Real estate owners always face problems in terms of getting payments from tenants. They might stop paying rent for no reason, and when you asked them what was going on? You are likely not to get any reasonable answers.
Real estate investment is profitable, but you need to make a strategy to put a renting price to make it lucrative. Sometimes, you fail to make any money because you could come across people who refused to pay to rent, and eventually, they decided to leave your apartment. Or they might just procrastinate to pay the monthly payment. It could lead to dramatic losses, mainly if the real estate owner depends on this as the primary resource. Here, we will review how to deal with this nightmare.
Suppose you want to get a furnished apartment for rent in Bahrain, or you need a villa for rent or any kind of property in Bahrain to attack the real estate market for investment. In that case, you need to follow the instructions below to make it a profitable deal.
Steps to Deal with a Tenant Who Refuses to Pay Renting
Review Rental Books and receipts
- Before making any actions, you have to review all receipts to know when you got the renting payment. You could be wrong with the date.
- If you ensure that the tenant has stopped paying rent for a month, now you can apply terms and conditions as agreed in the contract.
- Some contracts have determined a fine or plenty if the second party (tenants) doesn’t pay a renting; others have set other measures like the contract will be exempt.
- But if there are no conditions in the case of overdue payments, you are likely to do nothing against him.
You Need to Know the Legal Mesure You Could Take
- Review the renting book and know if it’s the first time he is committed to paying the rent or it becomes just a habit for him.
- If it’s the first time, just wait for a couple of days to determine how you react against this action.
- You might have to remind him to pay the renting by a message or any way of communication.
- If it’s not his first time, you have to take strict action to ensure that he wouldn’t do this again in the future.
Communicate with a Tenant
- Have a phone call with him to know the reason behind not paying rent at the scheduled time.
- Maybe there is a reasonable reason, or he has already sent the payment by the bank, but there is something wrong with the depositing process.
- Maybe he just forgot about it, and he just needed someone to let him know the accurate date of paying.
Send a Note to the Tenant “Pay or Leave”
- After all, these previous steps and he still does not pay the renting, you should send a note to him “Pay or Leave the apartment.”
- This note should include the reason and when he was supposed to pay. Also, let him know that there is a grace period, and after that, he is obligated to leave the apartment immediately.
- If he has refused to pay or leave, it would be good to take legal action against him.
Negotiate Again with the Tenant
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You still have an opportunity to end this stressful situation before taking any legal action. Negotiation is always a good idea.
- Make a deal with the tenant by asking him to leave the apartment immediately, and you will pay money for him.
- Yes, as you have read, you can pay money for him to end this situation. It could be weird, but sometimes it works.
- But you have to know that the legal procedures always take a lot of time, and till you get a legal verdict against the tenant, you will suffer more losses because you haven’t received any renting anymore. At the same time, you will not be able to rerent your apartments again because the current tenant has refused to leave peacefully.
Now the Legal Action is the Answer
- If he has refused to leave the apartment, even you have offered to pay money to do so; now, legal action is a must.
- Be prepared to show all notes and notifications you have sent to him for the sake of negotiation to ask him politely to pay the overdue payments. It would be suitable proof of your good intention to deal with non-payment of rent.
- Please don’t go to the court without these documents or screenshots to let them know how you have displayed a maximum degree of restraint.
- Please don’t resort to provocative measures that would not be in your favor, like being involved with any violence.
Keep yourself away from all these concerns and ensure that you will regularly receive payments from residents because these problems will drain your energy and cause losses. You can read these handy tips:
- Require documents and papers from the tenant. Or you can ask him to bring any documented form from his workplace to make sure that he can pay the renting as agreed.
- Ask him to bring a copy of his identity document or passport and put them away in a safe place, and you can hire a lawyer to inspect the lessee to make sure that this person has not been sentenced or he has never been found guilty.
- Know all information about the tenant’s family and if there is anyone who will live with him.
- If you are still suspected of the lessee and do not get enough information about him, you can make a lease is restricted to a short period to reconsider if you want to renew the contract or terminate it.
- Set a number of terms and conditions if the tenant has stopped paying or there is any damage in the apartment. You could ask him to evict the apartment immediately if the contract included this subject.
- Set the amount of renting in the contract, when he must pay, and the lease term.
