LANDLORD’S DILEMMA: Tenant not paying rent? Know your options

financialexpress.com:

Real estate investment primarily serves two purposes to many people. One is to live in the house with your family, and the second is to earn some income from it if you are not occupying it. When you rent out your property, you wish to make some money or use it to help repay your existing loan in case of a mortgage. However, there are many disputes which may arise when you rent out your property — the most common is when a tenant refuses to pay you the rent or delays it. As a landlord, it is crucial to know your rights and the legal options available to you when faced with such a situation.

What can landlords do when their tenants refuse to pay rent?

The first step is to carefully review the rental agreement signed between you and the tenant. The agreement should clearly outline the terms and conditions of the tenancy, including the rental amount, due date, and consequences for non-payment. This document will serve as the foundation for any legal action you may pursue.

It helps recover the money in case of unpaid rent. Landlords commonly collect a security deposit from tenants before they move into a rented property. This deposit acts as a form of security against any damages or unpaid rent during the tenancy period. The amount of the security deposit is typically equal to two to three months’ rent, although this can vary depending on the agreement.

Adhil Shetty, CEO, Bankbazaar.com, says, “Security deposits provide landlords with financial protection against non-payment of rent or damage to the property caused by tenants during the tenancy. The requirement of a security deposit or rental bond encourages tenants to take care of the property and fulfil their obligations under the rent agreement. On the other hand,