Taking tenant to court - chances of success

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Taking tenant to court - chances of success

Investor · TN · Member since 2015 · 41 posts · 13 votes

In November of 2014 we had the wife of a husband-wife tenant pair inform our property manager she would be moving out. She included a letter signed by her husband stating he assumed all liability for the property. The following month rent never came. When the property manager followed up with the husband he said he had moved out and wouldn't be paying rent anymore (5 months left on lease @1250/month).

Our property manager filed an eviction notice with the court, gave the tenants required time to collect belonging before taking the unit back.

We were left with over $15k worth of damage and unpaid rent before the unit could be rented again. I compiled all paperwork in the case and hired a property lawyer to take the case to court and receive a judgement against the tenants. Because the tenant is active duty military it is a lengthy process leading up to the court date due to VA law requiring ample notification time through a Guardian Ad Litum.

The court date is set for July 13. If the tenant shows up a trial date is set. If he doesn't the judgment is in my favor on that date.

I'm concerned after I receive the judgment for the damages I still won't receive the money this has cost me, not to mention the addition of the legal fees. Although the judgement will be against both the husband and wife they are now separated with the husband paying child support (x2) and the wife a full time student.

Has anyone been in a similar situation with a favorable result? Any advice?

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Retired Landlord/Author · Commerce Township, MI · Member since 2012 · 1k+ posts · 1k+ votes

Go to court get the Judgment. Most people don't realize that a Judgement is good for several years. When it is time to expire, you can renew the Judgment. Therefore, one day, this judgment will haunt them, and you have a chance of collecting your money. You can also turn them over to a collection agency. I did and 11 years later received my Judgment in full. (Less the cost to the Collection Agency) Also damages can be written off at the end of the year if not paid. So it's not a total loss. But I have to admit, you sure did take a loss that's for sure!

Nancy Neville

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Matthew Paul
Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
11y
Judgements are good , garnish wages . You wont know the outcome unless you go to court .
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Account Closed
Retired Landlord/Author · Commerce Township, MI · Member since 2012 · 1k+ posts · 1k+ votes
11y
Go to court get the Judgment. Most people don't realize that a Judgement is good for several years. When it is time to expire, you can renew the Judgment. Therefore, one day, this judgment will haunt them, and you have a chance of collecting your money. You can also turn them over to a collection agency. I did and 11 years later received my Judgment in full. (Less the cost to the Collection Agency) Also damages can be written off at the end of the year if not paid. So it's not a total loss. But I have to admit, you sure did take a loss that's for sure!
Nancy Neville
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Seth M.
OP
Investor · TN · Member since 2015 · 41 posts · 13 votes
11y
Originally posted by @Account Closed:

Go to court get the Judgment. Most people don't realize that a Judgement is good for several years. When it is time to expire, you can renew the Judgment. Therefore, one day, this judgment will haunt them, and you have a chance of collecting your money. You can also turn them over to a collection agency. I did and 11 years later received my Judgment in full. (Less the cost to the Collection Agency) Also damages can be written off at the end of the year if not paid. So it's not a total loss. But I have to admit, you sure did take a loss that's for sure!
Nancy Neville
Good to hear Judgements can be renewed when necessary. It was a big loss. 11 years is a long time to wait, but much better than never recouping cost. I do expect a nice tax return this year!
What happens if a person with a judgement against them files for bankruptcy?
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Stephen Chittenden
Rental Property Investor · Gambrills, MD · Member since 2014 · 372 posts · 88 votes
11y
A positive is that you know where he works, so getting a garnishment order should be fairly straightforward.
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Roy N.Pro Member
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
11y
@Seth M.
Not sure if it would be the same in the U.S.A., but here if your tenant is active duty, you take the judgement to the military and they will garnish his wages.
1 Reply
Steve Combs
Investor · Cary, NC · Member since 2015 · 79 posts · 34 votes
11y
I would check with your attorney on what the garnishment laws are in your state. If you can't garnish wages or a bank account it will be tough to collect. But, it sounds like you have completed most of the process. What will it cost you to complete the process? If it is not that much more, you might as well complete the process. That way you might get something in return.
My question is where is your property manager in all of this? Shouldn't they have caught some of the damage before it got out of hand?
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Seth M.
OP
Investor · TN · Member since 2015 · 41 posts · 13 votes
11y
Originally posted by @Roy N.:

