Thankfully, the vast majority of landlords never have to deal with a “deadbeat tenant.” Most renters pay on time, take care of their home, and fulfill their lease terms. At Ole Bay Management, Inc., our extensive tenant-screening process ensures that problem tenants are the exception, not the rule. But no matter how thorough the screening, it’s impossible to completely eliminate risk.
So what happens when a tenant stops paying rent, abandons the property, or is evicted while still owing money? Unfortunately, unpaid rent and damages can add up quickly. That’s where professional property management in Mobile and Baldwin County makes all the difference—especially when it comes to recovering your money legally through tools such as wage garnishment, bank account levies, and credit bureau reporting.
This guide explains how wage garnishment works, what your options are for collecting unpaid rent, and why professional management is the best protection for property owners in South Alabama.
Step One: Prevent Problems Before They Start
At Ole Bay Management, we believe that prevention is the best protection. That starts with rigorous tenant screening—including credit checks, employment verification, rental history, and background checks. Our screening process dramatically reduces the risk of default or eviction.
However, life events can still happen—job loss, divorce, health emergencies—and even a previously reliable tenant may fall behind. When that happens, having clear policies and a professional property management team ensures you’re protected legally and financially.
The Importance of a Full Security Deposit
Before we even discuss wage garnishment or debt recovery, it’s critical to understand the first line of defense: the security deposit.
At Ole Bay Management, Inc., we never rent to anyone who cannot pay a full month’s rent as a security deposit upfront. This is a strict policy with no exceptions. Here’s why:
1. Partial Deposits Create Problem Tenants
A tenant who cannot pay both first month’s rent and a full security deposit is a financial risk from the start. Experience shows that tenants who move in under those conditions often pay late, skip payments, or end up facing eviction within a few months.
2. You Can’t Collect a Security Deposit Later
Some landlords (and even inexperienced property managers) allow tenants to pay a security deposit in installments. Unfortunately, Alabama judges typically do not award unpaid security-deposit installments in eviction judgments. That means if a tenant stops paying before completing those installments, you have no deposit funds to cover unpaid rent or damages—and you won’t be able to collect it after the fact.
3. Security Deposits Provide Immediate Protection
With a full deposit collected upfront, there’s at least some financial cushion to cover unpaid rent or property damage. Even when eviction becomes necessary, the deposit can often offset part of the financial loss.
Lesson: Never let anyone move into your property without a full security deposit. If another manager tells you otherwise, they’re either inexperienced or prioritizing a quick leasing fee over your long-term protection.
When Eviction Becomes Necessary
Even with strong screening and a proper deposit, evictions can still occur. Maybe a tenant loses their job, decides to move out early, or simply stops communicating. In those cases, Ole Bay Management takes swift and professional action to protect your interests.
Once a tenant is legally removed or abandons the property, and the court has issued a monetary judgment for unpaid rent or damages, we can pursue collection through several legal channels—including wage garnishment, bank levies, and credit reporting.
Wage Garnishment: The Most Effective Tool for Collecting Unpaid Rent
How Wage Garnishment Works
After a court judgment is entered against the tenant, Ole Bay Management can file a Motion for Continuing Wage Garnishment. This motion authorizes the court to notify the tenant’s employer that a portion of their wages must be withheld and sent directly to the court.
Here’s how the process typically works:
Court Issues the Order – Once we have a judgment, the court authorizes a wage-garnishment order.
Sheriff or Process Server Delivers the Order – The tenant’s employer is legally required to comply.
Employer Withholds Wages – By law, up to 25% of the tenant’s after-tax income may be withheld from each paycheck.
Court Holds the Funds Temporarily – The court retains the money for about 15 days in case the tenant files a challenge or bankruptcy.
Funds Released (“Condemned”) – After the waiting period, the court releases the funds to the landlord (or property management company) to satisfy the judgment.
If the full amount isn’t recovered within six months, a new garnishment order can be filed until the debt is paid in full.
Advantages of Wage Garnishment
High Recovery Rate: As long as the tenant is employed, this method is reliable.
Court-Backed Enforcement: Employers must comply or risk legal penalties.
Consistent Payments: Withholdings continue automatically until the balance is cleared.
Limitations
Wage garnishment only works if the tenant has a verifiable job. If they’re unemployed or self-employed, this option won’t be viable. Additionally, income from sources like Social Security or child support is protected and cannot be garnished under federal law.
Bank Account Levy: A Secondary Option
When wage garnishment isn’t possible—perhaps because the tenant is between jobs or self-employed—a bank account levy can be another effective option.
If we know the tenant’s banking information, we can file a request for the court to issue a levy against their account. The process is similar to wage garnishment:
The Sheriff or process server delivers the levy to the bank.
The bank freezes the tenant’s account.
Funds are transferred to the court.
After a holding period, the landlord can apply to have the funds released (“condemned”) to satisfy the judgment.
If the tenant doesn’t have sufficient funds, the bank will send whatever balance is available. While we can re-file levies in the future, most tenants close or move accounts after the first levy, making repeat filings difficult.
Credit Bureau Reporting: Long-Term Leverage
Even when a tenant disappears or cannot pay immediately, Ole Bay Management ensures there are long-term consequences for unpaid rent. We report delinquent accounts to all three major credit bureaus—Equifax, Experian, and TransUnion.
