Tenant owes us 3700$ with intention to file for bankruptcy.
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Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
10yYou will need to file a small claims suit in the jurisdiction of your property. The cost should be +-$150. You will need to provide an address for him so he can be served
Once you obtain a judgement in small claims, your best bet is to file an Abstract of Judgement in the county the property is located. The Abstract can be obtained from the court you received the Judgement for $5 or so
46 Replies
- Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes10y
You will need to file a small claims suit in the jurisdiction of your property. The cost should be +-$150. You will need to provide an address for him so he can be served
Once you obtain a judgement in small claims, your best bet is to file an Abstract of Judgement in the county the property is located. The Abstract can be obtained from the court you received the Judgement for $5 or so
- San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes10y
@Edita D. @Greg H. I agree with. First get your judgment in small claims court. Then, you can file a lien against his property and his vehicle and garnish his wages. Do it quick before he files. Then he can't sell the other property until he pays the lien against the property he owes to you.
That's how I understand it, anyway.
- Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes10y
@Account Closed
It is very inexpensive to go to small claims court. No lawyers involved. Since he owns other property you have a much better chance of collecting . Otherwise actually collecting on a judgment in Texas is very difficult.
I am actually in the Lubbock area for a couple days as I do some deals up this way. Feel free to reach out if I can help
- 10yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Greg H. my experience with this in Oregon... is that when they file bankruptcy you will get a letter from the bank ruptcy trustee instructing you to return the last 12 months of garnishments .. LOL.. talk about insult to injury... I just don't chase these anymore small dollars not worth the time or effort.
- Attorney · Winchester, VA · Member since 2015 · 726 posts · 387 votes10y
Originally posted by @Jay Hinrichs:
@Greg H. my experience with this in Oregon... is that when they file bankruptcy you will get a letter from the bank ruptcy trustee instructing you to return the last 12 months of garnishments .. LOL.. talk about insult to injury... I just don't chase these anymore small dollars not worth the time or effort.
If that is what your Trustee is doing, they are doing it wrong. There is only a 90 day pre-filing preference window in the Bankruptcy Code, not twelve months.
My recommendation to the original poster is to work with a collections firm to protect your interest. Mr. Greg has given you some fantastic basic information, but I would not recommend pursuing this alone.
- 10yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Matthew Kreitzer I stand corrected counselor... what ever we had to pay back it was about what we were owed so I just figured a years worth.. but either way it pissed me off.. since we had to go to all this effort.. ( I really disliked this tenant and wanted to prove a point LOL) which as you know in the law proving points is usually a fools errand...
- Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes10y
While I understand as a lawyer recommending a lawyer. However in a Texas landlord -tenant dispute involving less than $10000 in damages it makes no sense to pursue with any other avenue than through the Justice of the Peace(Small Claims) Court for the following reasons :
-Costs- No lawyers allowed and the cost including the Abstract in less than $200. The difficulty is the must be located to be served. Personally, I would never consider pursuing with any other avenue. Why would a landlord in Texas spend several thousand $$$ in legal fees to get a judgment for several thousand dollars which will most likely never be collected?
-Collection- The chances of collecting a judgment in Texas are virtually nil . The tenant would have to have exempt property that frankly I would guess 1% have . The OP is in a unique position in that the tenant has some potentially exempt property
What would the court do if you said no ? In 25+ years I have collected exactly 1 judgment and that was my first . I was still in the Army at Ft Hood in Killeen and a fellow soldier skipped out on me. He neglected to consider that he used the military deposit waiver program so he had to have a signed form from me to clear post. I somewhat enjoyed that meeting and the $500 or so was a lot of money to me at the time !
- 10yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Greg H. it was not the court it was the bankruptcy trustee... we sent them the money and I know it was 2 to 3k.. so just a classic waste of our time and effort.. I think in the land lording business you just have to assume your going to have bad debt and write it off.. and not fret over these small dollars. If a couple grand is going to get you all up set or hurt your lifestyle then I personally believe landlording is not something you should be doing at all...
