Tenant broke lease how do list it on there rental history
San Antonio, TX · Member since 2017 · 60 posts · 13 votes
Tenant broke lease how do list it on there rental history
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Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
3yI really don't think there is a database for bad tenants outside of the credit bureau. If they left owing money consider suing them in small claims court to collect a judgement. You are unlikely to get paid but that doesn't mean it is impossible and for the cost I'd do it. My first priority though would be to get it rent ready and focus on current and future profits. After you win your case google landlord collection agencies. Even if they don't collect the name of the agencies alone would make it hard to rent in the future and who knows, they may need to clear their credit for a job or to buy a home and you may see some money. There are going to be a lot of people telling you to get over it and it isn't worth the effort but if we all followed through we would all have more warnings and avoid bad tenants plus maybe people would think twice if they knew there was a high likelihood of consequences. Although I would know deep down it was probably a waste of money and time there is a part of me that likes a good mix of justice and spite as well of the unknown of possibly seeing some money owed.
8 Replies
- Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes3y
I really don't think there is a database for bad tenants outside of the credit bureau. If they left owing money consider suing them in small claims court to collect a judgement. You are unlikely to get paid but that doesn't mean it is impossible and for the cost I'd do it. My first priority though would be to get it rent ready and focus on current and future profits. After you win your case google landlord collection agencies. Even if they don't collect the name of the agencies alone would make it hard to rent in the future and who knows, they may need to clear their credit for a job or to buy a home and you may see some money. There are going to be a lot of people telling you to get over it and it isn't worth the effort but if we all followed through we would all have more warnings and avoid bad tenants plus maybe people would think twice if they knew there was a high likelihood of consequences. Although I would know deep down it was probably a waste of money and time there is a part of me that likes a good mix of justice and spite as well of the unknown of possibly seeing some money owed.
- San Antonio, TX · Member since 2017 · 60 posts · 13 votes3y
Thanks for the reply. Curious how apartment complexes get it on your renter history or credit report.
Quote from @Adam Martin:
I really don't think there is a database for bad tenants outside of the credit bureau. If they left owing money consider suing them in small claims court to collect a judgement. You are unlikely to get paid but that doesn't mean it is impossible and for the cost I'd do it. My first priority though would be to get it rent ready and focus on current and future profits. After you win your case google landlord collection agencies. Even if they don't collect the name of the agencies alone would make it hard to rent in the future and who knows, they may need to clear their credit for a job or to buy a home and you may see some money. There are going to be a lot of people telling you to get over it and it isn't worth the effort but if we all followed through we would all have more warnings and avoid bad tenants plus maybe people would think twice if they knew there was a high likelihood of consequences. Although I would know deep down it was probably a waste of money and time there is a part of me that likes a good mix of justice and spite as well of the unknown of possibly seeing some money owed.
This is like the art of war... pick and choose your battles... The goal is to win the war, right?
You are constrained, we all are... we all only have so much time and energy. Why waste your effort fighting backwards? If you lost that one tenant battle, and knowing the goal is to win the financial freedom war... then, let's charge forward! lol
How do you prevent this from happening again? And don't say, "better screening" I'm so tired of everyone blaming screening instead of taking REAL responsibility.
Reactive actions (i.e. reporting bad tenants) is like treating the symptoms instead of finding a cure.
I'd like to know more details how and why this happened?...
Who was doing the management? What type of property are we talking about? Rent amount? Location? Tenant info? etc. etc.
...Get to the root cause and be proactive, e.g. implementing REAL preventative actions. This is a valuable learning lesson for you. Dissect it!
The time and effort you put into truly learning and preventing it will be 3x better for YOU than trying to punish the tenants, they're sunk cost lost cause—forget em!
- Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes3y
@Rene G. is 100% right here.
We manage a predominantly C class portfolio in Chicago, and we have units that are left in poor condition regularly. Many legacy tenants will stiff us on rent on the way out the door as well. The collection process isn't simple or fair for landlords in these cases, but we will report them through our software and let a collection agency deal with it.
