What happens if a tenant leaves town owing money?
When a tenant moves out, we hold their security deposit until we can perform a thorough move-out inspection. If damage has occurred or they haven’t paid rent, their security deposit may be used to pay for the repairs or lost rent. If the rent owed or cost of repairs exceeds the security deposit, we have two options: we can begin legal proceedings to collect the rent/damages owed, or we can turn the account over to a collection agency within 30 days. We cannot do both. The collection agency charges a percentage (currently 28%) of monies collected, and you will receive the balance (less our management fee if rent is recovered).
