Suing an ex tenant in small claims court
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Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
2y@Alex Tang, YES!
I would absolutely sue them in small claims court. Collecting on judgements is VERY VERY hard on average BUT in your case you have a MUCH higher than average chance to collect your money.
Once a judgement is unpaid, you generally have to file it with the county and it becomes a lien on any property they own in that county. You can then work to execute based on that lien to do things like garnish wages etc. That may or may not work as depending on earnings and the family size etc many are not collectible.
However, you have a second avenue to collect. The house they bought! Your lien will attach to their house. As a primary residence in my state I cannot foreclose on it with a judgement lien, but they won't be able to refinance or sell without paying off the lien! Plus in my state I can charge 6% interest on the money. So, even if it takes 20 years, I will be fairly compensated.
8 Replies
- Specialist · LA & Ventura · Member since 2023 · 119 posts · 60 votes2y
Quote from @Alex Tang:
Hello,
i am an out of state landlord with a 3bd 2ba SFH outside of Atlanta and am looking for some advice in whether to take an ex-tenant to small claims court. This person and his partner broke the lease early as they bought a home. The damages plus cleaning fees could exceed $10k. This person is a pilot for Delta Airlines but never left a forwarding address. I've never taken anyone to small claims court so any advice on how to proceed or whether it's worth it at all would be greatly appreciated. Thanks
$10k is the max small claims amount, at least in CA. It costs $30-75 to file, and then $50-150 to get them served by a competent party. It is well worth it for you if the lease was clearly broken by the tenant(s), and you have nothing to hide. Just print 3x copies of everything, show up to court after you serve them, and you will win the judgement. Now the fun just began, you will have trouble collecting or getting them to pay the judgement, but good news for you is you know they have a job, and with that judgement you can garnish their wages (take from their employment income until you get your judgement satisfied). It's just another piece of paper to file with the courts. Worst case is you wait until they die to satisfy your judgement from their kids inheritance (interest accrues quickly, this would be better than putting the $10k in the S&P 500).
Best way to learn is by doing. If you've got the time, spend the $100-200 bucks and file it, will give you more confidence later down the line to straighten out the scumbags - Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes2y
@Alex Tang, YES!
I would absolutely sue them in small claims court. Collecting on judgements is VERY VERY hard on average BUT in your case you have a MUCH higher than average chance to collect your money.
Once a judgement is unpaid, you generally have to file it with the county and it becomes a lien on any property they own in that county. You can then work to execute based on that lien to do things like garnish wages etc. That may or may not work as depending on earnings and the family size etc many are not collectible.
However, you have a second avenue to collect. The house they bought! Your lien will attach to their house. As a primary residence in my state I cannot foreclose on it with a judgement lien, but they won't be able to refinance or sell without paying off the lien! Plus in my state I can charge 6% interest on the money. So, even if it takes 20 years, I will be fairly compensated.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes2y
Quote from @Alex Tang:
Hello,
i am an out of state landlord with a 3bd 2ba SFH outside of Atlanta and am looking for some advice in whether to take an ex-tenant to small claims court. This person and his partner broke the lease early as they bought a home. The damages plus cleaning fees could exceed $10k. This person is a pilot for Delta Airlines but never left a forwarding address. I've never taken anyone to small claims court so any advice on how to proceed or whether it's worth it at all would be greatly appreciated. Thanks
Two options, get an attorney to handle this (in many instances attorney fees are also recoverable). The other option is 1099 them this amount whcih means they will have to pay taxes on that. you get nothing but another avenue.
I did hear you can 1099 them and continue to pursue, and if you get the $ then you file a revised 1099.
7e investments53 Reviews - Member since 2018 · 27 posts · 4 votes2y
Quote from @Chris Seveney:
Quote from @Alex Tang:
Hello,
i am an out of state landlord with a 3bd 2ba SFH outside of Atlanta and am looking for some advice in whether to take an ex-tenant to small claims court. This person and his partner broke the lease early as they bought a home. The damages plus cleaning fees could exceed $10k. This person is a pilot for Delta Airlines but never left a forwarding address. I've never taken anyone to small claims court so any advice on how to proceed or whether it's worth it at all would be greatly appreciated. Thanks
Two options, get an attorney to handle this (in many instances attorney fees are also recoverable). The other option is 1099 them this amount whcih means they will have to pay taxes on that. you get nothing but another avenue.
I did hear you can 1099 them and continue to pursue, and if you get the $ then you file a revised 1099.
I've talked to an attorney who 1) thought there was a reasonable chance the legal costs would not be recouped even if judgement is in my favor 2) the legal costs would most likely exceed the damages.
how do you 1099 an ex tenant this expense?
- Member since 2019 · 104 posts · 72 votes2yIf you take them to small claims, you will have minimal to no legal expenses (other than the filing and service fees), at least in Ohio. I suspect GA would be similar, but check the local laws.
Quote from @Alex Tang:
Quote from @Chris Seveney:
Quote from @Alex Tang:
Hello,
i am an out of state landlord with a 3bd 2ba SFH outside of Atlanta and am looking for some advice in whether to take an ex-tenant to small claims court. This person and his partner broke the lease early as they bought a home. The damages plus cleaning fees could exceed $10k. This person is a pilot for Delta Airlines but never left a forwarding address. I've never taken anyone to small claims court so any advice on how to proceed or whether it's worth it at all would be greatly appreciated. Thanks
Two options, get an attorney to handle this (in many instances attorney fees are also recoverable). The other option is 1099 them this amount whcih means they will have to pay taxes on that. you get nothing but another avenue.
I did hear you can 1099 them and continue to pursue, and if you get the $ then you file a revised 1099.
I've talked to an attorney who 1) thought there was a reasonable chance the legal costs would not be recouped even if judgement is in my favor 2) the legal costs would most likely exceed the damages.
how do you 1099 an ex tenant this expense?
- Investor · Winnipeg, Manitoba · Member since 2013 · 303 posts · 321 votes2y
check out which county is your property at, then find the magistrate court for small claims under $15K in GA. Filing is $60 and can served by Marshall's department for $50 each party. Statue of limitation; I believed is 4 years. If you are out of state or county, much easier to handle by a lawyer. Good luck.
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