Employing Legal Judgment Collection Practices
Being a landlord is a difficult vocation and one area which is extremely difficult is collecting past due rent from tenants that have defaulted in the rental agreement. Being a landlord is a business and the property you rent out to tenants is the conduit for a return on your investment. Unpaid rent is bad enough, but what about damage to your investment property inflicted by those same tenants that skipped out without paying the rent. Getting a judgment against the tenants is essential if you ever hope to collect a on the past due rent as will as be compensated for the damages. Difficult yes, but it can be done with diligence and commitment.
In most cases it takes months or even years to collect on your judgment but once the judgment is obtained from the courts, you have the legal right to collect on the debt owed.
It should be understood that an awarded judgment by the courts is not an order for the tenant to pay you on the spot in the courtroom, even if they could. The awarded judgment is the legal right by you as the landlord to use whatever tools or possible means available legally to collect on the debt. State laws vary from state to state so it is vital that you check local laws before beginning your judgment recovery.
Although state laws may vary, there are many common tools utilized by landlords to enforce judgment and collect for past due rent and damages. Once the judgment is recorded in the court records the landlord obtains an Order of Execution and becomes a matter of public record. The judgment also shows up on the debtor or former tenant’s credit report as a judgment against them. This mark against them on their credit report in some cases may be enough for them to approach you and work out a solution to the problem and hopefully avoid further means to collect the debt. A damaged credit report can be a powerful motivator to many and compel them to rectify the credit report by settling the debt.
Wage garnishment is also another tool available to landlords whom have been awarded judgments and a powerful motivator to compel the former tenant to settle the debt owed. For those tenants which have worked at the same place of employment for a long period of time, results may be better than expected. Odds are excellent the debtor is not going to leave a place employment they have held for years and will either begin negotiations with you or continue to let the garnishment stand until the judgment is satisfied.
However, wage garnishments may not be as effective against a debtor that has been on his job for a short period of time. Once the former tenant realizes you have obtained a garnishment, they will most likely leave the job and seek employment elsewhere leaving you to begin the search for alternative methods of collecting the judgment. Although the notice of wage garnishment does announce to the debtor in clear language you are serious about collecting the debt and are not likely to go away. The debtor will either deal with you on settling the debt or begin to realize he will be playing a cat and mouse game for the next few years. Of course once they leave the job to find another to avoid garnishment, the detective work on your part begins to find the new place of employment.
Another means of judgment enforcement it by utilizing liens against real property. If the debtor owns a car, boat or even land if they happen to own any. Once a lien is placed against the property, whenever it is sold the money from the sale comes to you up to the total amount of awarded judgment. Collecting tenant judgments can be difficult but is a process that can be utilized through legal means to collect on past due rent and compensate you for damages as a result of tenant neglect. By utilizing the power of the civil legal system, you can be successful at judgment recovery if patience and determination are employed.