Dealing with delinquent tenants is one of the main concerns of many property investors. Whilst landlords may have their own philosophy and approach for this situation, the only thing you can do is keep your composure and focus on finding the best solution to the problem.
Here are some important reminders when handling this situation:
1. Contact a Debt Collector Agency
If you think you have been lenient enough to your tenants, you might want to consider hiring a professional debt agency. Some companies provide rent recovery services and debt enforcement by employing certified bailiffs and security teams.
2. Review the Contract
Take the time to review the leasing contract you have provided for your tenants. This document should cover the consequences for delinquent or delayed payments. Keep in mind that without the written contract, it can be difficult to press charges.
3. Consult a Legal Professional
Hire a legal counsel to help you assess the situation. Determine the best legal actions you can do to control the situation. At this point, you should provide the contract signed by the tenant, payment records and other documents that prove delinquencies. You can file a lawsuit for breach of contract or collection of overdue rent or eviction.
4. Give the Tenant a Final Warning
Set a meeting with your tenant and bring all the necessary documents. Discuss the contract or agreement they have signed. Give them a final warning and make arrangements regarding their debts. Some landlords even issue a final written warning indicating the timeline to clear the tenant’s debts.
As a property investor, you need to be prepared for these unexpected circumstances. It is important to ensure that you have the legal documents and contracts before accepting tenants. Make sure they sign all the necessary documents.