Real Estate Investing Articles

Did you ever have to eject a tenant for non-payment of rent, and then get stiffed for the bill? You might be able to gather what is owed to you, even years later.

First, you require a court-ordered money judgment. If you filed for an expulsion in court, you received a judgment and order of possession. The real name of this court order might modify slightly from state to state, but it's the same thing - a document signed by a judge that allows a local sheriff or constable to compulsorily remove the tenants from the property.

In most states you could also get a money judgment against the tenant, but this requires one of two things:

1) The tenant should have been personally served with the court papers
2) The tenant should 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 usually do not get a money judgment from the court.

If you have a safety deposit from the tenant, you could apply that against anything he owes you for back rent or damages. However, you still should comply with state law for notifying the tenant of your aim to keep the deposit. Even if you return the security deposit, you could still charge the tenant for actual rent payable and/or damages incurred to the unit.

If the tenant left before the court date or you did not otherwise obtain money judgment, you could always sue the tenant in your local small claims court for money payable and any damages to the property. The process is quite easy, and does not require a lawyer. You have to file the claim before the end of the decree of limitations, which usually ranges from three to six years, depending on which state you live in.

Once you have a money judgment, you could collect it against all non–exempt assets of the debtor. Certain assets, such as retirement accounts, are excused from collection by creditors. Also, keep in mind that assets of the debtor's spouse might be attached as well in states that recognize community property (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin).