You receive a signed lease from your new tenant. Months later and you are no longer receiving rent payments. Don’t begin to take legal action until necessary. So, what are the steps to take to reconcile the issue? It somewhat depends on what is written in the contract that was signed. Below I have a listed some recommended steps to follow when a situation like this arises.
1. Late Rent Notice: Some renters provide anywhere from a 3 to 5-day grace period. If you didn’t receive anything during that time, provide a late notice warning of late fees (or whatever was agreed upon).
2. Direct Contact: Reach out to the renter if you haven’t received a response after prompting them with a late notice. Are they just having a bad month? Look at what was set up in the contract to protect both parties in case an issue like this arose. What can you legally do to ensure that you are not being robbed of your space? Let them know that if you do not receive rent by 0/0/0, they will be receiving an eviction notice.
3. Eviction Notice: if after the two prior actions they have yet to pay rent, you can now take legal action to resolve the issue. You may warn the tenants that if they do not pay, it will make a negative impact on their credit record. It’s their last chance to make it right.
4. Eviction Process: If the time in your eviction notice expires without payment, you may proceed with court action. I highly recommend involving a lawyer especially if you are unfamiliar with this.
5. Credit Bureau Reporting: They owe you money thus you have the right to report the ‘bad debt’ onto the tenants’ record which stays there for 7 years.
Don’t get taken advantage of. Understand your rights and know that not everyone is honest. Some people are going to try to force your hand. If you have a high-risk renter, keep in contact with them so they know someone is watching.
*information sourced from www.theLPA.com*