Whether you are just in the planning stages of renting out one of your properties, or are a seasoned landlord who has provided temporary homes for college students, growing families, and retired adults, holding the title of “landlord” comes with its own share of occasional difficulties.
The most problematic of these dilemmas is often the one that many landlords fear the most: a tenant who won’t pay.
But, it doesn’t have to be an uphill battle, explains Jon Selinger, managing partner of ASM Properties, a property management business in Tennessee. If you have a property manager who is in charge of your home or apartment building, then he already has the measures in place to take affirmative action. If not, you can still take a number of steps to obtain the money you are rightfully owed.
Establish communication: Reach out to your tenant to let him know that you have noticed a missed payment on his part and are curious if it was just an error, or if he needs an extension. Once you establish communication, Selinger says it is important to remain in contact with your tenant so that he is aware that you are on top of everything concerning the property. It is as simple as picking up the phone and leaving a brief, but concerned, message.
Send a letter: If you are not getting a positive response from your tenant, or he has repeatedly missed payments, your next step would be to send a letter. Since this is still a formal contract, you will want your letter to reflect that as well. State the dates that the payments were supposed to be made on and your attempts to establish contact with the tenant regarding the matter. You should also make a copy for yourself, and, if you’d like, you can even pay just a few cents extra at the post office to get a confirmation of receipt so that the tenant cannot deny that he ever received the letter.
Contact your attorney: If the problem is persistent and you have seen no effort on the part of your tenant to repay his acquired debt to you, the next step would be to take him to court. Selinger notes that typically within a month of contacting his company’s lawyers, the tenant will be summoned to appear in court.
Even though it may seem like a struggle, remember that the tenant signed a contract that he would pay you a certain amount of money every month, and you are lawfully entitled to that money.
