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Nicole DeLeon
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Tenants Trashed SFH on their way out

Nicole DeLeon
Posted Jul 14 2022, 06:52

Hello,

We recently had tenants move out, and in 10 years and 8 properties, we've never seen anything like this. The home is large, so there was a large deposit and a pet deposit totaling $2400. There were flies everywhere, actual pet poop all over one room, and evidence of more pets than allowed as seen by abandoned property everywhere. The 800-junk bill alone was $1100. They left half their belongings behind, food and even alcohol. Every drain and toilet was clogged. The A/C was barely functional and required an over $2000 repair due to mold. Needless to say, it was disgusting, and I don't know how people live this way. The place needed paint and carpet along with a LOT of other TLC. The total to get this place back into rentable form was $18,000.

Of course, they refused to give us their forwarding address. Although we have several properties, this is not our main occupation. We both work at other jobs. Our property manager isn't a full-time manager. She just helps us rent the homes. But I think we're going to need help here.

The limit for small claims in this county is $10K. Do we hire a lawyer to get a judgment? Are there collection agencies that specialize in this sort of thing? Any recommendations?

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Chris Seveney
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Chris Seveney
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Replied Jul 14 2022, 07:04
Quote from @Nicole DeLeon:

Hello,

We recently had tenants move out, and in 10 years and 8 properties, we've never seen anything like this. The home is large, so there was a large deposit and a pet deposit totaling $2400. There were flies everywhere, actual pet poop all over one room, and evidence of more pets than allowed as seen by abandoned property everywhere. The 800-junk bill alone was $1100. They left half their belongings behind, food and even alcohol. Every drain and toilet was clogged. The A/C was barely functional and required an over $2000 repair due to mold. Needless to say, it was disgusting, and I don't know how people live this way. The place needed paint and carpet along with a LOT of other TLC. The total to get this place back into rentable form was $18,000.

Of course, they refused to give us their forwarding address. Although we have several properties, this is not our main occupation. We both work at other jobs. Our property manager isn't a full-time manager. She just helps us rent the homes. But I think we're going to need help here.

The limit for small claims in this county is $10K. Do we hire a lawyer to get a judgment? Are there collection agencies that specialize in this sort of thing? Any recommendations?


 1. I would have filed an insurance claim for vandalism

2. I would get an attorney and do a judgment. I just did it with a property we own as they moved out in middle of winter, left the windows open and pipes froze and destroyed the place. We got the judgment and now have a hearing. It also will alert other landlords when they pull credit they will see the judgment and if smart look into what it is about.

3. Yes there are tons of collection agencies, in some states you an even garnish wages. Be advised a collection agency will take a percentage. 

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Nicole DeLeon
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Nicole DeLeon
Replied Jul 14 2022, 08:04

Thanks for your advice. I never considered filing an insurance claim. I'll call our broker. Also concerned that all 8 property insurance premiums will go up at renewal.

Certainly, the attorney will be less expensive, but they won't try to collect, right? They'll just get the judgment. Are there any collection agencies that will get the judgment as part of their fee? How does one find a reputable one?

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Erin Dreher
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Erin Dreher
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Replied Jul 14 2022, 08:21

I am in the same boat as you @Nicole DeLeon. We are going to be turning over the expense of cleaning up after a disgusting tenant to a real estate attorney. Our tenant has moved out of state since he abandoned our property with food and maggots in the fridge. Real hardwood floors ruined from pet feces. I have been a property manager for 12 years and I still don't understand how people can have utter most blatant disregard for someone else's property. 

Upon Move in: Make sure you gather ID's, Social Security #'s and have them sign off on a move in inspection noting the condition of the house. I think it would be wise to do a property inspection every 3 months. Call it an air filter change and get inside that house!

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Nicole DeLeon
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Nicole DeLeon
Replied Jul 14 2022, 08:47
Quote from @Chris Seveney:
Quote from @Nicole DeLeon:

Hello,

We recently had tenants move out, and in 10 years and 8 properties, we've never seen anything like this. The home is large, so there was a large deposit and a pet deposit totaling $2400. There were flies everywhere, actual pet poop all over one room, and evidence of more pets than allowed as seen by abandoned property everywhere. The 800-junk bill alone was $1100. They left half their belongings behind, food and even alcohol. Every drain and toilet was clogged. The A/C was barely functional and required an over $2000 repair due to mold. Needless to say, it was disgusting, and I don't know how people live this way. The place needed paint and carpet along with a LOT of other TLC. The total to get this place back into rentable form was $18,000.

Of course, they refused to give us their forwarding address. Although we have several properties, this is not our main occupation. We both work at other jobs. Our property manager isn't a full-time manager. She just helps us rent the homes. But I think we're going to need help here.

The limit for small claims in this county is $10K. Do we hire a lawyer to get a judgment? Are there collection agencies that specialize in this sort of thing? Any recommendations?


 1. I would have filed an insurance claim for vandalism

2. I would get an attorney and do a judgment. I just did it with a property we own as they moved out in middle of winter, left the windows open and pipes froze and destroyed the place. We got the judgment and now have a hearing. It also will alert other landlords when they pull credit they will see the judgment and if smart look into what it is about.

3. Yes there are tons of collection agencies, in some states you an even garnish wages. Be advised a collection agency will take a percentage. 


 I just spoke to the insurance broker. He said you can't get a judgment if you file an insurance claim. According to what you are doing, that seems incorrect. My insurance contract has nothing to do with whether they owe us under our lease agreement with them, right? Also, why do you have a hearing AFTER the judgment?

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Sergey A. Petrov
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Sergey A. Petrov
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Replied Jul 14 2022, 08:59

The insurance broker is simply telling you that you can’t double dip. Either file a claim and collect insurance proceeds or forget insurance and go for legal action. You can’t collect under your insurance and then also go try collecting from the tenant. Your insurance company may even subrogate (did you collect proof of insurance from your tenant?) and/or pursue your tenants on their own and if they are successful in collecting that claim may not affect you and your premiums 

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Nathan Gesner
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Nathan Gesner
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ModeratorReplied Jul 14 2022, 20:39
Quote from @Nicole DeLeon:

It doesn't sound like you have $10,000 in damages. Even if you do, you are unlikely to collect anything so you might as well take them to Small Claims, hand it over to collections, and move on.


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Colleen F.
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Colleen F.
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Replied Jul 15 2022, 08:49

@Nicole DeLeon while it could cost you $18000 to get it rent ready you cannot bill all of that to the tenant as damages since things like carpet are pro-rated on useful life and painting is going to be considered wear and tear.  I think your most reasonable option is what @Nathan Gesner  go to small claims court.  Just make sure you send your letter on the deposit minus damages to the property address in the timeframe for your state showing how much they owe.