A Landlord’s Guide to Collecting Rent Post Eviction

For some landlords, completing the eviction process doesn’t always conclude the interaction with the evicted tenant. After proceeding through an entire eviction, the rent collection post-eviction process can feel overwhelming.

However, many options are available to landlords to make sure you recover everything owed to them. In this guide, we’ll review some options landlords can use to collect outstanding debt. From legal action to collection agencies to direct negotiations with the former tenant, we’ll break down the most effective strategies to help collect any back rent owed.

Understanding Your Rights and State Laws

Collecting rent post eviction means navigating your state’s landlord-tenant laws to understand what is and isn’t possible.

• Tenant rights: Tenants maintain certain rights when renting property, which don’t necessarily end after an eviction. Tenants are still entitled to certain protections under the law, meaning landlords must handle security deposits appropriately, document property damage thoroughly, and treat tenants fairly at every stage of the process.
• Landlord rights: A landlord’s rights are also very much considered post-eviction. Since landlords are entitled to rent owed, they can pursue every legal method available to collect past debts from the tenant. Even still, some of these rights come with limitations. They limit how the landlord can collect the debt or contact the tenant.
• State-specific laws: Since landlord-tenant law can vary significantly from one state to the next, it’s crucial that landlords fully understand the local rules and guidelines on how to pursue rent collection and evictions. Following local laws can mean recovering everything still owed or saying goodbye to the money forever.

In the following sections, we’ll examine some methods landlords might use to collect the rent due after the eviction process.

Keep the Security Deposit Funds

One of the main reasons landlords collect a security deposit when accepting a tenant into their units is to provide financial protection should the rental experience go south. And landlord-tenant laws codify this by expressly allowing landlords to retain funds to cover unpaid rent and certain other debts, including:

• Unpaid utility bills
• Cleaning bills
• Repairs for damage beyond normal wear and tear
• Lost rental income
• Unpaid late fees and penalties
• Cost of unpaid garage door remotes or keys

Like with all landlord-tenant laws, ensure you fully understand the rules regarding security deposits in your local area to avoid any additional complications in collecting overdue rent.

Sell Left-Behind Belongings

It’s common for tenants to leave some personal belongings behind in the unit after the eviction is finalized and they vacate. Selling abandoned property could be one way for landlords to recover lost funds.

Landlord-tenant laws often dictate how landlords handle any property left behind after an eviction. These laws sometimes require landlords to notify tenants, giving them a window to recover their possessions. Alternatively, some states allow landlords to keep some of the proceeds from the sale of left-behind property but require them to return a portion to the tenant.

Landlords should carefully review local landlord-tenant law to make sure they handle the property legally and recover what they can from selling the items.

Negotiate With the Tenant

While a recently evicted tenant may not be willing to negotiate with you, it’s worth exploring. A fruitful negotiation can save time and money over some of the more formal debt collection methods.

• Evaluate the tenant’s finances. You probably won’t know everything, but as their former landlord, you may have some insight into what they can or can’t afford to pay. This knowledge will help you determine an approach that is most likely to be successful.
• Communicate the debt clearly to the tenant. When you approach the tenant with an offer to settle, clearly outline the full amount owed, delivering the information to them in writing to establish a paper trail and avoid miscommunication.
• Propose flexible repayment options. Offering the tenant a structured repayment plan or a lower overall total could encourage the tenant to pay off the debt to avoid more significant charges arising from a formal collection process.

If this strategy doesn’t work, you can inform the tenant that you might be following up with one of the following methods to recover the debt:

File in Small Claims Court

Collecting rent post after the eviction process can sometimes mean finding yourself back in court with your former tenant. Depending on the amount of back rent owed, you may have the option to file a claim in small claims court. The limits vary by state, so check your state’s limit before filing.

Filing a suit in small claims court goes something like this:

• If you meet the criteria, gather all relevant documents, including the lease agreement, rent payment records, eviction documents, deductions from the security deposit, and any written correspondence with the tenant.
• Follow the procedures of your local court to file the claim. Complete the necessary forms and pay the filing fee.
• Serve the tenant. When delivering notice to the tenant that you’ve filed a suit against them, follow the rules of your local court.
• Attend the hearing. You will present your case on the assigned date, and a judge will consider the evidence before issuing a ruling.

Sue in Civil Court

If the debt the tenant owes is too large for small claims court, landlords could consider a civil suit for rent collection post eviction. While this process could be more complex than a small claims suit, it does provide a pathway to recover larger sums of money.

