Q: Is it better to go to small claims court or use a collection agency to recover unpaid rent
Tenant moved out and didn’t pay last month’s rent and damages, and refuses to pay although she originally agreed to pay at the end of the month.
A:
Deciding between small claims court and a collection agency to recover unpaid rent and damages depends on various factors including the amount owed, your personal resources, and your patience for the process. Small claims court can be a direct method where you represent yourself and argue your case. This can be more cost-effective and faster than using a collection agency, but it requires your time to prepare and present your case.
On the other hand, employing a collection agency might save you time and effort. These agencies handle the collection process for you, but they typically charge a percentage of the recovered funds. This option can be less stressful, as you're not directly involved in the collection process, but it might result in less money recovered due to their fees.
Consider the specifics of your situation, such as the total amount owed, evidence of the agreement, and your willingness to engage in the legal process. If you're looking for a more hands-on approach and feel confident presenting your case, small claims court could be the better option. However, if you prefer to avoid court and are willing to accept a portion of the owed amount, a collection agency might be more suitable. Always check the laws in your jurisdiction and consider seeking legal advice to make the most informed decision.
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