How To Collect From Bad Tenants in Park City Property Management
Unfortunately in Park City property management you will at some point encounter a dead beat tenant. Maybe this person up and left in the middle of the lease with no warning or notice. Maybe they finished the term of the lease but left a significant amount of damage to your property. There are many scenarios in which a tenant can cause damage in excess of a security deposit and if they are unwilling to pay then the next step you should take is attempting a collection. In order for a collection to be effective there are a few steps you should take before anyone even becomes your tenant and there are steps you should take after. Let's take a look at some of these tips on how to collect from bad tenants.
1. A Good Background Check
While this is not fool proof a good background check in the application process can help you weed out people with a higher risk of property damage, breaking a lease, etc. References, employment, rental history and a credit check are all tools you can use to make an educated decision in Park City property management.
2. Bank Account Information
You should ask for bank account information on your application. This will be a very crucial piece of information should you need to attempt a collection. Once a judgment is obtained you may be able to directly withdraw money from a former tenant's bank account in order to satisfy charges you incurred that were the fault of the tenant.
3. Accurate Records
You should have a move in sheet where you and the tenant can make note of any existing damage or conditions in you Park City long term rental property. This way there is no question as to what damage a former tenant caused if your case goes to court.
4. Keep Receipts and Invoices
If it is necessary to make repairs after a tenant has left you should keep copies of all receipts. Carpet repairs, drywall patching and painting, property or carpet cleaning services, and smoke remediation are just a few if the types of repairs you may need to undertake to return a property to rentable condition. You as a Park City property management landlord don't want to pay unnecessary costs so keep track of these items for your collection efforts.
5. Utilize a Collection Agency or Attorney
The legal system can be difficult to understand and simple clerical errors on your part can cause your entire case to be thrown out. Utilizing an attorney or collection agency can be an invaluable tool in obtaining payment for damage caused by a bad tenant. These agencies typically require only a small fee to start your claim and are paid for their efforts through fees tacked on to your claim.
6. Be Patient
Claims take a long time. You do not want to be in a position where payment for these repairs is immediately necessary to your Park City property management operation. It could be years before you see any money, if at all. Realize that the process will take some time and is not always successful.
If you would like more information about collecting from bad tenants, or further information about Park City property management in general click the link below for a free consultation. You will receive valuable information specific to your property that will help you make an informed decision. You will also receive a free, no-obligation quote on our property management services. At CC Realty we specialize in making investment property ownership a trouble free experience. Please contact us today for your free consultation.
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