How do you handle delinquent tenants?
Our standard lease contract for long-term rentals has several stipulations that we can enforce. That is, if needed in order to collect from delinquent tenants:
- First, there is the 3% per day penalty on the overdue amount that we can impose.
- Second, we can deny them access to the unit if they are delayed for at least 1 month already.
- Third, we can liquidate whatever valuables they have left inside the unit if 2 months have already passed and they still refuse to settle their unpaid rent.
- All of the above is without prejudice to our right to terminate the lease contract and demand from them the immediate settlement of the rentals for the remaining months in their lease.
- If we have to terminate the lease, that means their security deposit will also be forfeited.
In the very rare events that we have to enforce the heaviest of these stipulations, we really exercise our contractual right to do so. We do make the necessary filing of legal actions at the appropriate courts.
All the while, the monthly rentals that the unit owner is supposed to receive as per the lease contract, will be covered by us. We will only get reimbursed from the amount we collect from the delinquent tenant.
This is our way of guaranteeing that we really choose only qualified and reliable tenants.