The rental business, or any business for that matter, needs money to thrive. No industry will run without payment from consumers. In this industry, the landlord’s business will succeed through having tenants. By having renters, landlords can use the rent income to pay for utility bills and repairs while also gaining profit.
But what if the tenants suddenly left without paying? What should the landlord do then? Once it happens the first time, the landlord may not know what to do. Luckily, you will after you read this.
First things first, the landlord should not immediately do anything rash. The landlord should have enough reason to believe that the renter abandoned the property. The right thing to do is to keep calm and assess the situation. The landlord should keep in mind the correct process of obtaining unpaid rent or else risk legal troubles.
• Determine the tenant left
A lot of things can tell if the tenant has left the property. Here are some examples:
a) It is past the end of their lease
b) There is no response to the notice of abandonment.
c) The tenant’s emergency contacts gave the landlord confirmation
d) The neighbors confirmed they saw the tenant leave with his belongings.
e) The tenant has not been on the property in more than the state minimum amount of period.
Although there are more ways to tell if the tenant left the property, the mentioned are the common ones. The landlord should make sure to document all of these entirely.
• Prepare to prove that the tenant has unpaid rent
Having all the related documents will serve as an advantage. The landlord should gather the proof that the tenant has not paid and the last time they did. If he gave them notices, he should include them along with the other documents.
• What should the landlord do next?
After validating that the tenant left the property with unpaid rent, what are the landlord’s next steps? Well, it depends on the situation and what works for the landlord.
Did the tenant leave before their lease ended?
If this happens, the landlord must make sure their legal right to use the unit has ended. Depending on the state where the property is, the landlord may file for an eviction case. The landlord can check the local laws for this process. The reason for filing a lawsuit is to gain a writ of possession. It proves that the landlord owns the property. Once the landlord has it, he can ask for the rent through a collection agency or small claims court.
Did the tenant’s legal right to use the property ended?
If they left because their lease ended or got evicted, they lose their right to stay in the property. It is also the same if the tenant gave notice and left. If this is the case, the landlord achieves full possession of the unit. He can go after the rent through a small claims court or a collection agency.
Filing a case through a small claims court will help the landlord get the unpaid rent. However, the process is not cheap. The landlord will have to spend money and time on filing a case. He would have to think it through and decide if it’s worth it. The landlord should also expect the tenant to deny all the claims, and it can become stressful.
If the landlord would opt to use a collection agency, the same things apply. The former tenant may refuse to pay and insist that they do not have unpaid rent. Using an agency will also cost money.
The landlord has every right to pursue the unpaid rent. It is his income, and not pushing through with it will mean he has to pay for the expenses himself. The landlord should know his options and the ways to get the payment. While he’s doing that, you can start looking for new tenants to fill in the vacancy. Finding new tenants will help the landlord avoid prolonged vacancy and loss of income. The best thing you can do is sign up for Padleads. You can post property listings on the platform and syndicate them to other websites. Good tenants who will not leave with unpaid rent are out there. With Padleads, you can find them.