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Today, real estate has become one of the most sought-after investment options in the market. This is especially true for tenants who want to rent apartments or flats and earn a steady income.
According to statistics, in 2023, more than 44 million households in the US were renters. However, the real problem occurs when a tenant refuses to pay their rent on time.
This not only creates mismanagement but also disrupts the landlord’s income flow. If you’re also suffering from a tenant who doesn’t give you rent on time, then here are some things you can do!
1. Review The Rental Agreement
Before you jump to any conclusions or take any rash steps, it’s important to review the rental agreement carefully.
The rental agreement will be your primary resource whenever your tenant fails to pay their rent on time. It outlines the specifics of the agreement, including the due date of paying rent, the amount, the consequences of non-payment, and extreme measures to be taken.
As a landlord, thoroughly check the terms and conditions in the agreement. If you need help understanding the document, always ask an attorney to help.
2. Collect From The Security Deposit
One common measure that many landlords take is to collect money from the security deposit if the renter hasn’t paid money for months.
The security deposit is taken immediately before the renter moves in and acts as a safeguard to pay for any damages or non-fulfillment of payment.
The amount of security deposit is typically two or three months’ worth of rent, but it varies from one region to the other.
If there’s a clause mentioning a security deposit in your renter’s agreement, then you’re allowed to deduct it as rent. This will also help the tenant fulfill their legal obligations.
3. Try Mediation
In some cases, the reasons behind why a tenant is unable to pay rent might be genuine, such as financial issues.
If you see that the tenant initially fulfilled all their obligations by paying rent on time but has stopped payment for the last couple of months, it’s best to try out mediation and negotiation.
These terms might already be outlined in the renter agreement, but even if they are not, draft a new document stating the mediation clauses.
It’s advisable to have a neutral third party oversee the negotiation proceedings so that the outcome is favorable for both parties.
4. Serve A Demand Notice
For the first one or two months, you can give the tenant a verbal or handwritten warning if they don’t pay their rent. But if things go out of hand, you might have to serve them a legal notice, stating their negligence and failure to adhere to rules.
For example, if a tenant in a San Diego property is being particularly difficult, you can ask a property lawyer San Diego to help you draft a notice.
Here, you have to mention the notice period within which the tenant has to pay the rent compulsorily. If they refuse to do so, you can escalate matters by going to court.
5. Carry Out Court Orders
If you win the argument, the court will give you various options. Based on your specific circumstances, you can try various methods to cover the unpaid rent, such as attachment of the tenant’s property, garnishment of their wages, or even eviction from the premises.
The court will also mandate a decree stating that the tenant must pay rent. The details of the decree might vary from one state to another, but the basic information remains the same.
Additionally, some courts even allow landlords to obtain payment for the financial and mental distress that they’ve had to endure.
6. Get Eviction Notice And Assistance
When things get escalated, you might have to consult an attorney and move to court. You also need to get a favorable response from the rent control authorities or the local court to win the argument.
If the response is satisfactory, you have the right to draft an eviction notice asking the tenant to move out permanently.
However, many tenants might refuse to leave the property even after an eviction notice is served. In such extreme situations, you can get help from local law enforcement authorities like the police. Remember not to engage in physical violence but to solve matters responsibly.
Conclusion
One of the most important points to remember is to hire an experienced lawyer who will help you win the case. Additionally, you also need to be vigilant and regularly attend court hearings to emphasize your perspective. If all goes well, you’ll receive both your due rent and peace of mind!
