How To Take Your Tenants To Court If and When They Screw You Over
This AM, one of my new managers (from the group home that generates $10,000 per month with bunk beds – see video below) texted me to let me know that one of the tenants had disputed the rental agreement and credit card charge.
He is a new manager, so I told him to start documenting everything. When you do so, it gives you an upper hand to go after them later down the line.
An example of this is the image above of a judgment I received yesterday in the amount of $6,833.39 against a truly HORRIBLE tenant.
Most of the time we don’t bother with this, but sometimes if the tenant has caused property destruction etc – it is worth doing!
Why?
Because later down the line, they may want to pay it to get it off their credit!
Also, b/c it would not be fair for another property manager to deal with a HORRIBLE tenant that you failed to go after because you either did not know how or were too lazy….
These judgments compound at 5% annually (unless specified differently in your agreement) and can add up over time.
This little judgment turns into $11,000 in a little less than 10 years!
In a nutshell, here is the step-by-step process for obtaining judgments:
1. Document everything
2. Obtain copies of receipts, photos of the damage, bids and checks written to the handyman that does the repair work from the damage caused by the tenant
3. Sue them for the amount due! (it will cost about $200)
4. Bring all your evidence to trial. You have the moral highground and will win if you have everything documents.
5. File an abstract of judgement with the courts ($5 cost)
Then, sit back and wait! Not all of these will turn into money…but some will!
In fact, I have had more than my fair share call me after 10 or 15 years and THANK ME for being tough on them….I vividly remember one guy apologizing for being a “Young, dumb, punk” as he told me and thanked me for letting him better understand the word “responsibility”.
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