How to Collect Unpaid Rent After a Tenant Moves Out

When a tenant moves out and owes rent, landlords can still seek to recover the unpaid funds from the former tenant. The process generally begins with leveraging the existing security deposit and, if it's not enough, escalating the matter to civil court. To ensure a smooth process, a landlord should first confirm the tenant has officially vacated the property, review the lease agreement for specific clauses on non-payment, and ensure all communication is well-documented.

Initial Steps: Review the Lease and Apply the Security Deposit

As soon as you realize that a tenant has moved out and owes rent, the very first step is to review the lease or rental agreement that you signed with the tenant. Check for any mention of what will happen when a tenant owes rent, and follow the agreement closely. For example, you might recall once you've read the lease that you're entitled not only to unpaid rent, but also a late fee.

Use the Security Deposit to Cover Unpaid Rent

The most immediate and straightforward step for a landlord to begin recovering unpaid rent is by applying the security deposit toward the amount owed. If the security deposit fully covers the amount owed (or comes very close), you won't need to pursue any legal action against the tenant.

It's crucial as a landlord to follow your state law when using the security deposit. Most states' laws mandate that landlords provide the former tenant with an itemized statement detailing all deductions from the security deposit, including the unpaid rent and any other permissible charges, like expenses incurred to correct damage that went beyond normal wear and tear. You must also comply with your state's specific deadlines for returning any remaining portion of the deposit or sending this statement.

For example, Colorado law requires landlords to return security deposits within one month after the tenancy ends, unless the lease states that the landlord has up to 60 days. Regardless of whether the landlord has any deposit to refund, they must provide the tenant with a written statement listing the exact reasons for the retention of any portion of the deposit. (Colo. Rev. Stat. § 38-12-103 (2025).)

Be sure to document every charge: Ensure you have thorough records of the rent owed, the dates it was due, and the total amount of the security deposit collected. This documentation is essential whether you use the deposit or proceed to court.

Sue the Tenant

If the security deposit does not fully cover the entire balance of unpaid rent plus any damage done to the rental, you might need to file a lawsuit to collect the remaining debt.

The Small Claims Court Pathway

For many residential rent disputes, the ideal venue is small claims court (or a similar civil court of limited jurisdiction). Small claims court is specifically designed for resolving monetary disputes up to a certain dollar limit, which varies by state (and sometimes by county). The process is typically simpler, faster, and more informal than general civil court, often allowing individuals to represent themselves without an attorney.

To begin the process, you'll file a complaint with the court clerk in the appropriate jurisdiction—usually where the rental property is located. The complaint formally outlines the facts of the case and the total amount of money owed, including the back rent.

After you file the complaint, you must have the tenant (as the defendant) formally served with a copy of the court papers to notify them of the lawsuit and the hearing or trial date. Failure to properly serve the defendant can lead to the case being dismissed, so be sure to follow the court's service rules carefully.

Trials for unpaid rent typically don't last more than an hour or two. At the trial, you'll have the opportunity to present the court with your evidence that the tenant hasn't paid rent. At a minimum, you'll need to prepare for the trial by pinning down a signed copy of the lease that states how much rent the tenant owed each month, and your records of nonpayment. If the tenant caused damage to the rental, be prepared to also present photos and video of the damage as well as receipts for repairs.

Quite often, tenants don't show up for the court hearing or trial. If that's the case, you'll need to ask the court for a "default judgment"—a decision entered by the court stating that you've automatically won the case because the tenant was a no-show.

What Landlords Can Sue For

A lawsuit for unpaid rent (and possibly damages to your rental) will typically be a breach of contract case, because the lease agreement is a legal contract that the tenant failed to uphold.

In addition to the unpaid rent, most states allow landlords to also sue for related costs, such as interest owed on the unpaid amount, late fees stipulated in the lease, and sometimes filing fees and court costs.

Post-Judgment Collection and Other Options

If the court issues a judgment in your favor and the former tenant still refuses to pay, the court won't automatically collect the money for you. Instead, you must take steps to enforce the judgment.

Legal collection methods available to a landlord might include:

• Wage Garnishment—Obtaining a court order to deduct money directly from the tenant's paycheck.
• Bank Levy—Obtaining a court order to seize funds from the tenant's bank account.
• Property Lien—Placing a lien on the tenant's real property, which allows you to collect the debt if the property is sold.
• Credit Reporting—You might be able to report the outstanding debt to the major credit bureaus. This action can significantly impact the former tenant's credit score, potentially providing motivation to settle the balance. Be sure to follow all legal requirements, such as the Fair Credit Reporting Act (FCRA), if you choose this route.
• Collection—If you believe it's not worth your time to pursue the former tenant's assets yourself, you might be able to turn the judgment over to a collection agency. Generally, a collection agency might agree to take on the matter for a contingency fee—typically between 20% and 50% of the amount collected.

Most of the time, if you can't collect from the tenant's paycheck or bank account, you're probably out of luck. Many of the tenant's personal possessions will be exempt from being seized to pay a court judgment. In other words, the tenant might be "judgment proof." Looking to the tenant's other assets usually isn't worth it. Even when the asset is valuable—such as a car—ordering a sale of the asset will probably net you less than what it costs to have law enforcement store and auction the asset.

For detailed information on the specific procedures, limits, and deadlines for your rental properties, you should consult your state's landlord-tenant laws, including rules on small claims court, security deposits, and rent collection.