Real Estate Investor · Junction City, KS · Member since 2010 · 23 posts · 3 votes
Long story short; I rented out my home to a couple and their mom that started on Nov 1 2010. I used the model lease agreement provided by BP which covered everything. I received rent for Nov and December. I did not receive rent for Jan and then now I have not received it for Feb. I told them to move out a couple weeks ago and they are getting out today. Also they had not transfered all the utilities into their name so I had to use the security deposit to pay for it. They are in the military so this will be too easy to get my money but I just need to know what all that I can sue for when I go to small claims court. Rent for Jan was $1000, rent for Feb was also $1000 but they stayed half of the month to the 14th so I am assuming only $500, am I entitled to the full month of rent? Utilities now range into the $450-500 range, I communicated solely via email, my lease agreement has them locked in for 1 year and they still have 8 months to go but I evicted them. So I was wondering if I could also sue for property manger fees to get a new tenant into the home and anything else.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
15y
Just two quick notes, 1. while you may be owed the rents over the entire lease term, you have an obligation to make good faith attempts to re-let or lease the property for the same amount of the old lease over the remaining term. The thinking is that you need to be made whole, indemnified for the loss of rents, if you don't advertise it and simply expect them to pay for an empty unit, most judges won't go there, they also won't allow you to raise the new rents and not rent it expecting the old lease to cover your loss while attempting to increase your rents.
2. If you get a judgment on someone on active duty, you will get your money, it will come out of their pay check. Contact the Chief Finance Officer or Commander Finance Division at the installation where the member is stationed.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
15y
Two things determine what you can sue for: your lease and local laws (state, county, city/town). One thing determines what you will get: the judge who handles the case.
Real Estate Investor · Alpharetta, GA · Member since 2010 · 415 posts · 484 votes
15y
Is there anything that you learned from this? Did you have a feeling that these tenants would not work out from the get-go? What happened, and could you have foreseen it?
I am always interested to hear about how and why tenants go south. I know it's part of business, but it seems to be the most important part of making any rental property work.
Commercial Real Estate Broker · Alamo, CA · Member since 2011 · 6 posts · 5 votes
15y
Did you serve them with an Unlawful Detainer order? A 3-Day Pay or Quit?
Not sure how it works in your state, but in CA, the first step in evicting a non-paying tenant is to serve a 3 day notice, followed by filing and serving an Unlawful Detainer with a court of jurisdiction. If they leave the property prior to the hearing, the matter needs to be amended to a Small Claims action, depending on the amount being suit for. As for that, it's probably spelled out in your lease agreement. Technically, the lease agreement binds the tenant to pay you the monthly rent for as long as the term is in effect. So if you agreed the lease payment would be $1,000/month, then they owe you $10,000 ($12,000 less the two months paid) plus whatever costs you incur to bring the property back to the condition it was in when you handed the keys over to them. Small Claims court usually limits the amount of damages to some fairly small amount, ($5k in CA). You should check with your court to find out. In order to sue for more than this amount, in California at least, you'd have to file a Civil case against the tenants in Superior Court and that would involve an attorney as you can't take that action on your own. You may want to talk with an attorney anyway, someone who specializes in evictions. In any case, be prepared for a long legal process if you decide to go after them in court.
A better path may be to first education yourself about what you could do to them financially in court and then propose a settlement. It would pay them to avoid having a judgment against them as that will for sure ruin their credit rating, assuming it's not already in the toilet.
Real Estate Investor · Junction City, KS · Member since 2010 · 23 posts · 3 votes
15y
Deuce,
My fault in this is that I did not screen the tenants. I was home from Iraq for 2 weeks and needed to get the place rented out as soon as possible because I did not want the house to sit vacant for 5 months until I came home for good. I was telling myself the whole time that if I wasn't so in a rush that I would of not of rented to these guys.
Real Estate Investor · Junction City, KS · Member since 2010 · 23 posts · 3 votes
15y
Steve thanks for your reply.