@Seth M.
Not sure if it would be the same in the U.S.A., but here if your tenant is active duty, you take the judgement to the military and they will garnish his wages.
Same deal here, according to my lawyer it is relatively easy to garnish military wages. My concern, the only tenant with income is responsible for child support on an already low wage. From his perspective bankruptcy would look appealing...I assume.
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Seth M.
OP
Investor · TN · Member since 2015 · 41 posts · 13 votes
11y
Originally posted by @Steve Combs:

I would check with your attorney on what the garnishment laws are in your state. If you can't garnish wages or a bank account it will be tough to collect. But, it sounds like you have completed most of the process. What will it cost you to complete the process? If it is not that much more, you might as well complete the process. That way you might get something in return.
My question is where is your property manager in all of this? Shouldn't they have caught some of the damage before it got out of hand?
Absolutely right, I'm closer to the end of the process than the beginning. At the very least the judgement will act as a warning for future landlords when screening the tenant.
The property manager mentioned the tenants weren't ideal, but was as surprised by the state of the condo as I was. In her words, it was "the worst she'd ever seen." This statement came after it was completely rehabbed and re-rented.
Some of the damage was from the tenants while living there (broken doors, frames, drywall) and some of the damage was due to what appeared to be cat(s) living in the unit unsupervised after the tenants moved out, along with food left throughout the unit with no power for weeks. Trash disposal was also a cost; they basically walked out the front door one day never to return. Almost all furniture, clothes, food, dishes were left behind. Most unsalvageable after a couple weeks with the cats.
It was a disaster to be sure...fortunately we hit rehab hard and it looked brand new and re-rented quickly following completion.
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Joel W.
Investor · Eastlake, OH · Member since 2015 · 174 posts · 85 votes
11y
Wow! Many people on here thank us military guys for our service, but things like this make me cringe. Some Active Duty members don't live with honor and put an extra burden on tax payers. From a ten year acitve duty sailor... sorry. Not how I want to be represented or represent our country. On a good note. ...

Your lawyer is right, it is very easy to garnish active duty wages.
1 Reply
Seth M.
OP
Investor · TN · Member since 2015 · 41 posts · 13 votes
11y
Originally posted by @Joel W.:

Wow! Many people on here thank us military guys for our service, but things like this make me cringe. Some Active Duty members don't live with honor and put an extra burden on tax payers. From a ten year acitve duty sailor... sorry. Not how I want to be represented or represent our country. On a good note. ...
Your lawyer is right, it is very easy to garnish active duty wages.
Joel, makes me cringe, too! I'm at ten years in myself. This was my first bad experience with a fellow military renter. Looks like I'll see firsthand how easy it is to garnish military wages.
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Joel W.
Investor · Eastlake, OH · Member since 2015 · 174 posts · 85 votes
11y
@seth M.

Yeah it is sad. The 80/20 rule applies in the miltiary also, except it is more like 95/5. 5 % of my sailors I wouldn't let come near my family or properties. The other 95% I'd lower my rental rate.
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Roy N.Pro Member
Rental Property Investor · Fredericton, New Brunswick · Member since 2013 · 7k+ posts · 4k+ votes
11y
Originally posted by @Seth M.:
Originally posted by @Roy N.:

@Seth M.
Not sure if it would be the same in the U.S.A., but here if your tenant is active duty, you take the judgement to the military and they will garnish his wages.
Same deal here, according to my lawyer it is relatively easy to garnish military wages. My concern, the only tenant with income is responsible for child support on an already low wage. From his perspective bankruptcy would look appealing...I assume.
Seth,
Are military members (enlisted and/or officers) entitled to declare bankruptcy in the U.S.A.? Back during my days in the navy, financial troubles was a ticket to loosing one's security clearance and bankruptcy could possibly mean a discharge.
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Seth M.
OP
Investor · TN · Member since 2015 · 41 posts · 13 votes
11y
Originally posted by @Roy N.:

Originally posted by @Seth M.:

