Whoriarsty.com

Who runs the world? Tech.

Real Estate

How to Collect Back Rent: What Every Landlord Should Know!

Knock on the tenant’s door and yell, “Your rent is behind. Take it.” If collecting back rent was as easy as that, then you wouldn’t need to read this article. Unfortunately, tenants with back rent are masters of stagnation tactics and are filled to the brim with excuses. You must take decisive action, keep a record of documents, and comply if you are going to get the money owed to you.

The first step in collecting back rent is to start collecting! Don’t just “let it go” or wait a few days to see if the tenant will come with a check. Take action the morning of the day the rental is officially late. Otherwise, you’ll seem like easy prey and what you really need to do is send the message that paying late is unacceptable.

One method is to send a notice by mail. Phone calls are too easy to dodge, and “I didn’t get the message” is a smart, mature excuse. The letter should state when the rent is due, when the grace period expired, how much money is owed (regular rent plus late fee), and what additional steps you will take if you do not receive the money by a certain date.

However, a better approach is to show up at the rental property and personally deliver a Notice of Rent or Eviction Payment. It is an official written notice that your rent is past due, indicating the date you will demand the eviction if you have not been paid. You can find standard Eviction or Rent Notice forms for free online.

Your Rent or Eviction Payment Notice has a little friend called a Payment Commitment. These two guys must always stay together. The tenant signs the Commitment, acknowledging that they received the notice. The tenant must also provide the date the rent will be paid and where the money will come from. Requiring the tenant to sign the Pledge provides you with proof that the tenant found out about the overdue rent. Also, most people are more likely to keep their word if it is in writing.

Your personal visit with these two documents in hand will be enough to get most tenants going. Unfortunately, you might run into the occasional nifty dodger. If the Commitment to Pay is not honored, it’s time to take the next step: sue for eviction.

One word of caution: a tenant might try to get it right and avoid going to court by offering you a partial payment. Do not do it. Accepting a partial payment can cause your eviction claim to be dismissed. In which case, you go back to where you started and have to resubmit the claim to get the remainder of the balance.

In court, the tenant will have two options … pay or get out. Courts don’t particularly want to throw people up their butts. Although you may feel completely powerless as the unpaid rent continues to pile up, the court will see you as the most powerful party. To increase your chances of winning the lawsuit, show the court that you gave the tenant enough notice and ample opportunity to catch up on the rent.

This is when the paper trail comes into play. Document every step you take along the way as you try to collect your overdue rent. Be sure to follow the letter of the law, as some states have laws that dictate the due date of the rent, the length of the grace period, and the amount of the late fee you can charge. Follow these two steps and you will prevent the tenant from raising the most common defenses (“I didn’t know!” Or “I tried to pay on time, but the landlord wouldn’t take the money!”). proceedings.

It’s great to get rid of the indolent tenant, but you still want your money, right? That is why you absolutely must 100% sue for back rent when you sue for the eviction. The court will not automatically award back rent. You have to ask for it.

In some states, you can file both lawsuits at the same time. In other states, it depends on whether the tenant personally received the summons or not. It is impossible to generalize, but suffice it to say, make sure you really know the law in this case.

Now that you’ve gotten some gray hair from reading about the worst case scenario, here’s some good news. Most of the time, taking quick action and coming in with the Notice to Pay Rent or Eviction will get your rent paid. Going to court is miserable for almost everyone, and tenants want to avoid it as much as you do. You will most likely find yourself with the money owed to you if you only remember three F’s: be quick, firm, and comply.

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *