Tenants
who do not pay rent or refuse to vacate the property after last date has passed
are a nightmare for every landlord. According to Dean Graziosi, there are
different situations in different cases. It is not necessary that the tenants
are always vamps. In most of the cases, the issues are resolved once there is a
thorough discussion between the tenant and the landlord. Dean suggests not acting
in haste while dealing with your good tenants.
Dean
Graziosi is a real estate expert. He
has been working in real estate business
for more than twenty years. Dean started his business at the age of 18, with a
run-down apartment building. The deal was conducted successfully. This paved
the way for a career that later build a million dollar business for Dean. Dean
is a famous author. He has written bestselling books. He is also famous due to
his calm and convincing speeches.
He
speaks at live events and teaches people how to launch real estate business
successfully. He is also famous because of infomercial series running on local
TV channels. His infomercial series is one of the longest running series of US.
Dean Suggests that one must resolve all issues with their tenants by
negotiations.
Negotiations:
The
first and foremost thing to do is negotiate. There are chances that the tenant
might be experiencing some kind of financial issue. Talk if he had lost the job
or his partner has left. Sometimes the issues are personal whereas other times
the issues are financial. Once you get in touch with the tenant try to resolve
the issue in one or other given way:
- Give him some extra time if he is willing to pay all arrears within a week or two.
- If he is currently unemployed or the partner has left, ask him to search for state welfare help.
- If tenant is willing to pay, half or more of a hefty rent this month whereas arrears next month, set a proper plan. Remember while making any such deal, you must keep in mind previous record of the tenant. If he is a loyal tenant who had always paid on right time and this is the first time such situation has arrived, you can consider above-mentioned plan.
- Reduce the rent to a certain limit. Sign an agreement that defines for how much time the rent has been reduced. Also mentioned date and month from which previous rent will be charged.
Tenant is Not Responding:
If your
tenant is showing audacity and is not answering to you phone calls, fax, SMS
and all other means of communications, this is time to show counter policy. If
the tenant has given any guarantor or referral in the agreement, contact them.
Never reveal that you are actually searching your tenant to collect arrears.
Since there are chances that the tenant might be in some kind of problem, you
must first try to contact them instead of complaining to a third party.
If the
tenant is deliberately not answering your communications, then you must go for
legal help.
The Housing Act of 1988 and 1996:
Two
sections are included in The Housing Act, Section 8 and Section 21.
Section 8:
- A notice under Section 8 is issued if you are still within fixed price contract.
- Ask the tenant to vacate the property, clearly indicate reason why you are ordering for evacuation.
- Some of the causes are mandatory whereas others are up to the discretion of court.
- Mandatory causes are answered instantly, i.e. the tenant has to vacate the property (an order will be issued by the court).
Section 21
- This notice is issued when fixed tenancy period comes to an end.
- This notice does not require mention of the causes.
- It is not necessary that the tenants must breach any clause; you can order an evacuation at any time once the fixed period is over.
- This is simpler than section 8.
- Once you have issued this notice, your tenants have to leave the property within two months. After issuing section 21 notices, you will not get any arrear rent.
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