can't do a money transfer directly to your bank, have them send a certified cheque using registered mail and signature required (they could send it to your work if you don't want to use your home address).  Most of the time after an eviction, you are lucky to see any of the money that is owed.

  • Theresa Harris
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