Best way to recover lost funds after eviction?

Best way to recover lost funds after eviction?

Member since 2020 · 5 posts · 2 votes

Hi all, 

I started an eviction process in September using a lawyer and I finally got the inherited tenants out last week. I knew they would try to make the process as complicated as they could and take advantage of MA laws and that’s exactly what they did. At the end I got even more screwed than I thought and trying to see the best way to recoup some of the loss. 

Long story short, they stopped paying rent since I issued the eviction and in mediation I was issued a money judgment of approximately $4200 against them. They moved out but didn’t tell me anything and left all their old stuff behind. I had to use an execution to move their stuff out of the apartment and now just received a $2500 bill from the moving company to legally move their junk (literally) to the storage and 3 months storage fee. On top of all of this, I still have to pay the attorney for the eviction process and the constable’s fee. I’m a relative new property owner and this is the first time dealing with this very frustrating process so looking for some advice.

What would be the best way to try to recoup some of the expenses? 
Should I continue to use the attorney and will the process of trying to collect the money cost me more than it will be worth? 
They were supposed to leave the apartment in “broom swept” condition and didn’t. Can I sue them for the moving expenses? 

Would appreciate any and all advice on how to proceed. Thank you.

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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
3y

Sell their cra$ instead of moving it.  If they come back to get it, just tell them someone must have stolen it after they left, and before you got there, or...

don't tell them where you moved their cra$ to until they pay you the cost of moving it there...and only accept cash.

Seriously, one of the first things you find out as a landlord is it will cost you more to try to recover eviction cost losses than it's worth.  Just recover them on the next tenant...gradually.

Don't invest anymore in a State that favors to tenant to the point of landlord extinction.

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    3y

    Sell their cra$ instead of moving it.  If they come back to get it, just tell them someone must have stolen it after they left, and before you got there, or...

    don't tell them where you moved their cra$ to until they pay you the cost of moving it there...and only accept cash.

    Seriously, one of the first things you find out as a landlord is it will cost you more to try to recover eviction cost losses than it's worth.  Just recover them on the next tenant...gradually.

    Don't invest anymore in a State that favors to tenant to the point of landlord extinction.

  • Investor · Curtis, NE · Member since 2019 · 231 posts · 140 votes
    3y

    You have a very small chance of collecting anything. Unless you know where they work and are sure you can get a garnishment on a judgement I would just walk away. But if you are sure you can collect, knock yourself out. How much more time and effort do you want to commit to this?

  • Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y
    Aloha,

    Yes, evictions are very costly. Even worse, here, and I'm sure in other jurisdictions, we are only allowed by law to collect 1/4 of the legal fees from tenant. Proper screening is the most important thing that a LL/PM does, so work on your process.

    Having said that, since you did get the money judgment, definitely contact a long time collection agency. You almost certainly will see NOTHING any time soon, but you might get a surprise check in the mail several years down the road. Typically these judgments are good for seven years, then can be renewed. Depending on the tenant, if you think they are young enough to get past their bad habits, it is quite possible that someday they will want to buy a house, or maybe just get tired of the high cost of their credit for cars etc. and they will eventually start paying down the judgment. It doesn't happen often, but it does happen. Stay in contact with the collection agency yearly, keep them informed of changes to YOUR contact info, and let them do the legwork.
  • New to Real Estate · Fort Lauderdale, FL · Member since 2022 · 52 posts · 34 votes
    3y

    1. Follow up on the money judgment: If you were issued a money judgment of approximately $4200, you could try to collect that money from the former tenants. You can ask your attorney if they can assist you with the process of collecting the money, which may include garnishing wages or placing a lien on the tenant's property. However, keep in mind that there is no guarantee that you will be able to collect the money, especially if the tenants do not have any assets or income to garnish.

    2. Sue for moving expenses: You may be able to sue the former tenants for the moving expenses if they did not leave the apartment in "broom swept" condition as agreed upon. You should consult with your attorney to see if this is a viable option and to determine the best way to proceed with the lawsuit.

    3. Negotiate with the moving company: You could try to negotiate with the moving company to reduce the bill, especially if you feel that the charges are unreasonable. You could explain the situation and ask for a discount, or ask if they have any payment plans available.

    4. Consider future precautions: To avoid similar situations in the future, you may want to consider taking precautions such as screening tenants more carefully, having a clear and detailed lease agreement, and having a plan in place for handling nonpayment of rent or eviction.

      Additionally, if you don't want to go through all the stringent legal actions, you could just try Airbnb for a short amount of time to recover the lost funds, and then go back to renting to tenants. Just make sure you research the laws around your area to see if they allow Airbnb.

      I hope this helps! Keep us updated!

    1. Melanie ThomasBusiness Member
      Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 489 votes
      3y

      Sending to a collection company would be your best bet IMO. Do not expect your money quickly. At some point the debtor will need their credit and reach out for payment arrangements options. Cost of doing business sometimes. If you continue with your attorney trying to collect, your fees will continue to pile up. I would stop the bleeding asap.

      Good luck and happy investing! 

      RentWerx Property Management4.73300 Reviews
    2. Member since 2022 · 1k+ posts · 1k+ votes
      3y
      Quote from @Richard F.:
      Aloha,

       we are only allowed by law to collect 1/4 of the legal fees from tenant.

      The insanity just doesn't stop.  Sorry to hear this.
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