Collecting from Ex-Tenants?

5 Replies

As a preface, I have a bunch of C class apartments. Occasionally someone leaves without paying their last month's rent, I evict someone, or some other situation arises where a tenant has moved out while still owing me money. I typically just let it go. If I evicted them, I do go through a damages hearing and docket the judgement right away. Even then, I've never recovered any meaningful amount of money in these situations.

I recently got a call from a guy that runs Credit Management Control. They collect from people in these situations. 

I just had a situation arise today where a tenant is moving out, and hasn't paid December's rent. Also, she's on a month to month lease with a 60 day move out notice. That means that if I don't find a renter, she's on the hook for January and February. She claims she's moving out of state. 

I'm going to go file for eviction, mostly out of spite really, lol, as it's one of the only things I can do to her. I'm also going to try the collection people I linked above. 

So my question is, has anyone used this type of (or this exact) service before? Is it at all effective? I know in some cases it wouldn't be, because it'd be like the old 'trying to squeeze water from a stone' situation; where the tenant doesn't have any money, so it's a waste of time. This time though, I think she's good for it. 

Once all this plays out, I'll update this post with the results. In the mean time, any info anyone has on this type of service is appreciated.

Would like to see if this works out.

Good luck!

Originally posted by @Johnny Hastings :

As a preface, I have a bunch of C class apartments. Occasionally someone leaves without paying their last month's rent, I evict someone, or some other situation arises where a tenant has moved out while still owing me money. I typically just let it go. If I evicted them, I do go through a damages hearing and docket the judgement right away. Even then, I've never recovered any meaningful amount of money in these situations.

I recently got a call from a guy that runs Credit Management Control. They collect from people in these situations. 

I just had a situation arise today where a tenant is moving out, and hasn't paid December's rent. Also, she's on a month to month lease with a 60 day move out notice. That means that if I don't find a renter, she's on the hook for January and February. She claims she's moving out of state. 

I'm going to go file for eviction, mostly out of spite really, lol, as it's one of the only things I can do to her. I'm also going to try the collection people I linked above. 

So my question is, has anyone used this type of (or this exact) service before? Is it at all effective? I know in some cases it wouldn't be, because it'd be like the old 'trying to squeeze water from a stone' situation; where the tenant doesn't have any money, so it's a waste of time. This time though, I think she's good for it. 

Once all this plays out, I'll update this post with the results. In the mean time, any info anyone has on this type of service is appreciated.

These never work. Think about it. If you couldn't get them to pay when the roof over their heads depended on it what could you possibly do to them to get them to pay when it doesn't?

It's called skip tracing.  It can be highly effective as these skip tracers not only chase these people down and hound them for your money, but armed with a judment for damages you are owed, they can garnish wages and so forth.

You will pay up to 50% of what is owed, but it is well worth it if you don't think there's a chance of getting it yourself.

Give them your past bad debt too!  Let them go after it and see if they can recover any of it.

Skip tracers have different payment requirements, so make sure you get one that doesn't get paid until your money is recovered.  DON'T PAY THEM UPFRONT!

I’ve used debt collectors on skips and evictions, 30% is the agreement unless it goes to trial, then it’s 50%. Wage garnishment is the only way I’ve found to get paid. I’ve done it five times. One account paid off (guy kept trying to settle for a discount post-judgement...nope!) one gal had no income so the co didn’t pursue in court. The third declared BK once the garnishment began. I’ve got two others in process now..

Hello @Johnny Hastings .

Sorry about your situation. Years ago, a tenant put holes in my walls, and a hole in the ceiling (stomping around in the attic!), and it was sweet each and every time to get that wage garnishment check from him AND his girlfriend.

On the flip side, I got two judgements on a ex~tenant, to the tune of $9,000.00 she owed me. Never, ever collected a penny, for she was a professional deadbeat. Nor will I ever collect it. Not that I would wish it on her, but she was hit by a car and died. Yikes!  Watch out for "Karma", she'll run you over!!!

Best to you, my friend!

Daniel F. Harb

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