I know this is a popular subject, but now I have my version of the subject. The situation is my wife and I signed a 18 month lease in Jan 08', now we both have job transfers to another state. The apartment complex said that we are liable for our rent till the apartment is rerented. We were also told in person at the signing of the lease that if we decide to cancel our parking passes that it can stopped at anytime and rent will be lowered, but now we are being told that we our responcible for parking and rent now matter what. Next we were told that she has already turned us into the collection agency "to keep an eye on us because we are going to be a problem". Is it even legal to be turned into the collection agency when you have been a "model tenant" i.e. paying on time every month, no complaints from other tenants or on site manager, we just keep to ourselves for the most part. But now we are also being told that if we pay a lump sum of money that equals our remaining lease time that it will be voided with the fact that money will be returned if rented before lease is up. Do we trust them or what do we do??

I don't believe they can turn you in to collections unless you OWE them something. Check your credit report and make sure there's nothing on there.

As far as following up to see if they re-rent the place... your best bet on that is to find a friendly neighbor who doesn't mind keeping you informed when someone new moves in. I don't know that I'd rely on their honesty on this one.

They are correct though. Basically, you're on the hook until they can re-rent it. (Don't know about the parking pass... is it a separate contract?)

You can offer them a buyout, if you have the $$ to pay a lump sum. Just make sure that if they agree to anything you get it in writing.

And, do neither of your employers have a relocation compensation plan that will cover these expenses so you're not paying out of your pocket because THEY are making you move?

Hello Z:

WHEN a creditor or even IF a creditor can turn you over to a collection agency ISN'T regulated. However, if they damage your credit when you in fact, weren't in arrears, then they're liable for a defamation lawsuit. If your credit rating is pristine, they're liable BIGTIME.

Beyond that, mommy is right. You ARE liable for the rent till it's rented again... If they DID damage your credit, I'd demand they correct their error, and I'd demand they forego the balance of your rent, or you'll SUE the pants off them. I certainly wouldn't pay them the whole amount and HOPE they'll send something back. Nope.

If they really didn't turn you over to collections, (and I doubt they did - otherwise you'd be dealing with the collectors and NOT the landlord), offer them a buyout. If they accept, get it in writing. If they don't, tell them to sue you. Since they've already ruined your credit, a lawsuit won't ruin it much further...

But, I absolutely would call their bluff. It's time to play hardball. They are.

excon

First, if they want to report you to a collector to keep an eye on you there is nothing preventing them. The only thing would be they can't make any false reports.

Second, They are correct that they can't double dip. Plus, unless you are in Florida, they have to show a good faith effort to rent the unit.

Third, no you don't "trust" them. You get a contract signed that states;
a) You are paying x amount in a lump sum which covers x months at x dollars for the balance of the lease
b) that when the apartment is rented, the remaining months on the lease will be refunded to you
c) that they have to show you, in detail, what efforts they are making to rent the apartment

But even then. I still wouldn't pay a lump sum. I would counter saying, that you will pay them 2 months rent to let you out of the lease. Or you could try to sublet.

Quote:

---

Originally Posted by rockinmommy

I don't believe they can turn you in to collections unless you OWE them something. Check your credit report and make sure there's nothing on there.

As far as following up to see if they re-rent the place.....your best bet on that is to find a friendly neighbor who doesn't mind keeping you informed when someone new moves in. I don't know that I'd rely on their honesty on this one.

They are correct though. Basically, you're on the hook until they can re-rent it. (Don't know about the parking pass........is it a separate contract?)

You can offer them a buyout, if you have the $$ to pay a lump sum. Just make sure that if they agree to anything you get it in writing.

And, do neither of your employers have a relocation compensation plan that will cover these expenses so you're not paying out of your pocket because THEY are making you move?

---

Must be different from State to State - I own apartments and if someone appears to be getting ready to move in the middle of the night, it's not unusual for me to ask the collection company to sort of flag that person's name so I can stay on top of it. It's honestly a pain and who needs the extra expense but it does help if there's a dispute.

You know - you have apartments. It's about those tenants that you talk to and the hair on the back of your neck stands up.

Obviously it never goes to the credit bureau or I'd be sued for filing in anticipation - :D

As far as the parking passes - I believe a Court will decide that the lease is within the four edges of the paper and there are no side deals.

Quote:

---

Originally Posted by JudyKayTee

Must be different from State to State - I own apartments and if someone appears to be getting ready to move in the middle of the night, it's not unusual for me to ask the collection company to sort of flag that person's name so I can stay on top of it. It's honestly a pain and who needs the extra expense but it does help if there's a dispute.

---

I guess I don't understand what it is that the collection agency would be "doing" at the point you're talking about, or the OP is stating in their case. If there's no current amount owed, what is their job at that point?

I've only ever turned over judgements to collection agencies. That's really all they would take on. Maybe I need to be onto something new here!?

Quote:

---

Originally Posted by JudyKayTee

You know - you have apartments. It's about those tenants that you talk to and the hair on the back of your neck stands up.

---

Oh yeah, Judy! LOVE that feeling!! :eek:

Quote:

---

Originally Posted by rockinmommy

I guess I don't understand what it is that the collection agency would be "doing" at the point you're talking about, or the OP is stating in their case. If there's no current amount owed, what is their job at that point?

I've only ever turned over judgements to collection agencies. That's really all they would take on. Maybe I need to be onto something new here!?!



Oh yeah, Judy! LOVE that feeling!!!!:eek:

---

I don't do any collection - once they are in default the collection company takes over with the notices to pay or leave, all of that. I found unless you have a lot of units it takes just too much time on a very regular basis!

And this way they argue with the collection company, not me. In the end I think it costs less than taking the time to pursue people myself.

If the apartment complex wants to assign another company to collect their payments, they are free to do that. As long as you make those payments on time there is no issue

Quote:

---

Originally Posted by JudyKayTee

I don't do any collection - once they are in default the collection company takes over with the notices to pay or leave, all of that. I found unless you have a lot of units it takes just too much time on a very regular basis!

And this way they argue with the collection company, not me. In the end I think it costs less than taking the time to pursue people myself.

---

Quote:

---

Originally Posted by Fr_Chuck

If the apartment complex wants to assign anohter company to collect thier payments, they are free to do that. As long as you make those payments on time there is no issue

---

Hmmm, OK this is interesting to me, guys. I guess everywhere I've ever lived & owned property collection agencies were only in the business of collecting delinquent debt, and they take a pretty high % of whatever they collect (usually try to get the payee to compensate for that). I would never have thought (nor have I heard) of using them for routine collections or rental management functions. Good to know!

Quote:

---

Originally Posted by rockinmommy

Hmmm, ok this is interesting to me, guys. I guess everywhere I've ever lived & owned property collection agencies were only in the business of collecting delinquent debt, and they take a pretty high % of whatever they collect (usually try to get the payee to compensate for that). I would never have thought (nor have I heard) of using them for routine collections or rental management functions. Good to know!

---

I think it depends on how many units, how much time you have, how often you use the agency, what works for you -