Small Check. Justice.
It is only a $230 check. The second one came yesterday. It looks like junk mail because it comes from a national retailer’s offices that I don’t shop at and it arrives in a plain envelope. This is only the second one I have received so I did not recognize it as containing a check until I opened the envelope. (I receive frequent checks in the mail and open most of my junk mail so I don’t miss one. This is not the only check that comes in an envelope that looks like junk mail.) What a nice surprise. This is money that the tenant owed me—it represents my little piece of justice.
It is really too bad this tenancy ended poorly. The tenant stayed in this house for over 6 years and though they occasionally paid late we had a good relationship and they were current on their rent until near the end. They were late with their last rent payment. When I called about it the conversation was a bit strained but they agreed to send the payment in and add the late fees. That check came a few days later than promised but in the correct amount—it was returned NSF. The next conversation was short and unproductive. I scheduled the court date for eviction.
It wasn't difficult to get the judgment. The tenant didn't even bother to show up at court. The courthouse is only 1 mile from my home and since I do not hold my rentals in LLCs I can represent myself. The judge allowed me everything I asked for, replacement of the check, late fees, NSF fees. He even allowed me to add on the outstanding water bill that came while waiting for the court date.
The tenant did not respond to the court notices of the default judgment so I started the garnishment process. This was only the second garnishment I have done but my LegalShield lawyer walked me through the process. (The form was easy to fill out but I usually discuss forms with LegalShield when I am not very familiar with them or it has been a long time since I have filled them out. It prevents me from making mistakes which may delay results.) I only garnished the wages of one spouse. They had a long work history with the same employer. It was easy to find the address of the corporate offices. The tenant doesn’t earn a lot so it will take a while for me to receive the full payment of $2,900 but I am confident I will. I can look forward to receiving a series of these little checks for the next 5 months.
I still have a little space on my shelf. Maybe I'll put this check toward my liquid fund.
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Comments (8)
Jeff, that's an interesting point about having to hire a lawyer if the rental is held in an LLC. I didn't know that. I have a rental, it's owned by me in my name. I thought about creating an LLC for asset protection. My tenant has been there 7 years and he's come very close to being evicted several times for non-payment of the water bill. I would want to handle the eviction process myself because I manage it and I am an active, hands-on type.
What if the LLC is a single member LLC owned by me? I wonder if I can handle the eviction process then?
Todd Moriarty, almost 7 years ago
@Todd Moriarty, it depends on the jurisdiction. In many Michigan district courts, the judge will require even single member LLCs to be represented by a lawyer. Check with your local court. LLCs are not often needed nor are they as effective as many would claim for asset protection. I have never used them for my rentals.
Jeff Rabinowitz, almost 7 years ago
It's nice to see your LegalShield lawyer was able to help with this. I am hopeful that I will not have to use mine for this reason, but it's good to know that tool is in my toolbox! (I also believe I heard this story on #StoryTimeWithJeff )
Brandon Rader, over 7 years ago
@Brandon Rader, I don't think I covered this incident on Story Time With Jeff, maybe I mentioned it in passing. I have only needed to garnish wages a few times--the stories are similar. You have to train yourself to use your LegalShield membership in order to get value from it. Most of us avoid calling lawyers because we do not want the bill. With the service you should call anytime you have any type of question. It is not always difficult to get justice.
Jeff Rabinowitz, over 7 years ago
It's always a feel good ending when a Landlord can collect what is due and not have to "settle" as so many of us do from time to time! Touche'
T
Terrence Arth, over 8 years ago
Absolutely. An important criteria in tenant selection should always be collectability.
Jeff Rabinowitz, over 8 years ago
Thanks, Jeff ... I enjoyed this piece and find your writing some of the most authentic and realistic I have read on bigger pockets, ideal for the do it yourself small landlord. It is always worthwhile in both the blogs and forums.. Your insight about the LLC, for example, and representing yourself is important from a practical and cost standpoint for the all too common default judgment (contrast this realism and authenticity to the person in the forum who says he has his sf rental in a multi series LLC within a trust, shrouded in the cloak of invisibility, surrounded by a dozen million dollar umbrella policies--indications to me the poster is probably either not realistic, a newbie, paranoid, or owns no actual rentals .)
Michael Boyer, over 8 years ago
Michael, thank you for your comment. I almost don't know what to say. I do know landlords who hold their rentals in LLCs (many do it incorrectly) and I did know one who did the parent company holding the LLC that held the rental thing. He did it correctly and he thought the benefits were worth it. I saw a lot of work and needless complication. It did give him some protection and peace of mind but he still could be sued personally and if he were negligent (this guy was ethical so that was unlikely) he would still be prosecuted. He had some rentals in Cities where mine were located and I do remember him telling me on more than a few occasions that I could not do an eviction without a lawyer in that City. He was wrong. I actually knew the judges (there were only 2) because they had seen me enough and they knew me as a fair landlord. He couldn't represent himself because his company owned his property--the Court required his company to hire a lawyer. (To me, the best part is that because I have a pre-paid legal plan I have a team of lawyers backing me up anyway but I only pay ~$25 per month for their advice. They don't go to court with me but I consult with them if there is anything in the case that I have not encountered before or even if the court's forms have changed.)
Jeff Rabinowitz, over 8 years ago