How to get rent arrears from tenant?

One of my cousins recently asked me how to recover rent arrears from tenant. I said there are several methods to recover your arrears. Some of them include reviewing the rental agreement, documenting the unpaid rent, communicating regarding the same with your tenant and so on. I have shared more ways below.

How can a Landlord Recover Rent Arrears?

Recovering rent arrears from a tenant in India involves a series of legal steps. Here’s a structured approach:

• Review the Rental Agreement: Begin by reviewing the rental agreement to understand the terms regarding rent payment, due dates, and penalties for non-payment.

• Document the Arrears: Maintain a detailed record of the unpaid rent, including:

• Amount due

• Period for which rent is owed

• Any communication with the tenant regarding payment

• Communicate with the Tenant: Start communication with the tenant to discuss the arrears. This could be through a phone call or a face-to-face meeting.

• Send a Formal Demand Notice: If informal communication does not resolve the issue, send a formal demand notice. This notice should include:

• Total amount due

• Due date for payment

• Consequences of non-payment (e.g., legal action)

• Use a registered post or another method that provides proof of delivery.

• Negotiation: If the tenant is facing financial difficulties, consider negotiating a payment plan. This can help recover the dues overtime.

• Filing a Civil Suit: It is another method on how to recover arrears of rent. If the tenant doesn’t pay after the notice, you can file a civil suit for due recovery in the local civil court. This involves:

• Preparing the required documentation, including the rental agreement, demand notices, and proof of communication.

• Outline the facts and the amount claimed.

• Small Claims Court: For smaller amounts (below a specific threshold, which varies by state), consider filing a claim in the Small Claims Court for a faster resolution.

• Claim Security Deposit: If the tenant provided a security deposit, you may deduct the arrears from this amount, provided it is legally permissible.

• Get a Judgement: If you win the case, the court will issue a judgement in your favour, specifying the amount owed by the tenant.

• Execution of the Judgment: If the tenant still refuses to pay after the judgement, you can take steps to enforce it, which may include:

• Garnishing wages or bank accounts

• Get a recovery warrant for property seizure

It’s advisable to consult a legal expert who specialises in property or tenancy law. They can help guide you through the process, assist with documentation, and represent you in court if necessary. I hope you understand how to recover rent arrears from tenant.

The legal rights of landlords are rarely considered, even if discussions and stories about tenant rights take the spotlight. In India, the regulations governing rentals have made sure that landlords are protected in the event that renters don't pay their rent. Let me help you out in knowing how to get rent arrears from tenant.

How to deal with rent arrears?

1) Speak with your tenant

Start by speaking with your tenant regarding the rent arrears. If their reasons for missing payments are temporary, you may be able to assist them in clearing up their debt. In the end, you want to come to a fair and mutually beneficial agreement with your tenant. 

2) Be sure to note all payments

Keep a note of the dates that the rent is due and when it is paid. Sending tenants a receipt for their payments is a wonderful idea, but it's not required. This can be something that your tenants also want for their own records. This is particularly crucial if tenants in a joint tenancy send you separate rent payments. This is one of the main methods in how to recover rent arrears.

3) Send a notice of late rent

Whenever the rent is a week overdue and you haven't been able to work things out with your tenant, the best course of action is to send 1st letter of late notice to them. This letter will make it obvious that the rent is past due and highlight how crucial it is to pay the rent on time. It must also describe the potential consequences if the issue is not resolved as well as your rights as a rent arrears tenant, such as court action and eviction.

4) Request possession of your property from the court

This will be your next course of action if you're still unclear about how to collect unpaid rent from a tenant. By this time, if after your best efforts, a solution has not been reached, it is time to look into getting your property back. It's critical that you know the landlord's rights when rent is late.

You are now aware of how to get rent arrears from tenant.