If my 2 subtenants owe me money, what is the best way to get itback?
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If my 2 subtenants owe me money, what is the best way to get itback?
I’m owed money quite a bit in unpaid rent/utilities/intentional damages. I’m the only name as far as signing the actual lease. They are authorized to live here and pay me directly. There are damages to carpet/walls/doors, some from neglect, some intentional(punching holes). How can I handle this? Is it possible to hold collateral?
Asked on September 23, 2010 under Real Estate Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
You could only hold collateral if there's an agreement--essentially, a security agreement--that certain belongings or assets are collateral for a debt. Otherwise, without such an agreement, it would be a form of theft to hold someone else's property. Unfortunately, except to the extent you have a security deposit(s) from these tenants, to which you could look for payment of certain amounts owed (e.g. the cost of repairs), you only option may be to sue the tenants for unpaid sums pursuant to whatever sublease (written or oral) you have with them. If they are violating their sublease, you could also look to evict them, such as for nonpayment of rent. So one way or another, unless you have that security agreement, you are very likely going to court to get either the money owed or possession back.
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