What to do when your tenant is not paying rent

If you speak to any property owner or managing agent with a new or established rental book, their greatest concern will be, “the tenant is not paying their rent.”

Rent Protect, which offers landlords a guaranteed property rental income against tenants, noted that there are steps that can be taken when dealing with a defaulting tenant before calling in legal assistance which can be expensive and time consuming.

What to do:

  1. Call the tenant immediately and ask for payment. If the tenant has problems, a later payment date may be agreed to, but there is no obligation to do so
  2. If payment is not made into the agent’s or the landlord’s account on the agreed date, a written breach of contract letter must be sent immediately. The letter needs to say that the tenant has seven days to remedy the default. This is normally stipulated in the lease agreement
  3. The breach of contract letter should note the landlord/managing agent’s intention to report the payment default to the credit bureaux should the account not be settled within the seven day period. This letter is normally sent by a registered debt collector
  4. Property owners/managers or debt collectors are entitled to register a default record against the tenant 20 business days after the letter of demand has been sent
  5. If the tenant fails to make payment within seven days after the breach of contract letter was sent, a written notice needs to be sent, it has to clearly state that the lease agreement is cancelled, and demand the tenant vacate the property
  6. If the tenant still fails to leave the property or disputes the cancellation of the lease agreement, there will be no choice but to call in legal assistance and to proceed with an eviction order

This article originally featured on Rent Protect, here

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What to do when your tenant is not paying rent