Do You Still Owe Money After Leaving a Rental Property? Legal and Financial Implications
Do You Still Owe Money After Leaving a Rental Property? Legal and Financial Implications
Blog Article
Rent that is not paid is more than just an unpaid bill -- if you are evicted are you responsible for rent with serious consequences that extend far beyond the housing situation. From potential legal action to long-lasting credit damage the act of ignoring outstanding rent could be a costly mistake. But, knowing the importance of keeping up-to-date and taking proactive steps could help in safeguarding your financial security.
Legal Consequences You Can Avoid
When tenants default on rent, landlords often begin by sending notices of late payments or reminders. If these go unaddressed this could result in legal proceedings including an eviction suit. After you've moved out, you could still be liable for non-paid rent and face a court judgment.
These judgments could lead to wage garnishments as well as frozen bank accounts or liens against properties. And the costs don't stop there - cost of court, late fee, and legal costs can add up quickly and increase the amount due.
Making the necessary steps to address issues with rent early will prevent these consequences. Open communication between you and your landlord requesting the payment plan, or seeking financial assistance are often more effective rather than waiting for the problem to get worse.
Impact on Credit and Future Housing
Rent that isn't paid can't be reported directly on your credit report -- however, it could be reported, particularly when it is the result of a collection action or an order from a court. If it's reported, it will drastically lower your credit score and remain on your credit report for up to seven years.
A bad credit score will affect more than the possibility of renting again. It may impact your ability to get credit cards, loans and even employment opportunities when financial responsibility is considered.
Being proactive helps. If you're struggling, look into getting counseling for your credit or contacting local tenant support organizations to get assistance. Even small amounts of payment or a written agreement could show good faith and safeguard your credit score.
How to Stay on Track
* Plan for Rent First Rent should be a top priority as the top expense of the month. Consider automating payments to keep from paying late fees.
* Inform your landlord early: If you foresee trouble paying a bill, inform your landlord ahead of time. Many are open to temporary solutions when they feel respected and knowledgeable.
* Document everything: Keep a written records of any agreements, payments, and conversations regarding your rent status. This protects the rights of renters and validates the effort you've made.
* Make use of resources available Local non-profits as well as emergency assistance programs and housing services often offer short-term rental assistance. Don't wait until it's late.
Final Thought
Paying outstanding rent isn't just about staying in the good graces of your landlord- it's about protecting your reputation as a financial professional as well as avoiding legal problems and helping to create a path towards stability. Addressing issues early shows responsibility and could lead to solutions you didn't even know were possible. Report this page