Collecting Rent After a Tenant Moves Out (Q&A)

 

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Question: Hey Cameron I had a tenant get a job suddenly in another city and had to move. He put in proper notice and left the house in great condition. The only problem is that he got behind on rent after losing his job shortly after moving in. All in all he was only behind about half a months rent. After moving out we agreed he would pay $200 a month until he got caught up; he made the first payment and then nothing. I can't reach him by phone or email. I have no deposit left to draw from so my question now is, what are my options? Do I go the collection agency route, just chalk it up to experience, or is there another way? Help is much appreciated.

Answer: Hi Paul, it really depends on how much time and effort you want to put into this.  Consider small claims court. The collection agency route is also an option. If you decide to do it, go with an agency that specializes in tenant debt and has contingency based fees, but just so you know, the rental industry is statistically one of the lowest recovery rates in the collection business from what I hear. So with that being said, I think that you should not realize that there is a good possibility that you won't ever see that money. Even with a collection agency. But at least putting this on his credit might make you feel a little better. I have seen landlords get the judgment and wait hoping the tenant eventually wants to buy a house and needs to clean up their credit. That's when you get paid in full with interest. They say the few times they have collected made it worth learning the process and doing it.

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This is not legal advice. Please contact an attorney for professional legal advice.