Getting Unpaid Rent

Rental Property Investor · Everywhere · Member since 2020 · 9 posts · 5 votes

Looking to know how we can go about getting unpaid rent. Here is the situation:

Tent is going on 5 months of unpaid rent, this property out of state (in PA) and I have a property management team handling the situation. If he goes without paying and is evicted, is a lien automatically placed via the courts ruling to pay back money owed or do I have to pursue them separately via small claims court?

0 Reply

71 views

Most Popular Reply

Caleb Brown

Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes

I don't know PA laws but I don't think you will get the unpaid rent back. You can try but if they haven't paid rent they will probably not have the money nor is it worth your time. Why have they been in their 5 months without paying? Does the eviction process take that long their?

2 Reply

See this reply in the discussion

8 Replies

Jump to latestLatest

Sort by

Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes
3y
I don't know PA laws but I don't think you will get the unpaid rent back. You can try but if they haven't paid rent they will probably not have the money nor is it worth your time. Why have they been in their 5 months without paying? Does the eviction process take that long their?
2 Reply
Bjorn AhlbladPro Member
Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
3y
@Kenneth Bray Whatever you do set your expectations real low, and then lower them some more when it comes to getting any back rent. I have won court order awards but have yet to see a dime. So don't get your hopes up. Get the tenant out by eviction and have the unit rent ready for the next tenant.
0 Reply
Richard F.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
3y
Aloha,
To my knowledge, generally there are two processes...one for possession (only), the other a money judgment. Once you get the money judgment, an attorney or collection agency can attempt to enforce it by garnishing wages and other efforts. In reality, for most Tenants, you cannot get blood from a turnip. BUT, if they are just young and dumb, you should still get the money judgment, as they remain in effect for a number of years, and can be renewed repeatedly. At some point, if the deadbeats want to lower their interest rates, buy a nice car, or a home, they will need to pay off the collection items, and you could get a surprise in the mail (as long as you keep your contact info up to date with the Collection company or attorney that you used).
If, on the other hand, they are past their prime and don't appear to have any prospects, I would not spend the time or money for the money judgment or collection efforts. The eviction for possession will still be on their Public Records for quite a few years.
0 Reply
John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
3y
This is one of the risks we take as investors. You won’t get any money back most likely. All we can do is file for eviction right away when they fall behind and get them out asap. Blue states will take you much longer. That’s why I will never invest in tenant friendly states. It’ll crush you financially to finally get out non paying tenants.
0 Reply
Patricia Steiner
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
3y
As a landlord, you can report/file a rental reference on the credit bureau (Experian offers this service) - and I recommend you do. While your chances of getting paid are low, so will be the tenant's chances of getting that new phone, car, or next rental. You up your chances of repayment when you make it really tough for them to have any toys and decent rental. You can also assign it to a collection agency; many are fee based and several take a cut of what they collect. This will more than likely require you to get a judgement against the tenant for the unpaid rent.
And, not to rub salt in the wound but why 5 months?!!! Tenants who don't pay, don't stay - and the process should start as soon as they miss the first rent payment. Being out one month's rent is a whole lot less than five. Make sure your PM contract sets a standard for valuing your money by taking action as soon as it is required.
1 Reply
Adam Martin
Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
3y
Your post in reality should have been how do I get rid and replace a property management company who has not collected rent in 5 months. That was not the question though but as others have said the likelihood of collection is low but remember low is not impossible. The first objective should be to get them out and re-rented but after that I encourage you to file the suit on money due and send to collections. Sure you may never see it but really it is not that expensive and I have made worse gambles that never paid off. I really wouldn't expect money but I'm petty and at the least I'd get a sense of satisfaction that I had made their life just a bit harder. You also never know there are plenty of posts on here where landlords have collected but I can guarantee you they won't come knocking looking to make good on their debt without a judgement prompting them to do so. If nothing else at least you warned the next guy, it would have been nice if someone did that for you since I doubt this is this person's first rodeo.
1 Reply
Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
Quote from @Kenneth Bray:

Looking to know how we can go about getting unpaid rent. Here is the situation:
Tent is going on 5 months of unpaid rent, this property out of state (in PA) and I have a property management team handling the situation. If he goes without paying and is evicted, is a lien automatically placed via the courts ruling to pay back money owed or do I have to pursue them separately via small claims court?

5 months and you have not filed eviction, that is a poor property manager. File the eviction notice ASAP. Before spending a few grand on a lawsuit to collect the unpaid rent, I would first determine if its worth going after them. if this is a C rental then its not worth it as you probably will never collect compared to if its an A area.
7e investments53 Reviews
Website View Page
0 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Kenneth Bray:

The court hearing typically provides two documents: Writ of Restitution and a Judgment. The Writ of Restitution forces the tenant out and gives you control of your property. The Judgment states how much the tenant owes you.
The judgment doesn't really help you collect anything. I recommend you turn it over to a collection agency that will do the work for you. They can put it on the tenant's credit report and perhaps prevent the tenant from scamming someone else, buying a car, or whatever. If you are lucky, they'll collect some of the money owed.

The DIY Landlord Book4.7244 Reviews
Website View Page
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.