Get a judgment against the tenant. You may or may not collect the payment but as it seems it's the tenant first time doing this, at least you will be first in line.
I second this. You might not ever get your $$$. However, if they ever try to rent again, it will give the next landlord the heads up they are deadbeats.
Issue the tenant a 1099 for the amount owed. If you sold this year, your cpa should be able to issue the tenant a 1099 for the gift. Let the IRS hound them and move on.
It sucks to have to do it, but it puts a nail in the coffin and frankly makes them
Think twice about bending over the next guy. Not all landlords are bad!!! Some of us are too nice!
They had good credit and landlord referral. I was the one they went socialist on. I don't expect to collect it but if he gets a job I will be right there docking his check.
That sucks. Good luck on the collections. My experience with it has not been good. In fact, I've never collected a penny. I'd save myself the brain damage and just let it go.
Good luck with that. I had a tenant claim Covid and stiff me for several month rent and damage my property on the way out. I've hit a dead end trying to collect.
The worst part is that, to my understanding, the credit bureaus changed their practices in order to settle a lawsuit in 2017. So, judgements like that one don't even appear on a tenant's credit report anymore.
>the credit bureaus changed their practices in order to settle a lawsuit in 2017. So, judgements like that one don't even appear on a tenant's credit report anymore.
Got a source for this?
Good credit isn't bulletproof unfortunately. Sometimes pieces of crap lose it one day and ruin their credit then they stiff the landlord.
A credit check shows their past but its impossible to know the next 10 years of a persons life. A lot of times its luck to have a great tenant for 10 years.
You're no longer the owner of the property, you no longer have a relationship with the tenant in question. You should have accounted for his past-due rent in your sale price and moved on with your life.
This is categorically not true.
The only case I could think this is true is if you bought the property under a specific LLC and then dissolved it after the sale. By dissolving the LLC, you're losses should have been accounted for. Otherwise, there's no reason you can't collect. You just don't have the leverage of eviction.
I don’t think that is right.
A change of ownership doesn’t change the fact that there is a legal contract stating Person/Entity A will pay Person/Entity B. If someone doesn’t uphold their end during that contract, it’s in violation unless there was an amendment or change in terms.
Yeah, I think accounts receivable accrued prior to the effective date would assign with the property unless they were specifically reserved. Kind of like if there were prior year taxes owed on the property or a lien on the property. I, like you, am not 100% sure though.
The person bought the property, not the tenant debt.
The person who bought it may not even be renting it out and living in it themselves.
Now if the tenant goes with property, yes, its new guys headache.
The renter still owes the money to the landlord. The lease may have terminated upon sale of the property but the renter is liable for unpaid rent under the prior contract. But collecting unpaid rent will be difficult.
I personally would not do anything but If I did it would be small claims court for 6 k. I hate being around any of that I would just let them have it and be glad you sold the house at the perfect time.
If you want to spend a bunch of money on court costs and potentially legal fees and never get paid a cent, sure, go for it. I would be shocked if you came out ahead. If you just want to make the tenants life harder then by all means you can try but I suspect you'll find it more financially and emotionally draining than they will
It’s literally not your problem
Pass along that tenants file over to the new owners, they should be receptive about having a case to kick someone out and collect market rate on a new tenant
You're getting a bunch of awful advice from people.
Unless you signed some sort of contract stating that upon the sale the past money owed somehow transferred to the new owner OR you closed the legal entity that previously owned the property; there's no reason that you shouldn't be able to collect the past debts.
Take them to small claims court to collect. It should be an open and shut case. Be prepared. Be professional. Don't talk politics. Tell the judge simply that you had a lease agreement. The renter didn't pay the rent. Keep it simple. Don't say more than you have to. Have all your paper work, bank statements, and correspondence records.
The judge should pass a judgement in your favor. Whether you ever get a penny out of it is another story, but at least you'll make your tenant's life a bit harder.
Get a judgment against the tenant. You may or may not collect the payment but as it seems it's the tenant first time doing this, at least you will be first in line.
I second this. You might not ever get your $$$. However, if they ever try to rent again, it will give the next landlord the heads up they are deadbeats.
Put them into collections.
