I have been trying to collect on a move out for a couple of years. Couldn't get a lawyer to move on it until recently. I cannot collect interest because there was no clause in my lease agreement. Now, there is. Here it is , let me know if it seems suitable. It may not be legal in all areas. I also added Accrued Interest in my order of collections.

Pre-Judgment and Post-Judgment Interest

Any rent, fees, utilities, damages, or other amounts due under this Lease that remain unpaid after the date they become due shall accrue pre-judgment interest at the rate of eight percent (8.0%) per annum, calculated from the date the amount became due until the date a judgment is entered or the amount is paid in full, whichever occurs first.

If Landlord obtains a judgment against Tenant for any unpaid amounts due under this Lease, the judgment shall thereafter accrue post-judgment interest at the rate provided by applicable Indiana law, unless a different rate is permitted by law and awarded by the court.

The accrual of interest shall be in addition to, and not in lieu of, any other remedies available to the Landlord under this Lease or applicable law, including the recovery of court costs, attorney's fees (if provided elsewhere in this Lease), and other damages.

Does this seem okay or do you think it would be struck out by a judge?

Each time I've purchased a troubled apartment property, the sellers treat it as a hobby instead of running a business. Around half of the tenants paid late and were still months behind. I tell there things for a reason:

I could have spent valuable time going after bad debt, the sellers assigned to me all debts by current tenants.

Or I could put the same energy doing positive things that would improve the property, get better tenants and make me More Money!

So what I'm saying, if you find yourself with extra time and wish to may x-tenants pay their debt, then read a book on debt collections and only make smart moves.

Here in my State, once you get a Judgement, anytime within the first 9 months, the tenant can contest it. But after winning the eviction case and getting a possession order-- I schedule a Sheriff lock-out. Once the tenant is out, I have the attorney CONVERT the Judgement for possession into a Money Judgement -- BUT I WAIT 10 months before I record it. So they can not appeal. Then 9 years up the road I extend that Judgement for another 10 years. SO I have 20 years to collect.

Recently, a tenant whom I evicted 18 years before was not an attorney working for the City of Los Angeles. She was at her wedding and her priest asked if anyone knew of any reason why these two should be married. I stood up and said I have something to say.

Wow, Rob, you were lucky that you found the wedding. Following the deadbeat for 18 years is stalking to some. You were even luckier that her father had his business checkbook with him. I guess some folks just don't leave home without it. The luckiest part was that the father of the bride didn't beat the crap out of you for potentially ruining one of the happiest days of his life.

Now to direct the conversation back to reality:

Lucy, I like the wording. I don't see why the judge in our area would say no, unless a deadbeat complained about it.

I like collecting the meager 8% post judgement. I have not taken anyone to court that far after the incident that it would make much difference. But a couple extra lines in the lease could help for sure. If nothing else it could be used as a bargaining chip to get rid of a bad tenant.

Lucy,

Indiana law automatically allows 8%.

We continue charging $5/day Late Fee on the unpaid balance until court.

Judges vary and do what they want. Gotta know YOUR judge!

And we follow EVERY small claims judgment. True, many fizzle but the ones that do pay make us a lot of money in interest because they dragged on for so long.

And occasionally someone wans to buy or INHERIT a house so they have to pay us off - IF their background search is done properly. Theses make pursuing the whole worth the trouble.

And it's very little trouble. Wifey just reviews the spreadsheet each month and files for Proceedings SUpplemental.

PS

Ask for interest in writing when you submit your court papers. Our old jugde would write it in the ORDER.