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29
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Tashfeen Islam
  • Rental Property Investor
  • New York, NY
11
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29
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Wage Garnishments for Past Tenants' Balances

Tashfeen Islam
  • Rental Property Investor
  • New York, NY
Posted

Hello,

Two tenants of mine, one who moved out in November 2020 and another that is in the process of being evicted, each owe $1.7K+ in balances due to unpaid rent, utilities, and damages caused to the property, even after I retain their entire security deposits. Both signed Texas Association of Realtor (TAR) leases with my property manager as the property is located in the state of Texas. 

My property management company says they have submitted one case to a collection agency and will do the same for the other after that tenant is evicted but to this day, nine months later, I have yet to receive any feedback from collections about the tenant that vacated last year.

Thus, if both of these tenants are taken to court, how would I be able to be paid back for what they still owe? Would it be through a wage garnishment program at work or some other manner?

If for some reason they win the judgement, would I be held liable for their legal fees? How about if I win, are they liable to pay for mine?

Based on the balance amounts, does it even make sense to pursue both tenants legally?

Thanks in advance!

Tash

Most Popular Reply

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12,527
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Drew Sygit
  • Property Manager
  • Royal Oak, MI
8,920
Votes |
12,527
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Drew Sygit
  • Property Manager
  • Royal Oak, MI
Replied

Welcome to the nightmare of collections:(

We've used several collection agencies in the past and despite their promises, they all failed to regularly or consistently communicate.

What were the tenants' credit scores? 

If over 660 you have a pretty good chance of collecting.

The lower the scores go, the lower your chances of collecting anything besides a garnishment of their state income tax refunds.

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