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Probability of Collecting Debt from Tenant (need advice!)

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SolomonY

Junior Member
What is the name of your state (only U.S. law)?

California

Hi Everyone, so happy to have found this forum. Hope you all can share some experience and advice.

Some background of my situation: I'm a landlord who has been renting to a tenant for over a little year now. Initially she had been paying rent consistently for 4-5 months then supposedly got injured on the job. As a result, she could not pay rent for some time and accumulated a debt as you can imagine. Basically she owes approx. $6-7k in unpaid rent/utilities ($7500 is the max for small claims).

She receives very limited workers comp at the moment and does receive child support. I know I made a mistake of renting to her but at the time I was desperate to rent the place out but also wanted to her her (and her 4 kids) out since I was in her price range. I'm almost certain she has no property, limited assets (car only), and not much money in her bank account.

My plan is to take her to small claims to have a judgment placed against her, I'm certain it will rule in my favor. The judgment will last 10 years with a renewal of another 10 years for a $30 fee.

Do I need to have a judgment against the tenant in order for me to hire a debt collection agency? If so, how likely will they be successful in collecting the owed debt?

I know I need to act fast. From what I've read (please correct me), it's harder to collect debt if I wait longer. As of the moment, the tenant is still living at the home but I did tell her she needs to leave since she hasn't been able to pay the most recent rent.

Any thoughts, opinions, and advice would be greatly appreciated it.

Thank you.

-Solomon
 


Zigner

Senior Member, Non-Attorney
You should have acted on this much sooner. Not because it's "easier", but because you could have cut your losses at a much more manageable point. This woman has no money right now and may never have money that you can collect from. So, now you're going to be out over $6,000, but if you would have dealt with this as a business person, you would be out around $1,000. You may want to consider hiring a professional property manager to run your business as a business if you are unable or unwilling to do so.
 

SolomonY

Junior Member
Thank you for your comment. I do realize what I should have done after the fact. I guess it was a combination of me being too busy with life, not knowing how to handle the situation, and the dilemma of kicking someone and their kids out to the streets vs for my own financial gain that allowed this to reach this point.

Back to the present, what are my options at this point (and your opinion on the best option)?

Take it as a loss?

or

Pursue legal action which will eventually lead to a debt collector.

And if I went to the route of debt collection, would the debt collector be able to collect once the defendant starts to have taxable income available (i.e. wage garnishment?)
 

Proserpina

Senior Member
Thank you for your comment. I do realize what I should have done after the fact. I guess it was a combination of me being too busy with life, not knowing how to handle the situation, and the dilemma of kicking someone and their kids out to the streets vs for my own financial gain that allowed this to reach this point.

Back to the present, what are my options at this point (and your opinion on the best option)?

Take it as a loss?

or

Pursue legal action which will eventually lead to a debt collector.

And if I went to the route of debt collection, would the debt collector be able to collect once the defendant starts to have taxable income available (i.e. wage garnishment?)

Yes.

But if she ends up on disability, you're sunk.
 

TigerD

Senior Member
Pursue legal action which will eventually lead to a debt collector.

And if I went to the route of debt collection, would the debt collector be able to collect once the defendant starts to have taxable income available (i.e. wage garnishment?)
A debt collector isn't going to be interested in this account. They will accept placement and put it on the person's credit, but they aren't investing in collecting.

Sorry, get the deadbeat out, take a judgment (in case they win the lottery), and move on. Cost of business.

DC
 

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