State Specific Question About: MISSOURI (MO)

Rule #1, check to see if your x-tenant still has a good paying job. If not, most live from paycheck to paycheck with little to no savings with a $10,000 credit card debt balance. So if you were able to sue them and win a judgement, what is the likelihood you will be able to collect?

Instead of chasing after "bad debt", I concentrate my efforts on taking car of my properties and making other investments.

By no means am I saying you shouldn't get a judgement and then have Mr. Landlord debt collectors chase after them....

I had a tenant agree to pay the ELT, then decide not to make the payments. I pursued in small claims and obtained a judgment. The tenant is now making payments to satisfy the judgment and avoid a wage garnishment. I go to court for everyone that leaves owing me money and pursue collections on all the judgments.

Rule number 1 should be no one lives for free.

Always pursue debt even if you think its BAD DEBT. There's no such thing as bad debt-- bad collection policies yes. As a LL you need this skill.

You need to LEARN how to collect your own money (judgment) I can only tell you whats happening collection wise in GA and each of course each state is different. EXAMPLE

Tenant owes 2500.00 rent and damages you have 7 years to collect. Collection fee is 25% of debt. Debt collects 15% interest per annum. Should the 7 years run out you can refile to extend. We don't even go after them until after the first year. So it's 25% tacked on to 2500 and don't forget the interest of 15% and add court costs. This turned 450K into 350K for us SO far.

So the question now is WHY wouldn't you go after them? Not should I? Its a steady money stream. More a pyramid. you keep adding to the base of the pyramid.

But learn yourself-- because no one goes after money owned like the one it's owed to. GA no matter if LLC or FLP or sol proprietor.

CathyR,

LLC: gotta know YOUR judge. Get LOCAL info from expereienced LLs.

MY judge goes on what is printed on the lease. Might ask about that.

Like Kyle said, Indiana lets the LL of a LLC represent up to a maximum without an atty. Might ask about limits.

When they agree to such a plan we have them sign a Promissory Note With Payment Plan. If they do not pay it is a simple court hearing to get a judgment on the note. A verbal he said/she said can easily be challenged or disallowed by a judge.

Or mark what they paid as the ELT and they still owe RENT.

(we do all our bookkeeping with a simple ledger: OWE, PAID, BALANCE. Lease says unpaid balance is considered unpaid rent.

ZERO TOLERANCE on late payments and that includes payment plans. Give a 3 day notice then file in court.

The MOMENT we get any hassle we simply file. Let them argue with the judge.

We file on EVERY outstanding debt even if they don't look collectible. The ones who DO pay cover all the headache of the ones who have not paid YET. We add court fees and interest for the time it is unpaid.

BRAD

BRAD your last paragraph should be etched in all LL's brains. The amount of income LL's are losing is tremendous.

We did a study for just our county and it was millions a month lost in rent to LL's who "just let them go". It's mind boggling.

Fellow LL's with good paperwork and contract it's an income stream for years. You start with 5 in collection for 5 years then next year add 7 to those 5 (12) then year 3 add 10 to the 7 & 5 (22) -- all at 12 to 15% interest. Next year another 10.

Stop saying to yourselves-- OH! it's not that much? Use your real numbers when filing a claim.