- Attorney · Winchester, VA · Member since 2015 · 726 posts · 387 votes10y
Originally posted by :
While I understand as a lawyer recommending a lawyer. However in a Texas landlord -tenant dispute involving less than $10000 in damages it makes no sense to pursue with any other avenue than through the Justice of the Peace(Small Claims) Court for the following reasons :
-Costs- No lawyers allowed and the cost including the Abstract in less than $200. The difficulty is the must be located to be served. Personally, I would never consider pursuing with any other avenue. Why would a landlord in Texas spend several thousand $$$ in legal fees to get a judgment for several thousand dollars which will most likely never be collected?
-Collection- The chances of collecting a judgment in Texas are virtually nil . The tenant would have to have exempt property that frankly I would guess 1% have . The OP is in a unique position in that the tenant has some potentially exempt property
I disagree with a few of your contentions. The first is cost; the vast majority of contracts should allow for fee shifting provisions as part of obtaining judgment. If a lease doesn't have fee shifting and cost shifting provisions, you should probably have an attorney properly draft your lease agreements going forward.
That said, if you are relying on attorneys who are charging several thousand dollars for a simple unlawful detainer/conversion case, you are using the wrong attorney. The going market rate that I am aware of is less than a thousand dollars for the average case, and many attorneys are willing to take the case on a contingency basis so long as they are able to collect money as part of the collections.
The typical business model for a collections firm is to take a percentile of any monies collected as part of the proceedings, not to take an hourly or flat fee for the underlying case. Attorneys are able to do this because you are able to ask for post-judgment or pre judgment interest in your proceedings, which pay for the costs of the attorney most likely.
I would also disagree as to the chances for success at collections. Just because someone threatens bankruptcy doesn't mean they will. As a long time debt collection attorney, only a third of the people who threaten bankruptcy actually do once they find out what it means for them.
No, I think this individual should, at the least, sit down for a free consultation with a *debt collection attorney* in their local area to determine costs prior to trying to pursue this alone.
DISCLAIMER: Do not rely on any of the information presented above when going before a court. Every state is unique, and you should never listen to anyone other than a licensed attorney in your own jurisdiction.
- Member since 2016 · 13k+ posts · 12k+ votes10y
I personally do not see being a landlord as some special business. When a store is stiffed for a couple of hundred dollars the customer will get a letter from their lawyer and they will most assuredly take that customer to small claims court if they do not pay. The reason why most landlords advise against, and do not peruse tenants owing money, is because they are not operating a business. They consider being a landlord as a hobby. Lose some money who cares, not worth chasing crooks cause it's only extra money I can live without.
I operate a business and when a customer stiffs me I take them to court just like every other business does. It is worth the effort, it does send a message and you can collect what is owed.
If being a landlord is simply a hobby providing pocket money the loss is nothing but business do not view it that way or they would be out of business.
- Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes10y
My answers above reflect operations in Texas and in Texas only
Matthew- I do mean this with all do respect. You can shift or attempt to shift all the costs in the lease but the issue is collection. I outlined above the difficulty and in reality almost impossible collection of a judgment from a tenant in Texas:
- Garnishment is not permitted
-Homestead in exempt
- Car is exempt
-Personal property up to $30,000
-Retirement Accounts
- I could add the cattle and sheep as well
How many tenants have asset above and beyond this ?
Greg- like the name by the way. I think I outlined pretty well the difficulty in Texas. This is the trade off we have for being able to evict a tenant in +-21 days. At some point every business has to consider whether to throw good money after bad. I always suggest and practice going after a tenant in Small Claims Court if they can be located due to the low costs +-$150 and/or putting the deficiency on their credit
- Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes10y
@Matthew Kreitzer I sat in court the other day observing a couple cases because I had to get something recorded at the courthouse...2 cases, which were HOAs with lawyer representation versus per se homeowners. I saw the judge arbitrarily reduce the HOA claim amount for no apparent reason. What I found significant was that the lawyer would present an affidavit of legal fees, and then the judge would go and reduce it by about half to what he felt was reasonable. On one he was like,"I think this should have been only 3 hours of work" and reduce it. The judge also reduced the amount owed to the HOA for no apparent reason, such as throwing out all late fees. When the homeowners complained about owing anything, saying stuff like they had tried to call the HOA and left messages, for which they had no actual proof, the judge would be like, well, I gave you a break, what more do you want, and the homeowner would shut up, case closed.
