Property managers are better off sending eviction and collections letters out of their own offices. They should not have attorneys or debt collections agents send dunning letters prior to an eviction. Sometimes property managers are tempted to hire a lawyer or a debt collector to send collections letters to their non-paying tenants. This usually works against the property manager because the Federal Fair Debt Collection Practices Act applies to any communications between the attorney and the tenant. The property manager is pretty much free to send any communications it wants to, but when a debt collector is hired the federal statute applies. This creates problems in several ways. Once the (hired) debt collector sends a collections letter the debtor has the right to dispute the debt within 30 days of receiving it, and to require the collector to validate the debt. This may be easy or hard, but either way it keeps you from suing them for the debt for at least 30 days. If your tenant owes you money and fails to pay rent you already have the right to post a 3 day notice (in Kansas) and start the eviction procedure. You may sue for money in that procedure. If a debt collector sends a collections letter prior to that you will probably not be able to sue on the unverified debt. You might be able to sue for eviction only, but another lawsuit may be required for the debt. You have to be careful doing this. If you try to get cute with the judge and change lawyers, or try to sue on your own after the collector sends its letter, the tenant will take that letter into the courtroom and show the judge what a jerk you are, and the judge will treat you like a jerk. This is to be avoided. As a best practice, if you are a property manager and a tenant refuses to pay the rent you are not obliged to send a letter. Posting a correct 3 day notice on the door and filing a lawsuit for unlawful detainer is very available to you. Your attorney may post the notice for you without activating the Fair Debt Collection Practices Act, and your rights to proceed immediately for possession of the property and money damages are preserved. Once again, this is information only, and should not be considered legal advice. If you need legal counsel you should contact an attorney.
Posted on: Tue, 23 Sep 2014 17:01:42 +0000
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