As an individual homeowner, can I hire a collection agency to try to get the back rent money a tenant owes?

I don’t have a judgment because the tenants vacated the house before going to court. I’ve heard that there’s not much I can do, even the lawyer says it’s a lost cause, but there are companies that say they can help me get the rent owed. I wonder if that’s legal in New York. The ex-tenants owe nearly $15,000! They were on a 1 year lease.

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4 Responses to “As an individual homeowner, can I hire a collection agency to try to get the back rent money a tenant owes?”

sdn90036 Says:
July 3rd, 2009 at 3:31 pm
Yes, if you are owed money collection agencies can help you collect it.

Goood luck.
murigenii Says:
July 4th, 2009 at 8:04 pm
I don’t see why you still can’t go to court. So they’ve moved out. If you have proof of unpaid rent you can at least take it to small claims (course if they owe more than the statutory limit for small claims you would loose the rest of the rent). Get a judgment and then turn it over to a collection agency.
Jordan Says:
July 8th, 2009 at 6:37 am
I’m experienced in the legal collections arena. Personally if I was in your situation, I would:

1. Attempt to contact the debtors (and warn them of legal recourse) and work out a repayment plan. If they can’t come up with the money in full; offer a settlement.

2. Contact an attorney. Generally an attorney will send a pre-legal demand letter demanding payment by a specific date. If there is no reply to the letter, he will sue them in small claims court.

-OR-

You can do the job of the attorney and send them the pre-legal demand letter (templates avaliable online). If they don’t respond, go to the courthouse in the county where they reside and ask about sueing in small claims court. It will cost you about $40 or more depending on where you live and the court clerk will generally help you fill out the paperwork.

Again though don’t forget the old rule of thumb. Don’t sue if you can’t find the debtor or the debtor has no assets (duh). Why spend money when you won’t recover any?

P.S. With whatever you do; make sure to include copies of the lease they signed proofing they owe you money. You need proof (unless they have previously acknowledged it and you have it documented).
crazyjester9 Says:
July 8th, 2009 at 1:16 pm
Jordan obviously didn’t read the question, or me would have realized that 15k is far exceeding the limits of small claims court.

If a lawyer tells you it’s a lost cause, talk to another lawyer, if they tell you its a lost cause you might want to start listening to them.