What to do when a Tenant is not Paying Rent
If you speak to any property owner or managing agent with a new or established rental book, their greatest concern will be, “the tenant is not paying their rent.” There are steps that can be taken when dealing with a defaulting tenant before calling in legal assistance which can be expensive and time consuming.
What to do:
- Call the tenant immediately and ask for payment. If the tenant has problems, a later payment date may be agreed to, but there is no obligation to do so
- If payment is not made into the agent’s or the landlord’s account on the agreed date, a written breach of contract letter must be sent immediately. The letter needs to say that the tenant has seven days to remedy the default. This is normally stipulated in the lease agreement
- The breach of contract letter should note the landlord/managing agent’s intention to report the payment default to the credit bureaux should the account not be settled within the seven day period. This letter is normally sent by a registered debt collector
- Property owners/managers or debt collectors are entitled to register a default record against the tenant 20 business days after the letter of demand has been sent
- If the tenant fails to make payment within seven days after the breach of contract letter was sent, a written notice needs to be sent, it has to clearly state that the lease agreement is cancelled, and demand the tenant vacate the property
- If the tenant still fails to leave the property or disputes the cancellation of the lease agreement, there will be no choice but to call in legal assistance and to proceed with an eviction order
Rent Protect offers financial protection, guaranteeing a monthly rental income from a defaulting tenant up to R50 000, and up to R75 000 in litigation assistance.
Rent Protect’s cover is a affordable must have for all wanting to secure their monthly rental income to eliminate unnecessary angst. Invest in your peace of mind with Rent Protect.
Interested? For more information click here