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How to Collect Unpaid Rent After a Tenant Moves Out

By TenantCloud Team March 27, 2025

When you’re a property landlord, one of the biggest and most frustrating issues you can face is unpaid rent - particularly if the tenant in question has already vacated. It’s a common problem in the U.S., as renters are, on average, three months behind, and the task of collecting past due rent can feel more than a little overwhelming - until you formulate a plan.

The good news is that there are some effective strategies and legal steps that you can execute to recover unpaid rent. When used, they help to protect your rental property and the rental income it generates. So, whether you’re looking after a single rental unit or working for a larger property management company, it’s important to know how to collect unpaid rent after a tenant moves out.

So, come with us now as we explore the things you need to know to put together your own strategy for recouping unpaid rent.

What Are the Best Strategies for Collecting Unpaid Rent from a Former Tenant?

The moment your tenant moves out of the rental unit, the job of recovering unpaid rent becomes much more complicated. The problem is that with them no longer living on the property, you lose the leverage that occupancy provides. What this means is your approach to rent collection needs to be not just deliberate, but also well-documented and in line with the law.

Review Your Lease Agreement

Before you make any move, it’s vital that you review the written lease or rental agreement, as this will refresh your memory in terms of the original rent amount, payment plan, and schedule, as well as late fee provisions and the consequences of non-payment. Some lease agreements allow the landlord to recover legal or admin costs - something that might be critical if you’re looking to escalate the matter.

You must also make sure that any communication you have with the tenant, clearly references the terms of the lease. The more closely your actions follow the lease, the stronger your position will be should things move toward housing court or eviction proceedings.

Pro Tip: Flag key lease clauses when the tenant signs. It’ll save time later if rent issues come up.

Issue an Unpaid Rent Notice

Your first move is to issue an unpaid rent notice, which is a formal document that outlines the amount owed, along with key dates like the deadline for response. It’s also a document that sets the stage for the tenant for what’s to come.

Where do you send it if they’re not actually there? That’s a good question. Well, it should be sent to the renter’s last known address, which is typically the rental property they just moved out of. Even though they’re no longer in situ, they may have mail forwarding in place, which means it still counts as valid notice in many jurisdictions.

Pro Tip: Send the notice by certified mail with a return receipt requested. It gives you proof of delivery, which can be useful if the case ends up in court.

Apply the Security Deposit

It’s vital during occasions like these that you don’t overlook the obvious. You see, the answer to the issue could lie in the security deposit, as these funds can often be used to cover past due rent, late fees, and any tenant-caused damages. However, when applying the deposit, it’s critical that you provide an itemized statement to your former tenant.

This is just one of a number of rules contained within local and state regulations that come into play when applying the deposit. Even if it doesn’t cover the full amount owed, it can still reduce the size of what you need to collect.

Pro Tip: Always check your state’s deadline for returning the deposit and sending the itemized statement. Missing it can cost you more than the unpaid rent.

Reach Out to the Former Tenant

Communication is key in all business, and it certainly applies here. In some cases where the tenant has vacated, reaching out and having a direct, professional conversation can save you the hassle of instigating formal action. A simple phone call, email or letter could prompt a rent payment without you having to do anything else - but do remember to document letters and keep payment records.

If your tenant is open to resolution, you might want to offer a formal payment plan, which involves breaking the outstanding rent down into manageable installments. This can help both parties avoid unnecessary legal costs, and in many cases, tenants are more willing to cooperate when given a clear path forward.

Pro Tip: If you agree on a payment plan, get it in writing and have both parties sign it. Verbal agreements won’t hold up if things go sideways.

Use Rent Collection Software

If you used automated rent collection tools while the tenant was still in the property, you already have a digital paper trail of payment activity. Even after they’ve moved out, many platforms can help you track delinquent rent, send follow-up notices, and maintain accurate records.

These systems are especially useful if the situation escalates to court, as they provide timestamped documentation of missed payments and communications. If you’re considering upgrading your tools, check out our rent collection software guide for solutions that support past-due rent collection.

Pro Tip: Platforms like TenantCloud offer full payment histories and message logs, which are useful if rent issues end up in court.

