The Do’s and Don’ts of Collecting Unpaid Rent
As a landlord, it is inevitable that at some point you will have a tenant that fails to pay rent either on time, or at all. Whether this is due to circumstances within or without the tenant’s control, you’ll want to be prepared to handle this situation in a way that is most likely to result in the tenant paying you any back rent, late fees, and other money owed.
In today’s post from Morris Law Group, we are going to discuss some of the do’s and don’ts of collecting unpaid rent. Read on to learn more, and if you are in need of an experienced real estate law firm to help you with unpaid rent, reach out to our team today.
Don’t harass your tenants
First and foremost, you should not harass your tenants. This includes sending excess amounts of text messages or emails, using profane language, calling repetitively, calling outside of business hours, or showing up to their apartment unannounced. Whether your tenant is behind on one month’s rent — or more, once they have been notified through the proper channels, they will likely understand that they owe rent. Harassment will only elevate the situation and will make it more likely that your tenants will not pay.
Do contact your tenant and send a notice
Once a tenant’s rent is officially considered late, you should send a notice through the proper channels. You should ensure that you are following any regulations regarding the ways that you are allowed to notify your tenant. Also, ensure that you do this in a professional manner. You don’t always know the reason why a tenant is behind on rent. They may have lost their job, had a death in the family, or are dealing with another issue that has affected their finances and ability to pay rent. Send a professionally worded notice and make sure that you keep records of every time you contact the tenant about their past-due rent. If the situation has to be taken to court, documentation is essential.
You May take partial payments if you’ve started the eviction process
If you’ve already started the eviction process, you may take partial rent payments from those tenants. Under Minnesota law, a tenant has until the date of the eviction hearing to ‘redeem’ or otherwise pay the overdue amount, plus some costs and fees in order to avoid eviction. Receiving partial rent does not affect the eviction process, with some exceptions.
Do offer installment payments for otherwise responsible tenants
If you have tenants that are experiencing financial difficulties but are otherwise usually responsible, you may want to consider setting up an installment plan so that they can continue to live in their home and make payments on any rent owed. Basically, you’ll create a plan where the tenant pays their rent every month and then pays an additional amount to make up for back rent. An installment plan could be ideal for someone who was temporarily out of work for a month or two and now has regular income again, but not enough to pay all of the back rent upfront. If you choose to offer a tenant an installment plan, you should always put everything into writing just as you would with a lease.
Don’t take matters into your own hands
If you have tenants that are failing to pay rent, the last thing you want to do is to try to take matters into your own hands. You should always begin by contacting the tenants and providing them with the proper notice about rent due. After that point, if the rent is still not being paid, it may be in your best interest to employ the help of an attorney. There have been instances of landlords turning off the utilities to an apartment and other questionable actions that are not only unacceptable but also illegal. Do not attempt to force tenants out of their home with actions like these as they will most likely backfire on you.
Do take legal action when necessary
If you have a tenant, or multiple tenants, that owe back rent, you can and should take legal action. An experienced real estate attorney can help ensure that you are staying within your legal rights while collecting unpaid rent, as well as finding solutions where you will be paid the money that you are owed.
Reach Out to Morris Law Group
At Morris Law Group, our team of real estate lawyers commonly handle landlord and tenant dispute cases. Whether you have a tenant that owes a few months of unpaid rent, or a previous tenant who has since been evicted who still owes rent and fees, we can help. Reach out to our team of Edina attorneys today to get started with a consultation. Serving the Minneapolis, Saint Paul and Western Wisconsin, Twin Cities Minnesota metro area.