Landlords that rent out their investment property will someday have to evict a tenant. The primary reason that landlords evict tenants is because they fail to pay the rent. When you evict the tenant the landlord will get a judgment against the tenant for the money that they are owed. The biggest question that landlords ask is how they can collect on the money that they are owed. Here are several methods that you can use to collect the money that a tenant owes a landlord.
If you know where your former tenant works, then you collect the money that they owe you by garnishing their wages. The process to file a garnishment is very simple. First you need to know the county where the registered agent for the tenant’s employer is located. This information can easily be found from the Secretary of State’s website. Most large companies will use a registered agent. If the registered agent is listed on the Secretary of State’s website then you need to serve the notice of the garnishment on the registered agent. If they do not use a registered agent then you need to serve the company at the address listed in their registration on the website.
If you know the tenant bank account number, you can garnish their checking account. If your tenant pays their rent with a check then you should make a copy of that check to have for future reference. This will give you the bank name and account number that you will need to know to file a garnishment on a banking account.
If you do not know where the tenant is working then you can hire a collections agency. A collection agency will be able to do a skip trace to try and find the current residence and place of employment for the former tenant. Once they are able to find the tenant then they will be responsible for placing a garnishment on the tenant. In exchange for doing this legwork to find the tenant, most collection agencies will charge a percentage of the amount that they collect. The amount that they charge will usually range from 30% to 50% of the amount collected.
If you collected the make, model and tag number of the tenant’s car when they were renting your property, you can place a lien on the car. This lien prevents them from selling the car until they satisfy your lien.