The tenant is not paying the rent - what can we do?

Letting a property can bring us considerable profits - provided that our tenant pays the rent! Of course, we do not want to alarm anyone; cases in which tenants fail to meet their obligations are fortunately rare and are not the rule. Even so, it is worth knowing what options a flat owner has if they find themselves in such an awkward situation.

It is best to start… with a conversation

The tenant of our property has been late with payments for some time - in such a situation it is easy to become frustrated. However, that is no reason yet to resort to "drastic" measures. The best thing we can do then is get in touch with the tenant. Let us ask about the reasons for the unpaid rent - most often the delay is not due to the tenant's ill will but to their problems, personal or financial. In such cases there is a good chance that we will be able to find an amicable way out of the situation. If our tenant is only a few days late with the rent, perhaps the only problem is the monthly payment date set in the agreement? When the difficulties of a late-paying tenant are greater, we can propose terminating the tenancy agreement by mutual consent, and allowing the arrears to be repaid in instalments. The tenant will be able to find a cheaper flat, and we will, sooner or later, recover the outstanding money.

When should we take legal action?

Unfortunately, we will not be able to reach an understanding with every tenant - and that is precisely when we should exercise our rights. Let us act calmly, however, with full awareness of the applicable regulations; as any experienced estate agent will confirm, the success of our actions depends on it.

Our basic tool is, of course, the right to terminate the agreement. We can use it if:

• the tenant has not paid the rent for three full payment periods

  or

• has paid the rent, but not in full; the outstanding amount must be equal to the rent for three full payment periods.

  And how do we go about terminating the agreement? First of all, we should (in writing) warn the tenant of our intention and set a one-month deadline for payment of the sums owed. For the tenant, this is the last chance to meet their obligations without more serious consequences! If our reminder does not result in payment of the outstanding rent, we have every right to terminate the tenancy agreement. This must, of course, be done in writing, stating the reason for the termination! Once notice has been served, a one-month notice period still applies to the tenant.

  And what if, after taking the above steps and after the (now former) tenant has moved out of the flat, we still have not received the outstanding rent? Then our only option is to take the matter to court. During the proceedings, what will matter most to us is presenting the problem that arose between us and the tenant accurately, and showing that we took every possible step to resolve the situation (this is exactly why it is so important that the reminders and statements submitted earlier were in writing). If we do that, we should obtain a favourable judgment, which in turn will be the basis for starting enforcement proceedings and obtaining the help of a bailiff.