Suing Tenant for Delinquent Notice??

Question

My partner and I just purchased a duplex which had tenants on both sides. We gave 60 day notice for one tenant to move out so we can move in. Tenant has been extremely difficult but finally moved out this week. However, I got a delinquent notice for garbage/sewage which according to his lease agreement, he was responsible to pay $397.50. How do we proceed? I know we pay the delinquency, but is the worth court costs to sue?

Bill B. · Answer

You’re on about strike 4 with this PM. Find anyone else. As mentioned the $400 isn’t life changing money and you shouldn’t lose sleep over it. OTH, the PM should be taking care of this and reimbursing you out of the security deposit they should have held. And you should have received a statement with its balance at closing. (After all you owe it minus deductions they have to prove to the tenant.)

Be thankful they’re gone and find a new PM and you should be golden. If you want you can go to small claims court or hand it off to a collections agency.

Allan C. · Answer

@Angel Glancy $400 is not worth the time and effort to pursue. There are some lessons learned here with the acquisition process, but suggest to focus your energy on forward activities.

Angel Glancy · Answer

@Bill Brandt

I'm not sure of the exact amount of the security deposit at this time. I've been reaching out to the PM company and that's been a challenge as well.

The tenant that moved was late with all payments monthly. We purchased the property while he was still there but PM has not sent me the deposit. Although, it is in the lease agreement.

Bill B. · Answer

That’s not how a security deposit or a PM is supposed to work.

Are you saying this 1 tenant got so far behind on their water bill that their entire security deposit ($1,000?) was used to pay it off and then the tennant was allowed to stay with no security deposit long enough to run up another $400 delinquency? They should have been evicted or required to personally pay the water bill the first time. If they weren’t evicted and the security deposit was used they should have required it be replaced by the tenant.

Collecting this money is also something the PM should be trying to do. Who’s covering any repairs or cleaning at move out if there’s no security deposit?

If they aren’t offering to go after all the monies for you I’d start interviewing other PM’s. Tell them why you’re looking and you may find good advice given or at least assurances that would never happen with the new company. GL.

Angel Glancy · Answer

@Bill Brandt thanks for the response!

The issue there seems to be that the previous PM company kept the security deposit to pay the water bill that was delinquent with previous owner, so unfortunately, there's not a security deposit I can use to cover the cost.

Bill B. · Answer

You take it out of the security deposit.  Just list it as a deduction and keep a copy of the delinquency.