When the unpaid balance appears on the tenant’s credit report, it significantly lowers their score and alerts future landlords or lenders of the unpaid debt. This can make it difficult for them to:
Rent another property
Lease or finance a vehicle
Secure a mortgage
Obtain personal loans or credit cards
In many cases, tenants return months or even years later, eager to pay off their old debt just to have the negative mark removed. We’ve seen multiple former tenants reach back out to us once they realize their unpaid rent is blocking their ability to move forward financially.
Seizing Personal Property
While less common, it’s also possible to seize a tenant’s personal property—such as a car—to satisfy a judgment. This process is more complex and usually requires attorney involvement, but it can be an option in high-value cases.
However, this method is generally a last resort, since legal and logistical costs can outweigh the recovery amount. Ole Bay Management helps landlords evaluate whether such action makes sense before proceeding.
Complications and Special Circumstances
Debt collection can be complex, and certain situations may complicate recovery efforts:
Bankruptcy: If a tenant files for bankruptcy, collections may be temporarily halted.
Protected Income: Social Security, child support, and some retirement benefits cannot be garnished.
Job Changes: Some tenants quit or change jobs once wage garnishment begins, forcing re-filing and delays.
Out-of-State Moves: Enforcement may require working with courts in the tenant’s new state.
In these situations, Ole Bay Management partners with specialized collections law firms to pursue recovery. While these firms typically charge a contingency fee, recovering even 60% of the owed amount is far better than losing it entirely.
Why You Should Never Go It Alone
Managing rent collections, court filings, and garnishment procedures on your own can be overwhelming. Property owners who try to handle evictions and collections without professional help often encounter:
Missed filing deadlines
Incorrect court documentation
Incomplete tenant data
Costly procedural errors
Emotional stress and burnout
By partnering with Ole Bay Management, Inc., landlords gain a trusted advocate who understands Alabama’s landlord-tenant laws and court systems. We handle every step—from eviction filing to judgment collection—professionally and efficiently.
The Legal Process of Wage Garnishment in Alabama
For landlords in Mobile and Baldwin County, understanding the local legal framework is key. Alabama law allows landlords with a valid judgment for possession and damages to pursue garnishment through the local District or Circuit Court.
Here’s a simplified breakdown:
Obtain a Monetary Judgment: After eviction, the court must issue a judgment for unpaid rent or damages.
File for Garnishment: Submit a Motion for Continuing Wage Garnishment to the same court.
Serve the Employer: The court clerk or Sheriff serves the order to the tenant’s employer.
Employer Compliance: Employers must begin withholding wages immediately.
Court Releases Funds: After the waiting period, the court disburses the collected funds to the landlord or management company.
This process typically begins within 30–60 days after the eviction judgment, though timelines can vary depending on court backlog and tenant employment status.
How Professional Property Management Makes All the Difference
1. Legal Knowledge and Compliance
Professional property managers are trained to navigate landlord-tenant laws, ensuring that every step—from notice to eviction to garnishment—is handled legally and efficiently.
2. Access to Resources
A reputable management company like Ole Bay Management has established relationships with attorneys, courts, and collection agencies, which speeds up the process and increases recovery success rates.
3. Documentation and Recordkeeping
Successful collection efforts depend on detailed records—leases, payment ledgers, communication logs, and inspection reports. We maintain complete documentation for every tenant to support legal actions if necessary.
4. Protection of Your Reputation
Handling collections yourself can become personal or emotional. Our team acts as a professional intermediary, protecting your reputation while enforcing your rights firmly and respectfully.
Real-World Example
One of our Baldwin County property owners recently faced a challenging situation: their tenant abandoned the property owing nearly three months of rent and left behind significant damage.
Because we had collected a full security deposit upfront, the immediate loss was partially offset. Within weeks, our team filed for eviction, obtained a monetary judgment, and began wage-garnishment proceedings. The tenant’s employer complied, and within six months, the landlord had recovered nearly 80% of the total debt.
Without professional management, this owner would likely have written off the entire loss—or spent months navigating the process alone.
Lessons for Property Owners
Here are key takeaways for landlords in Mobile and Baldwin County:
Always collect a full security deposit upfront—no exceptions.
Screen tenants thoroughly for financial stability and rental history.
Act quickly when rent payments are missed—delays reduce your options.
Use professional management to handle evictions and collections legally.
Leverage wage garnishment and credit reporting to recover debts efficiently.
The Value of Partnering with Ole Bay Management, Inc.
At Ole Bay Management, our mission is to protect your investment while minimizing your stress. From screening and leasing to maintenance and collections, we handle every detail of property management so you don’t have to.
We proudly serve homeowners and investors throughout Mobile and Baldwin County, including:
Mobile, Midtown, West Mobile, Semmes, and Dauphin Island
Daphne, Fairhope, Spanish Fort, Foley, and Gulf Shores
Whether you own a single-family home, a multi-unit property, or an entire investment portfolio, our experienced team ensures your rental operations remain profitable and protected.
Conclusion
Dealing with unpaid rent is one of the most frustrating parts of being a landlord—but you don’t have to handle it alone. Wage garnishment, bank levies, and credit reporting are powerful tools for recovering losses, but they require experience, precision, and persistence to use effectively.
At Ole Bay Management, Inc., we take care of the entire process—from preventing problem tenants through strong screening to recovering funds when things go wrong. Our goal is simple: to keep your properties profitable, your tenants accountable, and your peace of mind intact.
If you’re tired of chasing rent payments or worrying about evictions, let the professionals handle it for you.