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Property Manager Takes Tenant To Court

nepoez

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I`ve recently had a tenant that ran away and left substantial damages to the townhouse. My property manager said they will take them to court to pay for the damage and rent.

Has anyone had their property manager do that for them before, and can they really do that on my behalf? I don`t live in the same province as my investments by the way.

Thanks,

Nepoez
 

brentdavies

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Yes, we did that for many years, acting as the agent for the owner.

But chances you collect your money is very low. If you get 20 cents on the dollar be happy.
 

creditinfocanada

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Well i dont know about the low percentages Brent, I did 4 files for you guys a couple of years ago and was able to collect 3 of them via enforcement. Maybe you might want to call us again, that is if you have any other RT Orders kicking around.

Can property managers go to court, well yes and well alright, is it a great idea, if they know what they are doing sure. Big companies like Boardwalk and Midwest farm out there stuff to bailiffs that will attend on their behalf. We operate as civil agents so in the end we can handle matters in court and enforce on behalf of our clients. The rental tribunals are different in each province, as are the enforcement steps to get your money back.

The problem is and Im not knocking Davies, Im saying in general, that the lack of expereince with PM`s when it comes to legal matters causes a big concern. What can be charged, whats over-inflated, documents missing, change of staff, cause headaches down the road. I had to physically close 4 files last year that we had in Provincial Court due to the fact the PM lost the out inspection and the actual lease agreement that was signed.

So the short answer, yes most PMs have the ability to attend the tribunals, I would reccommend if you using the Provincial Courts use and agent.

Lastly some advice, the quicker you move when a tenant vacates increases the probability of your collection. If you wait the percentage goes down, yes we can still enforce down the road, but with up-to-date information and action taken swiftly your more inclined for a successful return to what you have lost.


Chris Bradnam
Credit Info Canada
(780) 486-1183
 

brentdavies

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Collections from old tenants depends on their assets and employment. A typical single parent working in retail or food services will be a hard person to collect from. Garnishee of wages for someone on that low of income is difficult.

However with higher income tenants, yes you can collect, but don`t expect results next week and don`t bank on full payment.

The negative energy you spend working on collecting from an old tenant is not worth it in my view. Bad debts are just part of the real estate business. Minimize the downside, and concentrate on the up side.

Move on and spend your energy on getting the best tenant possible for your property. And the next deal.
 

PropertySolution

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QUOTE (nepoez @ May 30 2010, 12:41 AM) I`ve recently had a tenant that ran away and left substantial damages to the townhouse. My property manager said they will take them to court to pay for the damage and rent.

Has anyone had their property manager do that for them before, and can they really do that on my behalf? I don`t live in the same province as my investments by the way.

Thanks,

Nepoez


Who will be covering the costs for this action, you or the PM?


In Edmonton I do and have been the agent for the owner numerous times including filing claims, appearing and pursuing judgments.
 

nepoez

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I will be covering the costs.

QUOTE (PropertySolution @ May 31 2010, 02:22 AM) Who will be covering the costs for this action, you or the PM?


In Edmonton I do and have been the agent for the owner numerous times including filing claims, appearing and pursuing judgments.
 

Lucille

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You need to decide if the tenant has any assets or ability to pay before speding time and money going to court. Once you have a judgement then you may be able to collect if you can track the tenant down. This is can be very time consuming process. Often the cost of the court process outweighs any benefit. Good Luck!

Lucille Yates, Property Manager, Toronto
 
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