[QUOTE=billy ross;539732]Bad idea. Judgments for non-payment of rent are worth at most pennies on the dollar. I've gotten hundreds of thousands of dollars of judgments against deadbeat tenants over the years and I don't think I've ever collected a single dime on them. It's just a mechanism to get possession of the unit back. I have a friend who has been a landlord for decades and he told me he'd sell all of his judgments for a cup of coffee. There's a business model there, I think. I'd love to collect something on my jugments, but when a person has no assets the best that you can do is to garnish their wages.
In addition, PGW's recent history is illustrative. When you're incompetent at collecting what is owed to you - as PGW used to be and Philadelphia's Department of Revenue still is now - you've got to be careful about coming down too hard on deadbeats lest you catch innocent parties in your net. Essentially, you've got to expect growing pains as you implement your newly strict regime. The Department of Revenue really is screwed up, and they make up all kinds of stuff that you supposedly owe them but in reality they just screwed it up and are confused. For instance, according to my accountant, he sent a check in for $3k, but they supposedly credited it to the wrong tax year, and it's been a real mess unwinding this. They had a $3k credit for future taxes and a delinquent balance of $3k plus interest and penalties. The latest story is that they finally credited the $3k to the appropriate tax year (2011, I think) but now they still want interest and penalties on a check that was paid in a timely fashion. When dealing with the Revenue Department, things need to be not only foolproof, but they need to be idiotproof too. Until they have some competence in that department, it'll be difficult to have draconian punishments without inviting lawsuits and political heat, as the gas company found out. Eventually protocols are put into place to protect the innocent, but it takes time and pain. The electric company has always run a tight ship. Now the gas company is running a tight ship. The water department, too, is trying to drag the water revenue bureau into competence, but it's like dragging a mule. As we know, the property tax collection system is still almost hopeless, even at this late date.[/QUOTE
I agree with the above. I've been slightly luckier with judgements. I collected a big chunk of one when a former tenant tried to buy a house. Collected a chunk of one in NJ when a former tenant declared bankruptcy (he had some assets, which were divied up among the creditors).




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