Minnesota Landlord Lawyer - Collecting Unpaid Rent

 

How Do I Collect Unpaid Rent?

While most Minnesota landlords spend considerable time and effort finding responsible tenants, it is inevitable that a landlord will eventually run into a tenant who falls behind on payment. Whether these late payments are due to a good reason or not, every landlord needs to understand what they need to do to collect rent. Missing rent often may mean that a landlord may struggle to pay the property’s mortgage, or may be unable to pay for repairing the unit. Like any business owner, landlords must know how best to collect payment for the service that they are providing. This blog discusses several options that Minnesota landlords have, and also several pitfalls that they should avoid.

Provide Tenant With Notice

It is almost always advisable to provide the tenant with notice that they are behind on rent. Some Minnesota cities, such as Minneapolis, require eviction notices be provided to tenants before any eviction or other action is brought. Many other cities do not require this, but it is still usually a good idea - especially if the tenant has paid on time in the past.

While Minnesota landlord lawyers often provide notices on their letterhead or in particular formats, landlords do not need to follow many specific conventions in providing such notice (with a few major exceptions). The goal of the notice is to get paid, not go to court - and the notice should reflect this. A late-rent notice should provide the tenant with a breakdown of how much is owed, when rent was due, and what the landlord’s next steps will be if they are not paid.

Offer Payment Plans or Flexible Payment Schedule

While this is never ideal for a landlord, a temporary payment plan may mean that a landlord get paid some, rather than not at all. Particularly with otherwise good tenants, it is usually advisable for a landlord to be flexible on payments, at least on a short-term basis. While offering payment plans can be a bad idea for tenants who routinely take advantage of a landlord’s good graces, a relatively short payment plan can help some typically good tenants get back on track. It usually does not make sense to immediately evict an otherwise good tenant who is struggling for the first time to pay rent (although in some special cases this can make sense). However, landlords should be wary in offering a payment plan to a tenant who is habitually late on rent, as this can result in simply lengthening a problematic situation.

Eviction

If the aforementioned remedies do not work or are not applicable, it usually is time for a landlord to consider evicting their tenant. It is important for Minnesota landlords to know that under no circumstances may they use “self-help” or evict the tenant on their own. To remove a non-paying tenant, a landlord must file appropriate documents in court, and after a hearing the judge will decide whether to issue an eviction order or “writ of recovery.” Only the sheriff can remove tenants, and they can only do so if there is a writ of recovery signed by a judge.

Landlords who ignore the formal eviction process and take matters into their own hands can face severe financial, or even criminal, repercussions. However, the legal eviction process is not necessarily simple, as Minnesota law provides an abundance of defenses for tenants. If a landlord is considering bringing an eviction case against a tenant, it is highly advisable to speak with an experienced Minnesota eviction attorney.

Collecting Late Rent

While evicting a tenant allows the landlord to remove a troublesome tenant and re-rent the property to another tenant, it does not help the landlord recover missing rent. Depending on how far behind rent is, the landlord may sue the tenant for the money in small claims court or Minnesota district court. Again, it is often wise to consult with an attorney before proceeding in this manner. Once a landlord shows the court that the tenant owes money, the court will issue a judgment against the tenant. It is then up to the landlord to collect the judgment against the tenant, which is most commonly done by garnishing the tenant’s wages or levying their bank accounts. While collecting a judgment is not terribly difficult, it is usually best to evict a non-paying tenant as soon as possible to lessen the amount that must be collected later on.

In general, there are many manners by which a landlord can collect rent from a non-paying tenant. Some of these methods are straightforward and should be done by the landlord, while others often require the assistance of an experienced landlord lawyer. If you have a tenant who is behind on rent, or are involved in an eviction matter, call the landlord attorneys at RAM Law PLLC or submit our convenient online form to set up your free consultation.