A tenant not paying is one of the worst nightmares for any landlord. Even if you have some money on the side, it will run out sooner than later. It likely means that you will fall behind on your payments as well. That is why you need to act fast.
Today, we will list six things you should do when your tenant stops paying.
- Procure record of past and overdue payments:
Before you seek a legal resolution or even talk with your tenant, you must procure all past and overdue payments records. Instead of going back and forth with the tenant or your lawyer on what needs to be done next, you need to get the paperwork in order before moving to the next step.
- Write to the tenant alerting them of legal action:
Maintaining a record of communication with your tenant when the tenant stops paying is always a good idea. Instead of speaking with the tenant, it is a good idea to write to your tenant and keep a record of the same. That way, you can use these records later to evict the tenant.
- Inform the guarantor:
Even after writing, if the tenant is not paying, you can speak with the guarantor. The details of the guarantor will be in the deed of guarantee. You can legally ask the guarantor to pay the rent arrears if the payment is more than fourteen days late. Once again, stick to return communication, either a letter or email.
- Claim landlord insurance:
If that fails, the next step you must undertake is filing a claim with the landlord’s insurance provider. For the same, you will need all the documents of paid as well as unpaid payments. If the tenancy ends, you can deduct the rent from the tenant’s deposit. To do so, you need to go through the terms and conditions of the tenancy deposit scheme.
- Contact a lawyer:
Undertaking these steps for an ordinary individual can be confusing and intimidating. That is why you can contact a lawyer if you aren’t sure how to undertake the steps. Numerous lawyers assist landlords whose tenants stop payments. Opting for specialized lawyers increases your chances of getting an eviction and compensation.
Believe it or not, tenants not paying is a common problem, so finding a lawyer specializing in this domain is not that difficult.
- Initiate eviction proceedings:
Most specialized lawyers will ask you to initiate eviction proceedings if the rent arrears are two months or more. While the law firm will try to communicate with your tenant in most cases, if that is not possible, the lawyer will recommend you send a section 8 eviction notice. At this point, it is best to follow your lawyer’s advice and send the notice no matter how punctual the tenant has been. That is the only way to initiate the eviction proceedings and get the position of your property.
Thus, if a tenant stops paying, these are the six things you need to do immediately. Acting on these right away ensures that your property is safe and the rent is not delayed any further.