Contact a Debt Collection Agency

If your former tenant stops responding altogether, it might be time to bring in outside help. A good debt collection agency will typically be experienced in recovering unpaid rent, as well as having the resources to locate and negotiate payment with hard-to-reach tenants.

Just be aware that this comes at a cost. Agencies will typically take a percentage of whatever they recover, but for property owners who lack the time or bandwidth to chase past due rent, this can be an effective route to take.

Pro Tip: Choose an agency that specializes in rental debt. They’re more likely to understand landlord-tenant laws and get better results.

Consider Wage Garnishment

If you’ve already gone through the legal process and obtained a ruling in your favor, wage garnishment may be an option for you to consider. This court-ordered process allows you to collect what you're owed directly from the tenant’s paycheck.

It's a strong enforcement tool, especially when other approaches have failed. However, it’s regulated at the state level, so it’s a good idea to talk to a lawyer before pursuing it. A successful eviction judgment may also allow you to place a lien on the tenant's property, depending on local laws.

Pro Tip: Before filing for garnishment, confirm the tenant’s employment status. That’s because if they’re unemployed or self-employed, this option may not work.

How to Prevent Unpaid Rent Issues with Tenants in the Future

After you’ve had to deal with an unpaid rent situation once, it focuses the attention on ensuring that you do what you can to avoid it again in the future. A proactive approach can save you time, money and stress, at the same time as protecting your rental property from repeat issues. As such, the following measures can prove fruitful.

Measure #1 - Screen Every Prospective Tenant Thoroughly

While it’s important to find tenants so your rental unit isn’t empty, having strict criteria for each prospective tenant is vital. You can save yourself a lot of hassle further down the line if you carry out background checks, credit reports, references and employment verification.

Of course, it stands to reason that when you take the time to find a responsible tenant with a history of on-time rent payment, you’re typically going to be far less likely to default.

Measure #2 - Use Clear Lease Agreements

While most people understand that a lease agreement or rental agreement is necessary when renting a property, it’s super important here to mention just how important it is for all agreements to be clear and outline a range of metrics, such as when the rent payment is due, what kind of late fee structure is in place and what constitutes delinquent rent. Needless to say, it’s vital that you make sure your tenant signs and receives a copy of the written lease.

Measure #3 - Enforce a Consistent Rent Collection Process

As we’ve already covered, laying things out clearly at the outset is a step that will save you a lot of trouble later on. In the same vein, when you establish and stick to a clear, professional rent collection system. This can be managed manually or via rent collection software, which automates billing, reminds tenants of due dates, and tracks payments.

Whichever way do things, consistency is King. When you enforce the same rent collection process every month (same due date, same follow-up schedule, same late fee policy), you build clear expectations with your tenants and reduce the risk of late rent or misunderstandings.

Measure #4 - Work With a Property Manager or Property Management Company

If chasing unpaid rent isn’t something you want to handle personally (or if you're managing multiple rental properties) bringing in a property manager can make all the difference. A good manager will enforce rent collection policies consistently, follow up on late payments, issue notices, and even coordinate with legal professionals if things escalate.

They also bring structure to lease enforcement, ensure documentation is properly handled, and act as a buffer between you and difficult tenants. Yes, there are property management fees involved, but if you’re constantly dealing with delinquent rent, that cost may be a smart trade-off for peace of mind.

Pro Tip: A clear lease, solid screening, and consistent follow-up are your best shot at avoiding unpaid rent. Nail those and most problems never start.

TenantCloud - Helping You to Be Proactive, Not Reactive With Rent Arrears

Properly dealing with unpaid rent takes a mix of preparation, good documentation, and clear communication. If legal action becomes necessary, whether through a housing court, a debt collection agency, or wage garnishment, you’ll have a stronger case if your lease is solid and your records are in order. Being proactive is your key to avoiding these kinds of issues.

Another way to make life easier for yourself as a landlord is to make use of TenantCloud - the feature-rich platform that can deal with many of the time-consuming jobs. Whether talking about automated rent collection, maintenance management or accounting and reporting, our software allows you to be proactive, not reactive with rent arrears and more.

To find out more about the huge range of features, take a moment to explore our website and see how TenantCloud can help. Alternatively, if you’d like to speak with our team about your needs, call 1-737-300-9331 today, and they’ll be happy to help you out.