Owning an investment property is a strategic move to build wealth and meet financial goals, but it comes with inherent risks. Tenant behaviour is a critical factor in maintaining property stability. Instances of illegal activities or non-payment of rent by tenants can be costly and pose challenges in meeting financial obligations. Read on for guidance on what to do if your tenant violates rules or defaults on rent payments.
- Adhere to Local Laws on Overdue Rent: Each jurisdiction has specific laws governing overdue rent. Regardless of your property’s location, it is essential to follow the correct timeline and inform the tenant of rental arrears using the appropriate forms from the relevant tenancy authority. If a breach notice fails to prompt rent payment, you may need to consider terminating the tenancy.
- Terminate Tenancy According to Regulations: Just as issuing a breach notice for overdue rent requires adherence to timelines and forms, terminating a tenancy also follows a specific procedure. Keep in mind that the tenancy is not officially terminated until the tenant vacates the property and returns the keys. If the tenant refuses to vacate, legal action may be necessary through the relevant court or tribunal.
- Distinguish Between Breach and Illegal Activity: Breaches occur when a tenant fails to adhere to the agreed-upon terms, such as non-payment of rent, subletting, or making significant unauthorized changes. In such cases, a breach notice is issued to prompt corrective action or eviction. Landlords have the right to evict tenants immediately without notice in cases of illegal activities like drug-related offenses, abuse, harassment, domestic violence, or storing stolen goods. Report unlawful activities to the police for resolution.
- Prevent Issues with Quality Tenant Selection: The most effective way to mitigate problems is to secure a quality tenant from the start. Collaborate with your property manager to enhance the property’s appeal to desirable tenants. This may involve implementing recommended improvements, such as carpet replacement or wall painting. During the application process, thorough due diligence by the property manager ensures that the tenant is reliable and will fulfill their rental obligations.
- Seek Professional Advice: When faced with tenant violations, it can be a stressful experience. Following the guidelines outlined in your jurisdiction’s tenancy laws is crucial to legally address and resolve issues promptly. Work closely with your property manager to navigate these situations effectively. Remember, this article provides general information and does not constitute financial or legal advice. Always consult with your professional financial and legal advisors before making decisions.
