Legal Handling of Late Paying Tenants

Written by admin on April 10th, 2011

Landlords often complain of late-paying tenants.  Despite of all their efforts and actions in collection, still they are left in hang as to when these tenants will actually pay their rental dues.  Tenant will always a thousand and one reasons on why they are not able to pay on time.  Especially now in the middle of a financial economic crises where almost all family budgets are in bad shape; leaving a string of unpaid monthly bills, rental payments and monthly amortizations.  With these predicaments, come the victim – the poor landlord.

As a matter of fact, the landlord should be spared from all these predicaments.  This is suppose to be straight business deal.  You stay in my dwelling place, use its facilities and treat it as your own and pay me the corresponding rental dues on time – – – this should be the deal.  But most landlords have this minute humanitarian side in them that try to trace the reasons why his tenants are not able to remit their payments on time.  Straight business philosophy tells us that focus your attention to the problem at hand.  The problem is non-payment of rental dues by the tenant therefore, this should be the focus of the landlord.  The reasons on why a tenant will not be able to pay are no longer the concern of the landlord.  He should be spared from such.  Otherwise, it will just complicate things.

In rental property mechanisms, payment habit and credit history is very important; and these traces to the credit management character of the tenant.  There are tenants who are frank and candid who can directly plead honestly plead to his landlord that he is not able to pay on time.  There are also those tenants who consistently evade their rental property owners because they are not able to tell them that they will not be able to remit payments.  On the other hand, there are those confrontational and argumentative tenants who rant all the inconveniences that he has experienced while he was staying in the rented property so as not able to pay his rental dues.  This is a diversionary tactic on the part of the tenant, and the landlord must be very keen on this.

But lets get to the bottom of this.  Here are some pointers which a rental property owner may strongly impose:

Rental properties must always be and at all times be covered with a contract.  This contract will establish a tenant-landlord relationship.  The tenant has his own duties and responsibilities as well as the landlord.  Rental business generate profit and earnings from rental payments; hence, surely all rental contracts state that it is the responsibility of the tenant to remit his payment on time, otherwise he will have to pay penalties for late payments and other charges. Worse, if still after several months, he is still able to comply with the required payments, he will be evicted from the property.  Prior to the actual transfer of the tenant to the rented property, it is assumed that he has read, understood and conformed to the contract.  Therefore, it’s the right of the landlord to demand the full and strict implementation of the contract.  So once, late payments occur, the landlord should always have the contracts as his legal basis for actions.  In this case, the tenant will no longer be able to contest it since he has agreed with and signed the contract prior to his stay in the property.

In the same way, the landlord has also to fulfill his commitments to the tenant as stipulated in the contract.  It is a rule of thumb as always been stated in all rental contracts that it is the responsibility of the landowner provide above-standard, well kept, convenient and fully secured rental properties.  The landlord has to be true with this commitment so as not to give an inch of contestability to the tenant should collection time comes.  This is a prevention strategy.  As landlords, he has to keep all bases of his rental business covered.

The handling of late paying tenants will always boil down to the strict enforcement of the agreed contract.  It is simply complying with all stipulations outlined in the legal instrument.  After all, both parties has agreed and conformed with it before official business has commenced.


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