Guides › Landlords: selling a tenant judgment or unpaid rent
Landlords: selling a tenant judgment or unpaid rent
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Short answer: A landlord with unpaid rent has three options. You can collect it yourself, place it with a collection agency on contingency, or, once you have a money judgment, sell the judgment by assignment. Judgments sell more easily than unpaid rent. There is no public price benchmark; buyers look at the tenant's wages, bank accounts and assets.
What is your tenant judgment worth?
Free, confidential valuation. Summary data only, mutual NDA before any documents, and no obligation to sell.
Is unpaid rent different from a judgment?
Yes. Unpaid rent is a claim you would still have to prove in court. A money judgment (from small claims, or the money portion of an eviction case) is a court-confirmed debt that can be enforced with tools such as wage garnishment and bank levies, and in most states it can be assigned to someone else. Buyers strongly prefer judgments. Many will not buy unadjudicated rent claims at all.
Can a landlord sell a judgment against a former tenant?
Generally yes. Money judgments are usually assignable. Georgia lets a judgment holder transfer a judgment for value, and the transferee gets the same rights (O.C.G.A. § 9-12-21, § 9-13-34). In Pennsylvania, where many landlord-tenant cases are decided by magisterial district judges, the assignee files an assignment on the prescribed form and the judge dockets it and issues an amended notice of judgment (Pa. R.C.P.M.D.J. 401.1). Check your state on our judgment rules by state pages.
Do debt collection laws apply to back rent?
When a third party collects it, often yes. The Second Circuit held that residential back rent is a "debt" under the FDCPA (Romea v. Heiberger & Associates, 163 F.3d 111 (2d Cir. 1998); 15 U.S.C. § 1692a). A landlord collecting its own rent is generally a creditor, not a "debt collector," but an agency or judgment buyer collecting from a former residential tenant must follow the FDCPA and any state licensing rules.
How much will a buyer pay for a tenant judgment?
We found no published, verified benchmark, so we won't give a number. Online answers conflict wildly. What drives an offer:
- Can the tenant be found, and do they have income or assets? Federal law generally caps wage garnishment for ordinary debts at 25% of disposable earnings, or less in some cases (15 U.S.C. § 1673). Many states set tighter limits.
- Judgment age and how long it stays enforceable in your state.
- Amount and documentation: the lease, ledger, judgment and any payments since.
Many buyers offer contingency (a share of what they recover) instead of cash.
Should you sell the judgment or use a collection agency?
| Sell the judgment | Contingency agency | |
|---|---|---|
| Cash | Now, if a buyer will pay | Only when money is recovered |
| Ownership | Moves to the buyer | You keep it |
| Upside | None after sale | Your share of every recovery |
| Effort | Sign and record an assignment | Ongoing reporting |
More: selling vs. contingency.
What should you have ready?
- The signed lease and rent ledger.
- The judgment, with case number and court.
- The tenant's last known address, employer and bank details if known.
- A record of any security deposit applied and payments received.
What is your tenant judgment worth?
Free, confidential valuation. Summary data only, mutual NDA before any documents, and no obligation to sell.
What else do sellers ask?
Can I sell a judgment against a tenant?
Usually yes. Money judgments are generally assignable. You sign an assignment and it is recorded with the court that entered the judgment.
Can I sell unpaid rent without a judgment?
It is much harder. Most buyers want a court judgment first. Collection agencies may take unadjudicated rent on contingency.
Does the FDCPA apply to collecting back rent?
For third-party collectors, often yes: the Second Circuit held residential back rent is a consumer debt (Romea v. Heiberger, 1998). Landlords collecting their own rent are generally not debt collectors under the Act.
Will a judgment buyer pay cash for a small landlord judgment?
Sometimes, if the tenant is collectable. Many buyers offer contingency on small judgments instead. There is no verified public price benchmark.
Where should you go next?
- Can you sell a judgment? (And what it's worth)
- Judgment rules by state
- Price range estimator
- Request a free valuation
General information only, not legal, tax or accounting advice. Price figures are historical public benchmarks, not offers. Verify with counsel.