|
|
The LPA Newsletter, February 2006
Dear Fellow Landlord,
This month in The LPA Newsletter, I hope you enjoy a Special Report by real estate attorney, William Bronchick, "Collecting Money Owed by a Tenant".
We've put together some new:
Landlord Tips
the latest Tenant Excuses
Also, the latest Quotes!
Please e-mail us if you have any questions or would like to add or share any material / information. Have a great month.
John Nuzzolese
John@theLPA.com
***********************************************
LANDLORD SPECIAL REPORT:
Collecting Money Owed by a Tenantby Attorney William Bronchick, Legalwiz.com
Did you ever have to evict a tenant for non-payment of rent, then get stiffed for the bill? You may be able to collect what is owed to you, even years later.
First, you need a court-ordered money judgment. If you filed for an eviction in court, you received a judgment and order of possession. The actual name of this court order may change slightly from state to state, but it's the same thing - a document signed by a judge that permits a local sheriff or constable to forcibly remove the tenants from the property.
In most states you can also get a money judgment against the tenant, but this requires one of two things: 1) the tenant must have been personally served with the court papers or 2) the tenant must have shown up in court. If the eviction papers (the court papers, not the notice to pay rent) were posted on the door of the unit and/or mailed to the tenant, you generally do not get a money judgment from the court.
What About Security
Deposits?
If you have a
security deposit
from the tenant, you
can apply that
against anything he
owes you for back
rent or damages.
However, you still
must comply with
state law for
notifying the tenant
of your intent to
keep the deposit.
Even if you return
the security
deposit, you can
still sue the tenant
for actual rent owed
and/or damages
incurred to the
unit.
|
|
If the tenant left before the court date or you did not otherwise get a money judgment, you can always sue the tenant in your local small claims court for money owed and any damages to the property. The process is quite simple, and does not require a lawyer. You have to file the claim before the end of the statute of limitations, which generally ranges from three to six years, depending on which state you live in.
Once you have a money judgment, you can collect it against all non-exempt assets of the debtor. Certain assets, such as retirement accounts, are exempt from collection by creditors. Also, keep in mind that assets of the debtor's spouse may be attached as well in states that recognize community property (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin).
Cash in bank accounts is the easiest target. If you have a copy of a recent check from your tenant, you can file for a "levy of execution" on their bank accounts through the local sheriff (this is why it is a good practice to make copies of your tenants' checks each month to make sure you know where they are banking).
If the tenant is working, you can garnish wages, but most states limit garnishment to 25% of the wages of the debtor. Still, if they have a steady paycheck, you will get your money back, plus interest. If you get a transcript and record the judgment in county records, the tenant will not be able to buy a house in that county without paying you off. If the tenant owns other real estate in his name (not likely, but always possible), the judgment will create a lien on that property as well.
If you do not know where the tenants assets are located, you can start a debtor proceeding in court to make him appear in court and answer questions regarding his assets. Failure to comply may result in a warrant issued for the debtor's arrest. Depending on the amount of money owed and likelihood of collecting, this process may not be worth your effort. But, considering a judgment may be valid for as long as 10 years and you get interest on your money, why not make it a part of your business practice?
Read more articles by William Bronchick at Legalwiz.com.
Printer
Friendly Version of this Article
***********************************************
Landlord Tips
- With new tenants be ready to enforce late charges the first time your tenant pays late. If you set a precident of waiving your late charge, tenants will be offended when you want to enforce your policies in the future.- Bonnie K., NY
- I have been able to eliminate a few disasters by making a reason to visit the rental applicant at their curent home before signing a lease with them. I get the opportunity to view how they live. - J.N., Naples, FL
- DO NOT turn over possession (keys) to the tenant unless all funds have been paid in cash or checks have cleared. The worst thing is to have tenants in control of your property and not paying the rent when they couldn't even raise the security and rent money to move in.
John N., NY
***********************************************
Tenant Excuses
Excuse of the Day for 2/9/06:
"I'm sorry but there is something wrong with 'my check' and I didn't receive it yet. I will check to see what is wrong and get back to you........" - J Warburton, Newburgh, NY
Excuse of the Day for 2/7/06:
"I'm sorry but I was arrested last week and lost my job. Can we work something out?"What were you arrested for? Identity theft. Nice. - J Warburton, Newburgh, NY
Excuse of the Day for 2/6/06:
"Someone broke into my apartment last week and stole all my money and my jewelry. I'm sorry but your are going to have to evict me. I can't pay my rent."PS: no request to do repairs was ever made or reported until rent was due - J Warburton, Newburgh, NY
Excuse of the Day for 2/5/06:
"I'm trying to build my credit rating - so I had to pay my credit cards and my car loan first."I am looking into reporting tenants to the credit bureau. - Thomas C., CA
Excuse of the Day for 2/1/06:
"Can I skip this month? Things are tight and my boss said I can take some time off to relax."At first, I laughed because I really thought she was kidding... Nope. She's for real and so is my Urgent Late Notice and Late fee! - Ricky D., CA
Excuse of the Day for 01/25/06:
"I brought my car in for an inspection and it failed the test. I had to pay $900. to get my car fixed."The rent can not be dependant on your car repairs, I told her. She will still have to pay the rent and the late fee. I agreed to give her 7 days extra to come up with everything befor i have to start legal action. - Michael K., Newport, RI
***********************************************
Quotations...
"Do what you feel in your heart to be right - for you'll be criticized anyway. You'll be damned if you do, and damned if you don't." - Eleanor Roosevelt
"An ignorant person is one who doesn't know what you have just found out." - Will Rogers
"In the arena of human life the honours and rewards fall to those who show their good qualities." - Aristotle
"I have left orders to be awakened at any time in case of national emergency, even if I'm in a cabinet meeting." - Ronald Reagan
"I trust that everything happens for a reason, even when we're not wise enough to see it." - Oprah Winfrey
"If you keep facing the sun, the shadows fall behind you." - Jennifer Tucker
A Way of Being
- Gary Link, Attorney at Law
"How much did your last tenant problem cost you?"
- John Nuzzolese
***********************************************
America's #1 real estate expert is also an LPA Member!
The Landlord's Troubleshooter and more Real Estate Books By Robert Irwin
Robert Irwin is the bestselling author of more than 50 books on real estate. His career in the real estate industry encompasses more than three decades of experience as real estate broker, landlord, and consultant to lenders, agents, and investors.
***********************************************
Books by LPA Members
The Landlord Protection Agency is proud to recommend the following landlord books written by LPA Members, Robert Irwin, Timothy Spangler, Tony & Sandy Midea and Dan Auito. Just click on the book for more information about it.
***********************************************
LPA Membership Expiring? Take Advantage of the Renewal Prices!
How to Check your LPA Membership Expiration Date:
- Be logged in with your LPA username & password
- On the "Main Menu" (top right), click on "Your Orders" (right below your name)
- The beginning date of your membership will be listed to the left of your membership order # in this format: YYYYMMDD
NEW! Save Money with our Promotional Membership Renewal Prices!
*Your Membership Expired? No Problem!
|
|
***********************************************
***********************************************
Make money as an LPA Affiliate!
Starting 6/1/07: We're DOUBLING your referral fees so you can earn twice as much! No more 10% referral fee, it will now be 20%!
Earn a 10% commission on all
orders placed with The Landlord Protection Agency by customers that you
refer to us!
You get paid for each order placed through your specially coded internet address for The LPA site!
How many landlords do you know?
Join The LPA Affiliate
Program!
***********************************************
SPECIAL
BONUS
for New 2
-5 year LPA Members
This offer also applies to 2-5 year Membership Renewals! Check out our low renewal prices *Your Membership Expired? No Problem!
***********************************************
***********************************************
The LPA's
Free Bonus for all LPA Members.... Click for more information.
***********************************************
Interested in past LPA Newsletters? Feel free to view the
LPA Newsletter Archive
|
|
Look-up
Associations
Attorneys
Businesses
Rentals Available
Rentals Wanted
Classifieds
Tips & Advice
Realty Brokers
Tenant Histories
Other Areas
Q&A Forum
Landlord Tenant Law
Essential Forms
Free Forms
Credit Reports
About Us
Help
|