Rental Debt After Moving: What Landlords Can Still Legally Collect
Rental Debt After Moving: What Landlords Can Still Legally Collect
Blog Article
Moving out of the rental property - whether out of decision or because of eviction-- do you still owe money but it doesn't necessarily mean the end of your financial relationship to the tenant. Many tenants are surprised to learn that they can still be held accountable for unpaid rent and other lease obligations, even when they no longer live in the unit. Understanding the way this debt works and why it continues is essential for anyone who has to navigate the renting process.
When the tenant signs an agreement to lease the unit, it is considered to be a legally binding contract. The rent owed under the lease continues to be paid in accordance with its terms, even if the tenant is no longer living in the property before the lease ends. In most cases landlords have the option to pursue unpaid rent through formal collection efforts, including legal actions as well as collection agents.
A common situation occurs when a tenant leaves before the lease term expires. For example, if a tenant is on a 12-month lease and moves out after eight months, without negotiating an early termination agreement, the remaining four months of rent could still be due. In certain states, landlords have a legal obligation to reduce the debt of a tenant by trying to rent the property. However, the tenant who originally rented the unit is still liable for rent until the new tenant is identified or the lease naturally expires.
In the event of an eviction the rental debt could increase even more. A eviction usually follows a period of missed payments. By the time the legal process concludes the tenant could have a large amount in rent and court costs, and potentially even attorney fees. After the tenant has been removed but the landlord is able to seek to recover any outstanding amount owed.
In addition to the rent, tenants may be liable for any damages that go above normal wear and tear. If a unit requires repair or cleaning that goes beyond the normal use, those costs can add to final bill. Security deposits can in reducing the burden, but rarely will be enough, especially in the case of lease violations or serious damage.
Unpaid rental debt can impact the credit score of the tenant as well as the future opportunities for housing. When a landlord wins an order of judgment or refers this debt over to an collection agency it may appear on a tenant's credit report, making it harder to rent elsewhere or get financing.
For tenants leaving a property--whether voluntarily or due to eviction--it's vital to get an accounting in writing of the property's owner. This will help clarify any amount due and allows tenants to contest inaccurate charges if needed. Seeking legal guidance or negotiating a payment plan may be a good idea to reduce the negative long-term impact.
In summary, simply vacating the rental property will not erase financial responsibilities that are entailed by the lease. Staying informed about your rights and obligations will prevent surprises and help you solve any rental debt more efficiently.
Moving out of a rental unit—whether by choice or due to eviction— do you still owe money not necessarily mark the end of your financial relationship with the landlord. For more information please visit if you are evicted are you responsible for rent.