One of the fundamental aspects of being a landlord is to collect rent on time. Unfortunately, it is mostly out of landlord’s control to regulate a smooth rent payment process. As a law abiding landlord, you must have taken adequate steps to prevent situation of non-payment of rent. Mostly, you are worried about the agreement not being violated in between the term and property being damaged.
As a precautionary measure, you must have collected these identity documents from the tenant at the beginning of your association:
• Valid identity proof
• Valid address proof
• List of two or more references
• A character certificate from the tenant’s employer
However, if you ever face a situation as this and need to resolve such issues, you must do it carefully by following the given steps:
1. Talk to your tenant – It is wiser to sit down and talk it out with the tenant in order to understand the reasons behind his non-payment. While some may suffer a financial crunch, others may have several reasons. Whatever may the situation be, it is advised to sit down together, sort out possible differences and settle them.
2. Understand your state laws – Although taking a legal course of action should be a final attempt to recover rent, it is advisable to thoroughly understand the laws of your state pertaining to rental agreements. Each state has different laws in handling tenants who don’t pay their rent. The more knowledge you have about landlord rights in your state, better prepared you’ll be while approaching a tenant who isn’t paying. You’ll also be equipped better to handle legal threats if any that they make towards you because you’ll already be aware of your rights.
3. Decide if you want to go legal – If you are unable to arrive at a mutual resolution with your tenant, the next step is to decide if you want to bring in your lawyer. They will be able to offer guidance, as well as a solution for closure in this situation.
4. Adopt a protection plan – Although you try to filter these individuals in your tenant screening process, you’ll still find people who try to break free. The best action in such situation for a landlord is to cover them with a proactive plan. In most cases, these amount to a heavy advance sum held by the landlord to be deducted when the tenant vacates the property.
However, as a preventive measure, landlords must verify the tenant background through simple and easy to use mobile apps before trusting them with their property at the tenant screening stage.