Curious if that's standard practice in your area. I don't imagine if the judge reduced the legal fees that the law firm eats that, but rather the HOA.
- Attorney · Winchester, VA · Member since 2015 · 726 posts · 387 votes10y
Originally posted by @Kimberly H.:
@Matthew Kreitzer I sat in court the other day observing a couple cases because I had to get something recorded at the courthouse...2 cases, which were HOAs with lawyer representation versus per se homeowners. I saw the judge arbitrarily reduce the HOA claim amount for no apparent reason. What I found significant was that the lawyer would present an affidavit of legal fees, and then the judge would go and reduce it by about half to what he felt was reasonable. On one he was like,"I think this should have been only 3 hours of work" and reduce it. The judge also reduced the amount owed to the HOA for no apparent reason, such as throwing out all late fees. When the homeowners complained about owing anything, saying stuff like they had tried to call the HOA and left messages, for which they had no actual proof, the judge would be like, well, I gave you a break, what more do you want, and the homeowner would shut up, case closed.
Curious if that's standard practice in your area. I don't imagine if the judge reduced the legal fees that the law firm eats that, but rather the HOA.
I can tell you why that probably happened;
In Virginia, there are two types of fee shifting provisions: A liquidated damages clause which sets a specific amount of attorneys fees in the case of a breach of contract. For instance; You breach, you pay 25% of the balance in attorneys fees.
The other type of fee shifting provision is a "reasonable provision". For instance, you breach, you pay reasonable attorneys fees.
Judges love to knock us attorneys on the later, which is why I don't like it. However, there is a fantastic common law doctrine known as the "American Rule" in most jurisdictions that allow liquidated damages for attorneys fees.
HUGE DISCLAIMER: Do not use either of these provisions in your contracts without first consulting local counsel. Each state is unique.
@Greg H.
Collections doesn't sound all that much different than here in Virginia, with the exception of limitation on Wage Garnishments. However, that is far from the only or even best way of proceeding into collections. There are dozens of other avenues; till taps, bank levies, foreclosure sales, etc that are available to the average collections firm. Yeah, collections is hard if you're not a collections attorney I'm sure, but I have no doubt that a skilled Collections firm could easily collect, and with minimal costs to the original poster with the appropriate provisions in the lease agreement.
- Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes10y
Thanks @Matthew Kreitzer I'll have to look into that!
- Member since 2016 · 13k+ posts · 12k+ votes10y
Landlords need to take heed to this situation. Going after tenants for rent owed is the primary issue landlords have. This is the reason a landlord must take action against every tenant as soon as rent owed is one day late. If you operate a shoddy business and allow any tenant to pay late, regardless of how good if a past record they have, you could end up being owed months of back rent that you will simply give up on ever collecting. If you don't believe it will happen to you that is the very reason it will happen to you. No good deed goes unpunished.
Lenient, tenant friendly, business practices are the number one reason most landlords lose money.
- Investor · San Marcos, TX · Member since 2015 · 272 posts · 360 votes10y
@Thomas S. You may be right. Part of running a business is also knowing when something is not worth the time and effort. You are not really a savvy business owner if you spend dozens of hours worrying about hundreds of dollars. What is your hourly rate? When you factor in that you can write the bad debts off, then your ROI for pursuing small sums of money may not add up.
If I knew I could get the $3,700 it may be worth the time.
Here is a silly formula...
(Opportunity Cost X Hours Involved) + Transaction Cost < $3700 X Expected Chance of Success (True)
Opportunity cost: In my case I am a consultant part time that charges $120-150 and hour. For this example I will just use consulting fees.
Opportunity cost (consulting fee): $120 hr
Hours involved @ approx: 27
Transaction cost (Court Costs): $275
Expected Chance of success: 60%
(120 X 27) + 275 < 3700 X .60
3515 < 2220 FALSE
This doesn't account for tax advantages with write-offs. People chase these things because they feel they have been wronged. You can quantify this decision in any number of ways.
Your time has a value whether it is spending it with family, working on a business, or pursuing other ways to build wealth.
- Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes10y
I have to go with @Greg H. on collections in Texas. I really like Texas law for the most part but collections is a different animal there. I think they have an unlimited deduction for houses. In Wyoming we can garnish up to 25% of wages if over the poverty line, for child support you can garnish up to 35%. We only give $10K exemption for a house and $2500 for one vehicle, and $2K for household goods. I have not done collections for decades, and even then it was mostly for child support. Small claims for our area is also the way to go. It is a $10 filing fee, but $50 to get them served. Attorneys can appear but judges keep them in check. No real rules of evidence.
- Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes10y
I actually think this is what was going on, since in both cases the judge asked what the law firm charges per hour:"There are many ways of calculating prevailing-party attorney fees. Most courts recognize that actual costs may be disproportionate and inequitable. Thus, many jurisdictions rely on other calculations. Many courts or laws invoke a lodestar' calculation: reasonably expected billable hours multiplied by a reasonable hourly rate, sometimes multiplied by a factor reflecting the risk or complexity of the case. Courts in class actions frequently award fees proportionate to the damages recovered."
- Attorney - Realtor - Investor · Lubbock, TX · Member since 2015 · 3 posts · 1 vote10y
Texas may be the most friendly debtor state in the Union. The amount of exemptions that are statutorily allowed against a judgment creditor mean that a great amount of judgments are never collected (you do have a very nice piece of paper from the Courthouse though). Edith D is in the unique position of having someone that appears may have non-exempt property. A properly obtained and filed abstract will perfect your judgment lien for a period of 10 years. You can re-file it one time prior to the 10 year expiration for an extension of 10 years. If the non-exempt property isn't sold within that time period you've lost your lien and ability to collect in that method. There are other forced sale provisions to collect a judgment lien in Texas, however your out of pocket costs go up greatly. Additionally, while breach of contract does allow for an award of attorney's fees in Texas, they are simply part of the judgment that is obtained and you must still be able to collect on the judgment to actually recoup the attorney's fees. The only garnishment in Texas is for Child Support and certain taxes. There is no judgment garnishment in Texas.
- Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes10y
For those in Illinois, btw I am not a lawyer, this is not legal advice, I found this from a reputable source online, which explains what I saw happening in court as I described above:The determination as to what constitutes a reasonable attorney fee award is within the discretion of the trial court. In assessing the reasonableness of attorney fees, the trial court should consider the skill and standing of the attorneys employed, the nature of the case, the novelty and difficulty of the issues involved, the degree of responsibility required, the usual and customary charge for the same or similar services in the community, and whether there is a reasonable connection between the fees charged and the litigation.
- Residential Real Estate Broker · San Antonio, TX · Member since 2016 · 506 posts · 311 votes10y
@Edita D. I've had one successful partial payback for rent, and have one other still being ignored for $4500 in damages and unpaid rent. With a judgement in hand and the lease documents/account details, I just hand it over to a collections service (such as RentDebt) and they keep the debt alive.
The one that settled couldn't get a new place until the judgment cleared. The other was a fellow (hah!) Real Estate Agent and (it turns out) deadbeat.
These services do take a chunk when they collect. Maybe 40%.
- Member since 2016 · 13k+ posts · 12k+ votes10y
If I was a dead beat tenant I would defiantly want to rent from you knowing you can not afford to collect. Better hope the word does not get out.
My reputation on the other hand, as applicants have told me, is that I go after tenants for any amount big or small. I make sure my tenants regret not paying on time and in full. It's a good reputation to have in this business.
- San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes10y
Originally posted by @Matthew Kreitzer:
Originally posted by @Kimberly H.:
@Matthew Kreitzer I sat in court the other day observing a couple cases because I had to get something recorded at the courthouse...2 cases, which were HOAs with lawyer representation versus per se homeowners. I saw the judge arbitrarily reduce the HOA claim amount for no apparent reason. What I found significant was that the lawyer would present an affidavit of legal fees, and then the judge would go and reduce it by about half to what he felt was reasonable. On one he was like,"I think this should have been only 3 hours of work" and reduce it. The judge also reduced the amount owed to the HOA for no apparent reason, such as throwing out all late fees. When the homeowners complained about owing anything, saying stuff like they had tried to call the HOA and left messages, for which they had no actual proof, the judge would be like, well, I gave you a break, what more do you want, and the homeowner would shut up, case closed.
Curious if that's standard practice in your area. I don't imagine if the judge reduced the legal fees that the law firm eats that, but rather the HOA.
I can tell you why that probably happened;
In Virginia, there are two types of fee shifting provisions: A liquidated damages clause which sets a specific amount of attorneys fees in the case of a breach of contract. For instance; You breach, you pay 25% of the balance in attorneys fees.
The other type of fee shifting provision is a "reasonable provision". For instance, you breach, you pay reasonable attorneys fees.
Judges love to knock us attorneys on the later, which is why I don't like it. However, there is a fantastic common law doctrine known as the "American Rule" in most jurisdictions that allow liquidated damages for attorneys fees.
HUGE DISCLAIMER: Do not use either of these provisions in your contracts without first consulting local counsel. Each state is unique.
@Greg H.
Collections doesn't sound all that much different than here in Virginia, with the exception of limitation on Wage Garnishments. However, that is far from the only or even best way of proceeding into collections. There are dozens of other avenues; till taps, bank levies, foreclosure sales, etc that are available to the average collections firm. Yeah, collections is hard if you're not a collections attorney I'm sure, but I have no doubt that a skilled Collections firm could easily collect, and with minimal costs to the original poster with the appropriate provisions in the lease agreement.
Matthew, did you work as an attorney in a state before being admitted to the bar in Virginia? You refer to yourself as a long-time collection attorney, but you were admitted to the Virginia bar in 2014. I found this info on the website for the firm you work at. Simple Google search. It mentions the college you graduated from, and that you passed the bar in 2014, with no reference to prior work experience. So, I'm wondering why you are referring to yourself as a long-time collection attorney.
And when you refer to setting some arbitrary liquidated damages clause for attorney fees in a lease - in a jurisdiction where this would be allowed - good luck with that.
First, good luck finding a jurisdiction where it's allowed, and second, liquidated damages are only to be used when the cost for a breached contract would be too difficult to assess. Finding out what your attorney's fees would actually be, very easy.
Therefore, I completely disagree with you, that any landlord could get away with putting some random charge for attorney fees that never happened - into a lease as a liquidated damages clause that could ever get enforced - even if they did live in some mystery pod where liquidated damages clauses were allowed.
- Attorney · Winchester, VA · Member since 2015 · 726 posts · 387 votes10y
Originally posted by @Account Closed:
Originally posted by @Matthew Kreitzer:
Originally posted by @Kimberly H.:
@Matthew Kreitzer I sat in court the other day observing a couple cases because I had to get something recorded at the courthouse...2 cases, which were HOAs with lawyer representation versus per se homeowners. I saw the judge arbitrarily reduce the HOA claim amount for no apparent reason. What I found significant was that the lawyer would present an affidavit of legal fees, and then the judge would go and reduce it by about half to what he felt was reasonable. On one he was like,"I think this should have been only 3 hours of work" and reduce it. The judge also reduced the amount owed to the HOA for no apparent reason, such as throwing out all late fees. When the homeowners complained about owing anything, saying stuff like they had tried to call the HOA and left messages, for which they had no actual proof, the judge would be like, well, I gave you a break, what more do you want, and the homeowner would shut up, case closed.
Curious if that's standard practice in your area. I don't imagine if the judge reduced the legal fees that the law firm eats that, but rather the HOA.
I can tell you why that probably happened;
In Virginia, there are two types of fee shifting provisions: A liquidated damages clause which sets a specific amount of attorneys fees in the case of a breach of contract. For instance; You breach, you pay 25% of the balance in attorneys fees.
The other type of fee shifting provision is a "reasonable provision". For instance, you breach, you pay reasonable attorneys fees.
Judges love to knock us attorneys on the later, which is why I don't like it. However, there is a fantastic common law doctrine known as the "American Rule" in most jurisdictions that allow liquidated damages for attorneys fees.
HUGE DISCLAIMER: Do not use either of these provisions in your contracts without first consulting local counsel. Each state is unique.
@Greg H.