Originally posted by @Roy N.:
@Seth M.
Not sure if it would be the same in the U.S.A., but here if your tenant is active duty, you take the judgement to the military and they will garnish his wages.
Same deal here, according to my lawyer it is relatively easy to garnish military wages. My concern, the only tenant with income is responsible for child support on an already low wage. From his perspective bankruptcy would look appealing...I assume.
Seth,
Are military members (enlisted and/or officers) entitled to declare bankruptcy in the U.S.A.? Back during my days in the navy, financial troubles was a ticket to loosing one's security clearance and bankruptcy could possibly mean a discharge.
You're right regarding loss of security clearance, but bankruptcy won't necessarily lead to a discharge, unless it's a secondary effect of illegal actions. Unfortunately, I don't get the feeling my former tenant is concerned about his security clearance...
A tip given to me by my lawyer - the Navy Marine Corps Relief Society can give low interest loans to active duty members to get out of debt in order to help them keep their security clearance eligibility.
I'll update this thread as the case progresses.
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Paul Choate
Attorney · Shawnee, OK · Member since 2013 · 350 posts · 230 votes
11y
@Roy N.I am a bankruptcy attorney in okc, Oklahoma. (Tinker AFB is next door) I have service members who have to file for bankruptcy to keep their security clearances. Post bankruptcy, you have no debt, generally the same assets and the same income. The pressure from debt is the problem. Just FYI.
1 Reply
Kevin Harrison
Investor · Woodbridge, VA · Member since 2015 · 476 posts · 197 votes
11y
I don't know if you have this information avaible. but if you know where/who he work for (as in his unit) you could bring this to his chain of command and typically they will make him pay his debts, for the rent at least. for the damages I don't think they would get involved without a judgment.
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Seth M.
OP
Investor · TN · Member since 2015 · 41 posts · 13 votes
11y
I'm reviving this old thread with an update. I have received a judgment for the full amount requested ($14,900). Great news, if I'm able to collect.
The new wrinkle to the story - my ex-tenant was recently disciplined and reduced in rate by his command, meaning he will be out of the Navy in 8 months due to High Year Tenure. The wage garnishment process takes at least 3-4 months to start, meaning I may collect ~$1-2k before he is on the street without a job.
If you were me, would you file the garnishment paperwork anyway, turn over to a collection company or contact his chain of command? The judgment includes both him and his wife. They are separated and she is currently a student.
I'm still trying to make up my mind how to move forward. The judgment is in VA and is 15 days old.
1 Reply
Matthew Kreitzer
Attorney · Winchester, VA · Member since 2015 · 726 posts · 387 votes
11y
Originally posted by @Seth M.:
I'm reviving this old thread with an update. I have received a judgment for the full amount requested ($14,900). Great news, if I'm able to collect.
The new wrinkle to the story - my ex-tenant was recently disciplined and reduced in rate by his command, meaning he will be out of the Navy in 8 months due to High Year Tenure. The wage garnishment process takes at least 3-4 months to start, meaning I may collect ~$1-2k before he is on the street without a job.
If you were me, would you file the garnishment paperwork anyway, turn over to a collection company or contact his chain of command? The judgment includes both him and his wife. They are separated and she is currently a student.
I'm still trying to make up my mind how to move forward. The judgment is in VA and is 15 days old.
VA Debt Collection attorney here. There is nothing forcing you to collection at the moment. If anything, it may be in your best interests to hold off on enforcing the judgement. You need to think about the psychology of the Debtor, and the likelihood they would file for Bankruptcy and null your judgment. Consult with a Debt Collection attorney soon. Most Real Estate companies have one for late due rents and such. They will be able to better help you understand the ins and outs of the garnishment process.
1 Reply
Chris Simmons
Real Estate Agent · Owasso, OK · Member since 2014 · 517 posts · 400 votes
11y
I deal with this all the time with my job. We always get a judgement, even when we are pretty sure we won't see a dime. Years down the road, someone want to buy or sell real estate, settle an estate or simply pops back up on radar with accounts we can garnish.
Suck it up, eat the cost and try to minimize it. In the next few years, you just might get an urgent request from them to resolve this judgement so they can do something.
At minimum, it's on their credit and it will help other landlords know to stay away. Think of it as paying it forward with a small chance of getting paid back.
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