Just wondering here, how many folks are proactive about collecting monies owed by tenants once they vacate the property?

Haven't had any owed in a long long time. The most recent eviction, I started moving as soon as legally possible and was awarded the partial month's rent he hadn't paid, which I deducted from the SD.

We spilled over into November so I deducted another 1/2 month from the SD for that (and we rented it again middle of month.)

We were left with pretty minimal damage, thank goodness, a few hundred dollars (a door, a faucet, some hauling and some cleaning.) Less than $500. Yes still a lot but could have been much worse.

I've posted here many times-- get the money your owed. Over the years we've had over 400K owed and we've collected at least 350K of it. Time is on your side. THERE is no rush the debt gets bigger and bigger each year-- especially adding 15% a year. You can renew the judgment every 6 years.

As an example lets use some numbers (real): rent- original filing is say 900.00 plus the next month since proper notice wasn't given-- or longer if you had a lease-- debt is until it is released/re rented. Lets just say $900X2= $1800 + court admin, fees another 300=2100. Damages to rental say another 600. your at 2700. add collection fee allowed 25% of debt or 625= now your at 3300.00. now add 15% interest a year-- $495.00. With 15% interest what's the rush. Let it lay for a while. We never go after them until at least one year. It's easier to find them if they think you forgot them.

Finding them-- just check the court records they'll have new dispos or legal problems-- the address is attached to the court filing. Please learn how to do this-- you can do it -- your losing a fortune not collecting.

I too go after folks. I wanted to talk strategy, but was wondering if enough folks in this crowd took people to court.

I know the first priority is to get possession and then get the money.

In my state there are 2 ways to get possession. You can get sheriff to post notice to door or have them personally serviced. You get an award for possession with BOTH methods, but only with personal service can you get a money judgement. Otherwise you have to take them to small claims court for the money judgment. Sometimes folks evade the personal service & that can delay getting possession.

What i just started doing is first filing (filing is cheap in my area)a case where I try to get personal service. If that has not occurred in a week (takes me about 3 weeks for court date) , then I file another case just using the posting method.

My question is, can I serve folks for the money judgment in the courthouse/courtroom. Has anyone had success with that method? Is it allowed?

I look forward to getting a body attachment, I have garnished wages and it is a great method.

Laura, I consider myself to be proactive in dealing with collections and have taken people to court and obtained judgements and wage garnishments.

I had grown complacent in this area of my business - convincing myself that collection wasn't worth the effort until reading these forum posts. Brad 20k's posts in particular challenged me to pursue debts owed me.

The bigger gains came by Rejecting "judgement proof" applicants at the time of screening this change improved the profitability of my business.

Tenant selection for me is a balancing act. When I look back on my 25+ years of landlording, one of my early mistakes was being tooooooo strict on tenant selection. I had a day job and felt i did not have the time for any tenant drama.

I ALWAYS held out for the 'perfect' tenant and did not have any tenant drama, but i did have 6 month vacancies. Which I know know were more costly than tenant drama.

There are 2 'skills' I want to add to my 'courthouse tools'.

At a minimum proactive level, make sure any money owed is placed on all 3 of their credit reports. A service right thru this site allows you to do so for just $12.95. (ReportTenantsDebt.com)

Pitbull AKA Big Dan has a desk full. scott PA he use to be known as Pussycat AKA The Kid-- until he Learned Learned Learned. People here can do it--.

The one or 2 things I'd like to add. Service at work is awesome-- really. Our new avenue being considered is posting in the legal newspaper for 4 consecutive weeks. Just like a foreclosure notice -- . Have seen big collectors starting to do it on 1M loans on people who are trying to avoid service.

We have also had some served who are showing up in court for say traffic citations-- process server just waits for their name to be called-- serves them right in court.

Thanks, This is good reading.

I'm not overly effected by this so I'm left in the dark when it comes to how to do this.

If anyone quickly scanned the responses, please scroll up and see the one from Jeffrey, note that one.

A couple of thoughts.

I think by not pursuing tenants landlords teach tenants it is OK to skip out on your obligations....there will be no penalty.

Laura,

You ask to share strategy.

It starts when you get mad enough, fed up with people walking over you and "taking" your money. We added up all our court cases over the past 10 years and I was blown away with how much money was owed to us! I showed the mind-choking number at Convention.

Good news! Thru the efforts of Wifey and her helper we now have a steady cash flow from past judgments in the thousand$$$ each month. More than some people make full time.

Those people were always out there and were very cooperative once we found them. We treat them with courtesy and respect when we find them. "Joe, Remember that court judgment from a few years ago? It's still accumulating interest so let's work to get it paid off before it gets any bigger."

And yes, the interest is always accumulating. One evictee makes a payment smaller than the interest that is accumulating. It is growing faster than he is paying it down. He will NEVER have it paid off at this rate.

Collections MUST start with the app and lease signing, while everyone is happy happy. My lease is clear: we require 4 Emergency Contacts per adult with their signature authorizing us to serve their contact person.

We update that sheet each year. Recently had a multi-year res skip. We had 15 contacts for her because she listed a few different people each year plus her workplace.

Check your state laws - MINE says we can add collection costs if it's written in the lease.

We file on EVERYONE! In our court, once the filing fee is paid all additional hearings are free.

We file BEFORE they move out so we can legitimately post it on their door.

We SERVE every which way but loose! Sheriff, us, regular mail, certified mail, email, text, and Facebook, work...

Everyday gets easier to find people on FB.

It's worth it to stay on them. I used to say it was not worth the effort bit I've changed to "we pursue everyone", even the $5 per month people. Equal opportunity court time!

(I still wonder if someday a tenant's rights group will stand up for the honest hardworking people and DEMAND equal treatment - LLs who let one person slide must let ALL slide!)

Act aggressively NOW! People die or become disabled or age into Social Security. We have lost several payments due to death. (no estate). That 57 year old res is now 65 and on SSI. Cannot garnish.

Some do not pay because of mechanics - the courthouse clerk closes at 5, the res gets off work at 5. Never a time to make the payment.

I also see that autodraft has helped A LOT! We often hear "Just take it out of my paycheck."

We have garnishment forms ready for them to sign.

We keep dragging them into court time after time. Some eventually realize the wages they lose each day we have a hearing.

Judges are elected. Step up and be the one who represents the local assoc and works on a professional level with "the court" to help streamline the system. "What can we do as LLs to help the court on these cases?" Little changes can make a big difference to the LL.

Biggest strategy: get mad and get started! One at a time. It adds up quickly!

BRAD