For the military, we are obligated to pay for our debts. We get in trouble and can and will lose rank. My self and the tenant are both in the military. The great thing is that once a judgement is given, I can then go take that to the Finance office and I will get paid my money automatically as it would come out of the tenants paycheck. Essentially he will get no pay until his debt is taken care of.
Commercial Real Estate Broker · Alamo, CA · Member since 2011 · 6 posts · 5 votes
15y
Interesting. That should be very strong incentive for them to shut up and pay. Have you thought of using a management company to screen applicants for you? That way if the tenant doesn't work out, they are the ones on the hook to evict them and get another tenant for you. It could avoid a lot of hassles for you in the future.
Real Estate Investor · Junction City, KS · Member since 2010 · 23 posts · 3 votes
15y
Steve I did not have time to hire a company to do it, next time though I will defiantly consider it.
I am really looking for what I will be able to sue for. Right now I will be looking to sue for
Rent for Jan/Feb
Utility Bills
Small Claims Court Fees
Late Payment fees per the contract
The limit for small claims in Kansas is $4000, can anyone let me know if it would be possible to just go head an sue for $4000 and file the petition as lost rent for the remainder of the lease.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
15y
Do you know where they are currently at, so that the legal papers can be served upon them?
Sue for whatever you think you can get. Lots of times tenants are no-shows, and you get a default judgment. Tenant is entitiled to appeal the judgment within a specified time and under other specified conditions (like they might have to put up some of the amount due that you "won"). If there is no challenge from the tenant at all, you win the judgment.
Lots of posts on BP say don't bother getting a money judgment as you don't stand much chance of collecting it from a deadbeat. I have voiced disagreement with that, since even if I never collect, I have that judgment in place to follow that deadbeat. That way, any future potential landlord should be on alert about this poor quality tenant.
But here you have a perfect reason JUSTIFYING getting a judgment - you know you'll eventually get paid with fairly good certainty. Go for it!
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
15y
Just two quick notes, 1. while you may be owed the rents over the entire lease term, you have an obligation to make good faith attempts to re-let or lease the property for the same amount of the old lease over the remaining term. The thinking is that you need to be made whole, indemnified for the loss of rents, if you don't advertise it and simply expect them to pay for an empty unit, most judges won't go there, they also won't allow you to raise the new rents and not rent it expecting the old lease to cover your loss while attempting to increase your rents.
2. If you get a judgment on someone on active duty, you will get your money, it will come out of their pay check. Contact the Chief Finance Officer or Commander Finance Division at the installation where the member is stationed.
Real Estate Investor · Abu Dhabi, UAE · Member since 2010 · 48 posts · 16 votes
15y
Did you have a deployment or PCS clause in the lease? Often military members will use this to get out of a lease and can make it harder to get reimbursement for your costs. Most of the time the clause is used legitimately and should be honored as such, but there are always those few who try to scam the system...
Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
15y
Originally posted by Steve Babiak:
Lots of posts on BP say don't bother getting a money judgment as you don't stand much chance of collecting it from a deadbeat. I have voiced disagreement with that, since even if I never collect, I have that judgment in place to follow that deadbeat. That way, any future potential landlord should be on alert about this poor quality tenant.!
silly question: where does that judgement show up, on their credit report? Is there a way to search for free to see if a tenant has a judgement against them?
Real Estate Investor · Sacramento, CA · Member since 2008 · 566 posts · 356 votes
15y
Originally posted by Bienes Raices:
Originally posted by Steve Babiak:
Lots of posts on BP say don't bother getting a money judgment as you don't stand much chance of collecting it from a deadbeat. I have voiced disagreement with that, since even if I never collect, I have that judgment in place to follow that deadbeat. That way, any future potential landlord should be on alert about this poor quality tenant.!
silly question: where does that judgement show up, on their credit report? Is there a way to search for free to see if a tenant has a judgement against them?
Bienes
In WI, the state court cases are on the internet. I screen the tenant even before showing the unit. It shows everything from traffic tickets up and goes back many many years.
I've found just asking for their full name while doing the phone screening is an effective screening tool by itself.