Occasionally, but not very often, Tenant damages at move-out will exceed the Security Deposit we have on file. If you filed eviction on a Tenant, a damages hearing will be available to you to collect past due rents and other Tenant damage. If there wasn’t an eviction, but damages exceed the Security Deposit, you may choose to file a claim against the Tenant to recover your funds.
T&H Realty, by law, is required to send a detailed letter to the Tenant within 45 days of the Tenant vacating. If there are funds due, the Tenant is given 10 days to make payment. If no payment is made, you can then pursue the Tenant for damages. We have an Attorney that we highly recommend. Please call us at (317) 255-7767 for details or simply ask your Property Manager.
A couple of key questions should be answered prior to filing a claim:
1) Is the amount owed worth pursuing? A claim will generally cost around $500, which includes the filing fees and having an attorney represent you. Also keep in mind that, after a judgment is obtained, a collection company will likely keep 40% of the funds collected as their fee.
2) Is the Tenant collectible? If the Tenant currently isn’t working, for example, receiving any payment on a judgment might be difficult.
T&H Realty Collections Process:
- We will send the Tenant a 45-Day Letter detailing how much they owe. This letter instructs Tenants to pay the amount within 10 days to avoid possible collection proceedings.
- If there is no response from the Tenant after receiving the 45 Day Letter, we will send the Demand Letter. The Demand Letter informs the Tenant that this is our final demand for payment and they have 10 business days to respond. If not, we may forward the account to out attorney for a judgement or a collection agency.
- If we receive no response from the Tenant 10 business days after sending the Demand Letter, we will reach out to you recommending a couple options.