In terms of screening, this is where people are going to have to start digging in deeper. Bigger Pockets has been around for a while, and the 6XX credit score, 3X rent metric isn't enough anymore. You have to really dig in to see if stories make sense. Rental fraud is rampant, and using common sense is important.
- 3yAlan AsriantsBusiness MemberReal Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
Quote from @Rene G.:
This is like the art of war... pick and choose your battles... The goal is to win the war, right?
You are constrained, we all are... we all only have so much time and energy. Why waste your effort fighting backwards? If you lost that one tenant battle, and knowing the goal is to win the financial freedom war... then, let's charge forward! lol
How do you prevent this from happening again? And don't say, "better screening" I'm so tired of everyone blaming screening instead of taking REAL responsibility.
Reactive actions (i.e. reporting bad tenants) is like treating the symptoms instead of finding a cure.
I'd like to know more details how and why this happened?...
Who was doing the management? What type of property are we talking about? Rent amount? Location? Tenant info? etc. etc.
...Get to the root cause and be proactive, e.g. implementing REAL preventative actions. This is a valuable learning lesson for you. Dissect it!
The time and effort you put into truly learning and preventing it will be 3x better for YOU than trying to punish the tenants, they're sunk cost lost cause—forget em!
Love this answer!
Winning this tenant battle is just not worth it. In poker, sometimes the best move is to fold a really good hand
They are not worth your time. Let them go. Be thankful they are no longer your problem
Like Rene said, find out what went wrong and what you can do to get a better tenant.
Remember there are 3 things that affect real estate:
1. Location
2. Condition
3. Price
You can always change the last two.
Also, doing improvements doesnt just get you more rent, it also gets you higher quality candidates. Just something to think about
Alan Asriants - New Century Real Estate 592 Reviews - San Antonio, TX · Member since 2017 · 60 posts · 13 votes3yThanks what software are you using to report to the collection agencies?
Quote from @John Warren:
@Rene G. is 100% right here.
We manage a predominantly C class portfolio in Chicago, and we have units that are left in poor condition regularly. Many legacy tenants will stiff us on rent on the way out the door as well. The collection process isn't simple or fair for landlords in these cases, but we will report them through our software and let a collection agency deal with it.
In terms of screening, this is where people are going to have to start digging in deeper. Bigger Pockets has been around for a while, and the 6XX credit score, 3X rent metric isn't enough anymore. You have to really dig in to see if stories make sense. Rental fraud is rampant, and using common sense is important.
- San Antonio, TX · Member since 2017 · 60 posts · 13 votes3y
Thanks for the replies. I get the moving forward approach but I think it’s in my best interest to report it. Unless it’s some arduous task or costs 100s of dollars I’m not sure why you wouldn’t. I’m not concerned with getting the money back. It’s the principal of the matter. Thanks
- Member since 2019 · 23 posts · 19 votes3y
You can take them to small claims court. It takes time to learn the process and time to collect. How much is your time worth?
When you win a judgment you can collect on it by garnishing wages, repossessing vehicles, amongst other things. You will need to know certain things like their social security number and bank account number. You will need to know their employment information so that the garnishment is taken out of their pay checks.
You can file the judgment on their credit by sending the judgment documents to the credit bureaus. This can really mess them up and stays on it for years. If the former tenant pays, you can remove the judgment. This can be a bargaining tool for getting your funds.
Check into your states allowed interest rate on judgments. The last time I did this, the interest rate wasn't even 3%. There was no incentive for the former tenant to pay.
The courts may throw your judgment out after a certain time period. You may have to show that you are taking active steps to collect. You need to stay on top of this.
When it gets to this point, you may receive letters from companies offering you pennies on the dollar to take over the judgment.
So landlords - be sure to get the social security numbers from all adults living in the property.
Make sure you have the current employment information. I make my clients fill out a form annually that updates this information.
Make sure all adults - even children - who have turned 18, sign the lease.
Be sure to get their bank info. The biggest reason you need this is for collections. Even if the tenants are paying in cash, you need this information just in case.
Best wishes.
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