What Happens if I Owe Back Rent?

Breaking a lease early because of the inability to make rent payments can result in owing back rent to your landlord. Signing a lease agreement protects your landlord if you decide to vacate the premises early. And with a lease agreement in hand, landlords can employ various tactics to collect back rent.

Eviction

    If you haven't already vacated the property, your landlord will send a notification alerting you to pay back rent or risk being evicted from the apartment or house. Landlords vary, and if undergoing economic hardship, your landlord may extend kindness and allow several weeks or a month to make payments. But if unable to bring the account current, your landlord will evict you from the property.

Collection Account

    Once you're evicted or you voluntarily leave the property, expect your landlord to continue his collection attempts to receive past-due rent payments. He may conduct his own collection attempts, or hire a collection agency to collect back rent. Techniques used by collection agencies may include telephone calls and letters. Collection accounts can also appear on your credit report, causing further credit damage after an eviction.

Lawsuits

    Paying your creditor or collection agency is key to avoiding a civil lawsuit. Your previous landlord may file a suit against you after several months of non-payment of back rent. Speaking with your landlord and making a payment arrangement can help prevent a lawsuit. Consequences of a lawsuit include receiving a judgment on your credit report. Judgments are derogatory items that stay on your report for seven years. It's imperative to understand that paying a judgment doesn't remove the information from your credit report.

Rental Problems

    Moving out of one rental and owing back rent can have an impact on future rental options. It's common for some landlords to run credit checks and ask for rental references. An eviction or breach of contract in your past can result in paying a higher security deposit or needing a co-signer for a new rental. And if a potential landlord contacts your previous landlord and learns that you owe back rent, the new landlord may reject your application.



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