A civil court process will likely look like this:

• Hire an attorney. While this is an optional step, hiring an attorney is the best way to ensure you follow the court processes correctly, and it could increase your chances of winning the case.
• Draft and file a complaint. A civil lawsuit starts with a formal complaint that fully describes the situation. The complaint includes the amount of rent still owed and the relief you’re seeking. At this point, you’ll pay the court-required filing fee.
• Serve the defendant. The tenant will then need to be notified of the lawsuit, which obligates them to respond in some way. Lawsuits must be delivered according to local laws and guidelines.
• Wait for the tenant’s response. The tenant will have a pre-defined time to respond to the allegations, which could include filing a counterclaim or negotiating with you directly to avoid court.
• Engage in discovery and attend pre-trial hearings. As a more formal trial process than small claims court, you might need to engage in a formal discovery process, which involves gathering evidence and sharing that with the tenant and their attorney. Additionally, there could be pre-trial motions or hearings called that could influence the trial process.
• Present your case at trial. If the case proceeds to a trial, you’ll need to present your case (or your attorney will) and make arguments before a judge and jury. If both parties waive their right to a jury trial, the case will be presented in a bench trial before a judge.
• Receive and enforce the judgment. Following the trial arguments, a jury will determine the case, which, if found in your favor, could lead to further, legally enforced collection methods like filing a lien or seizing assets.

File a Lien Against Tenant Property

If your former tenant owns valuable assets, like real estate or other personal property, filing a lien could be an effective way to recoup the debt. A lien legally ties the debt to the tenant’s property, which prevents them from selling any belongings until they satisfy the debt.

• Evaluate the tenant’s assets. Before pursuing this approach, ensure the tenant has valuable possessions that would make this process worthwhile. Assets like cars and real estate are suitable.
• File the lien properly. Lien filing laws vary from state to state, so follow local laws carefully to ensure proper filing. We recommend consulting an attorney during this process.

Once a lien is in place, the tenant cannot sell or refinance the asset without first settling the debt. This creates leverage for the landlord, as tenants must pay before regaining control of their belongings.

Garnish Tenant Wages

Another potential strategy often explored after a court judgment to recover rent after the eviction process is garnishing wages. This strategy is only worth considering if the tenant is actively employed and makes enough money to satisfy the debt in a reasonable amount of time.

Let’s take a look at the process.

• Obtain a court judgment. As outlined above, this is the only way you’ll legally be allowed to pursue wage garnishment.
• File for a Writ of Garnishment. This formal process allows the tenant’s employer to withhold a portion of their wages as determined by the court based on available information.
• Serve the employer. The court will issue the writ, which must then be served to the tenant’s employer. The employer is legally required to comply and begin to deduct the wages listed in the writ.
• Receive payments. A portion of the tenant’s wages (which are usually capped up to 25% of disposable income) will be sent to you until the debt is paid in full.

In some cases, you may be able to garnish the tenant’s tax refund to cover the debt, which requires the involvement of a state or federal agency. Depending on the overall size of the rent owed and the tenant’s income, this process can take some time before the debt is fully recovered.

Contact a Debt Collection Agency

If none of the above methods work, landlords can also consider contacting a debt collection agency to collect rent post eviction. While this can be an effective alternative to the legal process, these agencies charge a percentage to recover the debt.

Once you’ve chosen a reputable agency to handle the collection, the process typically works like this:

• Provide relevant documentation. Provide the agency with the complete breakdown of what’s owed, including the lease agreement, eviction documentation, and payment history.
• Agree on a fee structure. The agency will take a portion of the collected funds for their own, ranging from 15-50% of the total.
• The agency takes over the work. Once hired, the agency will handle it from here. They’ll contact the tenant to attempt to recover the debt.

Hiring only debt collection agencies that follow the legal guidelines for recovering debt is critical. The Fair Debt Collection Practices Act governs how debt collection agencies operate, so ensure that the one you hire follows the federal guidelines. Further, many states have their own debt collection rules, so be aware of those as well.

How TurboTenant Can Help Prevent or Recover Unpaid Rent

The rent collection post-eviction process can be frustrating and time-consuming, but if you’re patient and follow this guide, there’s a chance you could get some of the unpaid rent back.

Further, free property management software like TurboTenant helps landlords keep everything in one safe and convenient place. From document storage to tenant management to maintenance tracking, TurboTenant streamlines property management workflow in so many ways that you’ll find yourself with more time than you know what to do with.

Landlords across the U.S. use TurboTenant for:

• Rent Collection: Automating rent collection can reduce the risk of late payments, helping you avoid the rent collection post-eviction process altogether.
• Lease Agreements: Leases are stored and fully tracked within the software, making them easy to reference when communicating with your tenant or to use as evidence at a court hearing.
• Financial Tracking: Rental property accounting software thoroughly tracks each tenant and unit’s complete rent payment history, allowing landlords to stay up-to-date on each tenant’s payment status easily or use this information in court.
• Tenant Screening: TurboTenant offers comprehensive tenant screening tools, making it easier to ensure that you’re filling your units with the best possible tenants.

You don’t want to have to collect outstanding debts from evicted tenants, so let TurboTenant help you stay out of that mess from the start. Sign up for a free account today and see how software can help make rental property management more effortless.