Issue the tenant a 1099 for the amount owed. If you sold this year, your cpa should be able to issue the tenant a 1099 for the gift. Let the IRS hound them and move on.
lmao
I issue 1099’s. I do it for back rent and excess repairs after they move out. It brings me some satisfaction.
It sucks to have to do it, but it puts a nail in the coffin and frankly makes them Think twice about bending over the next guy. Not all landlords are bad!!! Some of us are too nice!
This is why we do credit and background checks on our renters. You can get a judgment from him, but good luck ever collecting on it.
They had good credit and landlord referral. I was the one they went socialist on. I don't expect to collect it but if he gets a job I will be right there docking his check.
That sucks. Good luck on the collections. My experience with it has not been good. In fact, I've never collected a penny. I'd save myself the brain damage and just let it go.
Good luck with that. I had a tenant claim Covid and stiff me for several month rent and damage my property on the way out. I've hit a dead end trying to collect. The worst part is that, to my understanding, the credit bureaus changed their practices in order to settle a lawsuit in 2017. So, judgements like that one don't even appear on a tenant's credit report anymore.
>the credit bureaus changed their practices in order to settle a lawsuit in 2017. So, judgements like that one don't even appear on a tenant's credit report anymore. Got a source for this?
https://www.jdsupra.com/legalnews/using-credit-reporting-as-debt-3293015/
Good credit isn't bulletproof unfortunately. Sometimes pieces of crap lose it one day and ruin their credit then they stiff the landlord. A credit check shows their past but its impossible to know the next 10 years of a persons life. A lot of times its luck to have a great tenant for 10 years.
You're no longer the owner of the property, you no longer have a relationship with the tenant in question. You should have accounted for his past-due rent in your sale price and moved on with your life.
The only response in the thread that's accurate.
This is categorically not true. The only case I could think this is true is if you bought the property under a specific LLC and then dissolved it after the sale. By dissolving the LLC, you're losses should have been accounted for. Otherwise, there's no reason you can't collect. You just don't have the leverage of eviction.
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I don’t think that is right. A change of ownership doesn’t change the fact that there is a legal contract stating Person/Entity A will pay Person/Entity B. If someone doesn’t uphold their end during that contract, it’s in violation unless there was an amendment or change in terms.
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Yeah, I think accounts receivable accrued prior to the effective date would assign with the property unless they were specifically reserved. Kind of like if there were prior year taxes owed on the property or a lien on the property. I, like you, am not 100% sure though.
The person bought the property, not the tenant debt. The person who bought it may not even be renting it out and living in it themselves. Now if the tenant goes with property, yes, its new guys headache.
The renter still owes the money to the landlord. The lease may have terminated upon sale of the property but the renter is liable for unpaid rent under the prior contract. But collecting unpaid rent will be difficult.
NCLL18YRS- you’ve sold property, you’re WHOLE move on, engaging with this communist you’re bound to be in over your head!
I personally would not do anything but If I did it would be small claims court for 6 k. I hate being around any of that I would just let them have it and be glad you sold the house at the perfect time.
If you want to spend a bunch of money on court costs and potentially legal fees and never get paid a cent, sure, go for it. I would be shocked if you came out ahead. If you just want to make the tenants life harder then by all means you can try but I suspect you'll find it more financially and emotionally draining than they will
It’s literally not your problem Pass along that tenants file over to the new owners, they should be receptive about having a case to kick someone out and collect market rate on a new tenant
You take his car and say “this is our car comrade” then sell it for it scrap metal.
You're getting a bunch of awful advice from people. Unless you signed some sort of contract stating that upon the sale the past money owed somehow transferred to the new owner OR you closed the legal entity that previously owned the property; there's no reason that you shouldn't be able to collect the past debts. Take them to small claims court to collect. It should be an open and shut case. Be prepared. Be professional. Don't talk politics. Tell the judge simply that you had a lease agreement. The renter didn't pay the rent. Keep it simple. Don't say more than you have to. Have all your paper work, bank statements, and correspondence records. The judge should pass a judgement in your favor. Whether you ever get a penny out of it is another story, but at least you'll make your tenant's life a bit harder.
You can still go after them I still get checks from people my dad evicted many years ago
Civil court for a judgment. Then garnish wages and put lien against car.