CHANDLER, AZ · Member since 2010 · 36 posts · 1 vote
Hi
My tenant reached an agreement to evict by end of March, however, I don't know how to recoup my > 10k sum of money he owes to me in rent and late fees. Could someone recommend me a money collection firm who would get it done on contingency basis?
I don't have any advice, but rather seeking if that's okay. When did you realize that you needed to evict and were there any warning signs before the tenant even signed the lease? I'm thinking about getting into REI and looking for any advice I can get. Thank you
Investor · Takoma Park, MD · Member since 2016 · 166 posts · 147 votes
9y
10K? Ouch! How did you let it get to that point? When you say they reached an agreement to evict by the end of March, who did they reach this agreement with? If they reached the agreement with you, is it in writing? Do they think things are free and clear once they leave? And finally, if you've already given them 10K, what makes you think they really are going to leave in a couple of weeks?
Chandler, AZ · Member since 2017 · 7 posts · 6 votes
9y
There is a whole industry out there that buys judgments. When you get an eviction and a monetary judgment, it will have a money value and will come with your State's Annual percentage rate. You will want to learn what percentage your judgment will grow in your State. and you will want to learn when you must re-affirm your judgment. A judgment expires! Most judgment buyers will only buy if they can recover more than what they pay you. Judgment buyers may be loath to buy your new judgment because they know the tenants don't have any assets to get today. If you allow your judgment to season, i.e. let the tenants move on and forget about you, they may have now collected assets. These assets are collectable legally and judgment buyers know how to do it. You may wish to contact a judgment buyer and see what they say.
To mitigate this problem in the future, have an accounting schedule. i.e. Rent is due on the first. There will be a 5 day grace period. If any rent is not paid by the 6th, an eviction starts. Once an eviction starts it does not stop. Never take partial payments. Obviously, you will want to coordinate your accounting schedule with your eviction Attorney to comply with the local Landlord/Tenant Act.
Investor · Scottsdale, AZ · Member since 2016 · 1k+ posts · 885 votes
9y
Depends. Did they sign a notarized agreement that they owe you $10,000? Probably not, I'm thinking. You should file for damages and take it to court (small claims) and then at least you have a judgment you can work with. If they got that far behind, they told you stories, you believed those stories and now they are telling you more stories (that they are going to pay) You need something with a bit more teeth to it than a piece of paper they've signed.
I don't have any advice, but rather seeking if that's okay. When did you realize that you needed to evict and were there any warning signs before the tenant even signed the lease? I'm thinking about getting into REI and looking for any advice I can get. Thank you
@Brian Coleman you are spot on. This one could have been avoided. There should never be more than a month's missed payments in either AZ or TX. I invest in both areas. Both areas taake paying the landlord seriously. But, you" gotta know what you're doing"
Find someone who is doing what you want to do and then do a couple of joint investments with them to learn the ropes and avoid this kind of entanglement.
CHANDLER, AZ · Member since 2010 · 36 posts · 1 vote
9y
Thanks to all those who replied. There have some rent payment loss and a lot of it is late fees carried from back.
I am also told that beyond 10k could/have-to take it to courts and sue. I don't have much experience with laws in Oregon as to what I need to have before I can sue, I don't think I need a judgement but I am not sure. Trying to find all these details.