Collections doesn't sound all that much different than here in Virginia, with the exception of limitation on Wage Garnishments. However, that is far from the only or even best way of proceeding into collections. There are dozens of other avenues; till taps, bank levies, foreclosure sales, etc that are available to the average collections firm. Yeah, collections is hard if you're not a collections attorney I'm sure, but I have no doubt that a skilled Collections firm could easily collect, and with minimal costs to the original poster with the appropriate provisions in the lease agreement.
Matthew, did you work as an attorney in a state before being admitted to the bar in Virginia? You refer to yourself as a long-time collection attorney, but you were admitted to the Virginia bar in 2014. I found this info on the website for the firm you work at. Simple Google search. It mentions the college you graduated from, and that you passed the bar in 2014, with no reference to prior work experience. So, I'm wondering why you are referring to yourself as a long-time collection attorney.
And when you refer to setting some arbitrary liquidated damages clause for attorney fees in a lease - in a jurisdiction where this would be allowed - good luck with that.
First, good luck finding a jurisdiction where it's allowed, and second, liquidated damages are only to be used when the cost for a breached contract would be too difficult to assess. Finding out what your attorney's fees would actually be, very easy.
Therefore, I completely disagree with you, that any landlord could get away with putting some random charge for attorney fees that never happened - into a lease as a liquidated damages clause that could ever get enforced - even if they did live in some mystery pod where liquidated damages clauses were allowed.
Yes, I have been practicing and first chairing my own cases since I was admitted to the bar back in 2014. My first job was Of Counsel with a law firm, a position typically reserved for more experienced, older attorneys. I have more court room time than the vast majority of my colleagues receive before their fifth year of practice as an associate; because the standard time line for placing an associate in the Court Room is around their second or third year of practice. I have first chaired enumerable cases due to the nature of my employment, probably totaling around 1K to 2K first chair cases at this point.
I have gone up against Counsel that have been practicing for more than 30 years, and regularly appear in at least five jurisdictions to argue before Judges on issues related to; Writs of Fieri Facias, Bank Attachments and Levies, and Garnishments.
What is more important to the calculation of an attorney's time in practice is not how long they have been admitted to the bar, but how many hours they have logged in the Courtroom. I am in the Courthouse almost every day of the week on issues related to; Bankruptcy, Medicaid, Elder Abuse, Family Law, Collections, Contract Disputes, and Landlord/Tenant disputes. When I say I have been at this quite a long time, it is absolutely true, because I have logged more hours in the Courtroom than most of my colleagues in my particular peer group.
But that is besides the point, because nothing about that changes the nature of the information I am providing.
I have routinely argued and had upheld, in my jurisdiction, attorney fee provisions for 25% of principal owed. That is actually pretty standard for at least six of my clients. None of the fifteen judges I have appeared before have knocked my clients for such provisions.
By way of anecdote: I have my own special docket day in some jurisdictions where I present approximately 50-100 cases to the local Judge. In every single one of those cases there is a liquidated, percentile damages clause for attorneys fees. Not once have any of the Judges these cases appear before refused to uphold the fee provision.
But you're welcome to ignore my educated, experienced, and nuanced point of view in favor of your own. I only encourage that you speak with local counsel before doing so, because you are leaving tens of thousands of dollars in potentially recoverable money on the table.
DISCLAIMER: Each state is unique, and if you want to draft a good lease agreement, you should hire a local, licensed attorney.
- Investor · Cincinnati, OH · Member since 2015 · 374 posts · 120 votes10y
Originally posted by @Thomas S.:
I personally do not see being a landlord as some special business. When a store is stiffed for a couple of hundred dollars the customer will get a letter from their lawyer and they will most assuredly take that customer to small claims court if they do not pay. The reason why most landlords advise against, and do not peruse tenants owing money, is because they are not operating a business. They consider being a landlord as a hobby. Lose some money who cares, not worth chasing crooks cause it's only extra money I can live without.
I completely disagree!
For the higher end tenants, it can be worthwhile to pursue in court but for most tenants it is not. I'd be a rich man if I would have pursued all the debts owed to me and collected. The "and collected" part is the key issue here. You can't squeeze blood from a turnip.
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