First, keep their security deposit and document the expenses you had to go through fixing up the place so you could rent it again.
Second, fix it up ASAP so you do not lose out on too much rent.
Third, once you get the apartment fixed up and rented, calculate how much they owe you. Then send them a bill to their forwarding address. Send it certified registered so you get a receipt that they got it. Demand payment.
Fourth, since they will not pay, you can turn the debt over to a collection agency. They may not be able to get the money back but it will certainly let the renters know you went the next step.
Fifth, if they gave you permission to check their credit report before renting, you can report back to the credit agencies the fact that they stiffed you the money and you are seeking collection of that debt. That will impact their credit report and they will not be able to fix it unless they pay you back and you clear the debt for them.
Sixth, consider posting their names on a "renter's watch" list. These lists vary from area to area but basically it is a posting to warn future rental agencies that the customers who are seeking to rent stiffed a previous rental agent.
Seventh, if anyone does contact you about them and wants a reference, make sure you get a release before you make comment. If you say anything negative they could come back and sue you. The release will save you that worry.
Eighth. Consider filing a lawsuit against them. If they do not respond, you automatically win and then can garnish their paychecks. If they do respond, it will cost them even more money.
Ninth. If the renter was in the military, consider sending a letter to his commander complaining about the situation and tell him if he does not help to solve the problem, you will no longer rent to military personnel. If nothing else, that will cause him problems at work. He could be charged under the UCMJ for causing harm to the good order and discipline of the service.
Tenth, For the future, consider revising your rental agreement. Make sure it says that the deposit can NOT be used as the final month's rent. Make sure it says you may use all legal means of collecting on unpaid rents and for damages. Ask for large deposits. IE: An amount of 1 month's rent as a security deposit. $250 for cleaning (non-refundable). $100 if they have a pet (non-refundable.)
And if they have more cars than garage spaces, $300 for each additional vehicle. Also stick a clause that if they allow more people to live there than named on the lease, you can seek immediate eviction. Often a man and wife with two-three kids rent a house and suddenly both of their extended families are living there. Having the car clause and the immediate eviction clause come in handy in those cases.
CALL THE POLICE
If you had a signed lease then take them to court. When you win they will have to pay all that they owe you plus your court expenses. I wouldn't let it ride.
Take pictures and take careful track of all time and expenses taken to repair and clean the property. Take them to court and get a judgement against them. Then you will be able to have their wages garnished until the debt is repaid.
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