Best strategy for collected damages & unpaid rent/utilities?

Question

Hey all,

Have a problem tenant who caused ~$2000 in damages and some unpaid utilities... let her dog soil the carpet and refused to pay water bill last few months.

We have her security deposit, but it only covers ~1/3 of cost of repairs.

Question:

• What is the most cost effective means of collecting funds owed? 
• What is the most cost effective means of reporting this on her credit report while abiding by current regulations?

I don't want to drop another $250-$500 in legal expenses when I probably won't collect funds owed anyway, but curious what techniques the experienced landlords have done when this has happened to them.

Account Closed · Answer

There is some good news for you.  Once you receive a Judgment, you can turn it over to a collection agency.  Do a search in your area.  I have a collection agency that collected for me after eleven years went by.  The tenant moved back to Michigan, my collection agency found them, and I got every penny, less their profit for finding them.

You can garnish their wages.  But a lien on their properties, but a good collection agency will do that for you.

Find a "Hound Dog" Collection Agency.  And..what you don't collect you can write off, because those expenses and loss of income are expenses which you want to make sure you list when filing for taxes.

Nancy Neville

Dan Perrott · Answer

Small claims court is probably your best route.  You may be able to garnish wages to get the money over time.  Key is to know where the tenant is now and where they work.

You need to talk to your lawyer.  Good luck.