Encino – Property Management
ENCINO PROPERTY MANAGEMENT
Granada Hills Property Management
Van Nuys Property Management
What to do when a tenant moves out owing more than the security deposit:
Obtain A Judgment
If you have a current address for the tenant, either a forwarding address or the address of an employer, you are able to serve process. Obtaining a judgment in small claims court is the most effective way to collect the outstanding debt. Once the judgment is issued, the landlord can garnish wages, bank accounts and state income taxes, place liens on real property, and/or seize personal property. The judgment becomes a public record and is recorded by the consumer credit bureaus so any time a credit report is obtained the outstanding debt will be noted. This may make it difficult for the former tenant to obtain rental housing, as most landlords would not rent to a potential tenant that has an outstanding balance with another landlord.
It is generally inexpensive to file a small claims case , the court costs are added to the outstanding balance, however, it does take time to prepare the case and appear in court.
Collection Agency
If you do not have a current address and are unable to obtain it on your own, but you do have other contact information, a landlord can hire a collection agency to pursue the outstanding debt. Depending on the agency, expect to pay about 25%-33% of the amount collected. If they Collection Agency also reports the outstanding debt to all three Consumer Reporting Agencies, you may pay as much as 50% of any amounts collected.
This costs nothing upfront and requires only the time necessary to find the agency and complete/submit the paperwork.
Posted by Alex Delauney
