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The Damages to the Property Exceeded the Amount of the Security Deposit That Was Being Held. Is the Collections Agency Guaranteed to Recoup Any Funds?

MoveZen sends the remaining balance to a professional collections agency. However, no collections agency can guarantee recovery of outstanding funds.

Audience: rental property owners who want to understand what happens when tenant debts are sent to collections, how recovery works, and why no agency can guarantee repayment.

When tenant-caused damages, unpaid rent, or cleaning costs exceed the security deposit,

Here’s why recovery isn’t guaranteed and what factors influence success.

FAQs ❓

Is recovery ever guaranteed?
No. Collections are an attempt, not a certainty.

Does MoveZen use reputable agencies?
Yes agencies with strong track records, modern systems, and legal compliance.

Does the tenant still legally owe the balance?
Yes. The debt remains valid even if payment isn’t immediate.

Will the amount show on their credit report?
Usually yes which often encourages future repayment.

Does the owner have to participate in collections?
No MoveZen and the collections agency handle everything.

Why Recovery Cannot Be Guaranteed ✔️

While collections agencies are skilled at recouping rental debts, several factors affect recoverability.

Here's why no one can promise repayment:

1. Tenants Cannot Be Forced to Pay Without Legal Judgment ⚖️

Agencies can:

  • Contact the tenant

  • Report the debt to credit bureaus

  • Offer payment plans

  • Negotiate settlements

But they cannot forcibly withdraw funds unless:

  • A lawsuit is filed

  • A judgment is awarded

  • Garnishment is legally permitted (varies by state)

Even then, some people remain judgment-proof.

2. A Debtor’s Financial Situation May Prevent Immediate Recovery 💳

Common barriers include:

  • Unemployment

  • Bankruptcy

  • No attachable wages

  • No assets

  • Income below garnishment thresholds

Collections agencies can pursue the account long-term, but recovery depends heavily on the debtor’s financial stability.

3. Debtors May Move Frequently or Avoid Communication 🚚

Some tenants:

  • Change phone numbers

  • Move across states

  • Avoid correspondence

  • Decline repayment plans

Modern agencies use skip-tracing tools, but evasion can delay or prevent recovery.

4. Some Debts Are “Slow-Pay,” Not “No-Pay” ⏳

A large number of accounts are eventually collected months or even years later, often when:

  • The tenant applies for a mortgage

  • They want to rent elsewhere

  • A background check reveals the debt

  • They consolidate outstanding obligations

Agencies continue attempts as long as the account remains active.

5. Legal and Regulatory Limits Affect Collection Efforts 📜

Fair Debt Collection Practices Act (FDCPA) rules require agencies to:

  • Avoid harassment

  • Respect opt-out requests

  • Provide required disclosures

  • Follow communication restrictions

These rules protect consumers but also limit collection tactics.

When Recovery Is More Likely ✔️

Successful repayment is more probable when:

✔ The tenant has stable income

✔ They intend to rent again (debts often follow them)

✔ Debts are clearly documented

✔ MoveZen’s itemized accounting is strong

✔ Tenant has a history of resolving obligations

✔ Damages are indisputable with photos

MoveZen ensures documentation is airtight before sending accounts to collections.

When Recovery Is Less Likely ❗

Collections are more challenging when:

  • The tenant left suddenly or abandoned the property

  • There was ongoing financial hardship

  • The tenant has no credit to protect

  • Multiple prior debts exist

  • The tenant relocates frequently

  • They file bankruptcy

These situations are unpredictable, which is why guarantees are impossible.

How the Collections Process Works (Simplified) 🧾

1. Move-Out Completed

Charges exceed the deposit.

2. MoveZen Issues Final Accounting

Legally required within 30–60 days.

3. Balance Sent to Collections

Agency opens the account and begins attempts.

4. Skip-Tracing & Credit Reporting

Debtor is located and notified.

5. Payment Requests & Negotiation

Agencies attempt to collect voluntarily.

6. Legal Recommendation (If Applicable)

Some high-value cases may warrant suit authorization.

7. Funds Recovered, If Successful

Recovered funds are remitted to MoveZen, then to the owner.

What Owners Should Know ✔️

✔ No fee is charged unless funds are recovered

✔ Recovery can take weeks, months, or years

✔ Credit reporting significantly improves repayment odds

✔ Larger balances often receive more aggressive follow-up

✔ Documentation greatly increases success rates

MoveZen supplies all necessary documentation to maximize recovery chances.

What Owners Should Not Expect ❗

  • Guaranteed repayment

  • Immediate collection

  • Full recovery of large balances

  • Direct communication with the debtor

  • Legal enforcement without suit authorization

Agencies work diligently — but within legal limits.

The Bottom Line 💬

✔ Yes — tenants still owe their full balance

✔ Yes — MoveZen will pursue it

✔ No — recovery cannot be guaranteed

✔ But — strong documentation, credit reporting, and agency follow-up greatly increase the likelihood

Many accounts are repaid eventually, even when they aren’t recovered immediately.