Tenant owes back rent money…
Question
How do I locate a previous tenant who owes me back rent money?
Answer
There are many ways to attempt to locate a previous tenant. An adequate discussion is well beyond the scope of this forum. Accordingly, I refer you to our Mini Training Guide titled “9 Steps to Collecting a Judgment” and to our larger related eCourse titled “Collecting Judgments,” more specifically to Lesson 15 of the eCourse. Both of these items have discussions regarding locating tenants, whether for demanding repayment or for collecting court judgments against them. I also refer you to the Mini Training Guide titled “9 Fair Debt Collection Practices Act Issues” and to Lesson 10 of the referenced eCourse which provide information that will allow you to avoid violating state and federal statutes regarding collection procedures.
In order to file a lawsuit against a person, you must know where he is so that he can be served with a complaint and summons. Once you locate the debtor you can then not only demand payment but also file a lawsuit against him. One can usually obtain a judgment for valid claims, sometimes by default when a properly served defendant does not answer the complaint or appear in court.
Having a judgment is an important tool because it increases the chances of a voluntary payment at some date in the distant future when the debtor must remove the judgment from his credit record in order to borrow money, get a job, or even rent another property. Judgments are typically good for five or more years, depending on the state, and can be renewed for one or more extensions. Also, interest accrues on unpaid judgments, the rate being significantly higher in most states than one can earn from most other investments. Finally, when the judgment is obtained in the proper state of jurisdiction (where the debt was incurred) it can be collected in any other state, although at some extra effort and expense.
Mini Training Guides and eCourses can be reached from the LandlordOnline.com member home page following logging onto the site.
If, after perusing the referenced resources, you have specific questions, feel free to post again.