What Do You Do if Your Tenant Owes You a Payment?
Being a landlord has its challenges. If you properly screen tenants, they are more likely to pay rent on time and take good care of the rental unit. Is some cases, however, tenants experience financial setbacks that make it difficult to meet rent obligations. If you are a landlord and your tenant owes you a payment, there are several courses of action you can take to recover the payment, including legal methods that enable you to reclaim control of the property.
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Keep Records
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The initial step to take if a tenant owes you money is to document the amount owed. It is important to maintain files that include the tenant’s lease agreement, payment records and unit improvement records. Once a payment is missed, record the details in the tenant’s file. Calculate any applicable penalties and late fees. If you allow the tenant to make partial payments, document the nature of the agreement and try to get it in writing if possible. Without adequate documentation, it could be difficult to legally enforce your rights as a landlord if you have to take the tenant to court.
Communicate
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Notify your tenant as soon as the payment is missed. Contact the tenant by phone and inform him that you have yet to receive the rent payment. If the missed payment is an oversight on the tenant’s behalf, ask him when you can expect payment. If the payment is late for any other reason, you can allow him to pay the rent and add late fees and penalties, or you can pursue legal action to collect the rent.
Use your judgment on how to proceed. Evictions cost time and money. If the tenant has a clean rental history with you but is going through a difficult time financially, consider giving him extra time to pay. However, if the tenant avoids your calls or has a poor rental history with you, protect your investment and exercise your right to pursue legal action.
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Serve a Demand Letter
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If you are unable to contact your tenant or communication is unsuccessful, serve the tenant a demand letter. This letter is notification that the tenant has a certain amount of time to pay rent or an eviction can occur. Depending on the jurisdiction, the tenant typically has three to five days to pay the amount owed or a judge can order an eviction.
Initiate an Eviction
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To properly notify the tenant that you are beginning the eviction process, you must file a petition with your county court and pay a filing fee. The court will schedule a hearing. You must serve the tenant with copies of the filed documents. Your tenant now has three options; he can pay the amount owed, file an answer with the courts or do nothing. If the tenant comes up with what he owes, you must accept the rent. If he files an answer with the court, a hearing takes place and a judge decides whether to order an eviction. If the tenant does nothing, the judge can still order the eviction, and you have the right to regain control of the unit. You can obtain a judgment against the tenant to recover the payment owed.
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References
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