Tenants in apartment management are not always good people.Some of them are nuisances and others who have constant troubles with their neighbors.In particular, the delinquency problem affects the cash flow of investors, so it must be dealt with immediately.
Let's aim for stable operation by reducing the risk of rent delinquency and troubles by taking measures against delinquent tenants and creating an environment where excellent tenants can live comfortably.
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Risk of rent delinquency in real estate investment
Continuing to live in arrears or disappearing will be a loss for investors.If you stay, you will lose the delinquency itself and the opportunity loss that you can't put in another tenant who will pay the rent.In addition, delinquent rent will be treated as uncollected and will be subject to tax payment.Also, if you go missing, you will have to pay for the disposal and cleaning of the items.In addition, it may be extremely difficult to deal with such cases if you are not used to such cases, as there may be cases where you will complain later that you disposed of it without permission.
Reduce rent arrears risk
If you think you are a delinquent tenant, do not let them move in.Carefully determine the address, age, occupation, work period, annual income, etc. during the occupancy screening, and refuse those who have the possibility.The joint guarantor will also be checked in the same way, including their address, age, whether they own a home, and their occupation.
In principle, it is better not to accept unemployed people as a joint guarantor to prevent future troubles.There is a contract method that does not require a joint guarantor.
The rent guarantee service pays a fixed fee and is a way to prepare for emergencies.However, since it is a burden for tenants, it may be difficult to attract tenants depending on the property.The rent guarantee service is a system in which about 50% of the rent is paid at the time of signing the contract, and even if the tenant fails to pay, the guarantee company will pay it, so it is a convenient service for the owner.
Record the fact of delinquency with content certification
If a tenant fails to pay their rent, even if it's just a single carelessness, let's deal with it.If you accidentally forget, you can give a sense of danger by calling out.If it continues for 1 months or 2 months, we will deal with it early, considering that it will be long-term.For those who are behind with their rent for several months, it is difficult to pay the rent itself in the first place, and there are many cases where they cannot continue to pay even after that, so there are many cases where it becomes a habit.
Specifically, we will send you a statement stating the facts by content-certified mail.Now you can prove that you are behind on your rent.The statute of limitations for non-payment of rent is five years, so it is important to confirm the facts and document them as soon as possible.Even if you have to file a lawsuit, you can make it a legally recognized document if you send it by content-certified mail.
Get the guarantor to cooperate
One way is to ask for the cooperation of a joint guarantor.There are methods such as having a joint guarantor take over, or contacting them directly and telling them to pay as soon as possible.In many cases, the joint guarantor is a parent, sibling, relative, etc., and it is surprisingly effective to get a shout out from relatives.No matter how many times the third-party owner or management company warns you, they only give you a sloppy attitude, but there are some weak people in your family, so it's worth a try.
However, the method of having a joint guarantor take over is not a fundamental solution.It is expected that the same thing will continue forever, so let's get them to contact us directly.If it is left as it is, the joint guarantor will also be burdened for a long time, so it is important to make the person pay properly.
Have the management company handle the collection
If you manage by yourself, you have to deal with all the bad tenants yourself.Such a mental burden is immeasurable, so it is best to entrust it to a rental management company in view of the human trouble risk and hassle.Since we will collect the money on your behalf, there is no need to confront directly, and the mental burden will be reduced.The rental management company is used to dealing with delinquent tenants, and will act as a dunning agency, so you can leave it to us with peace of mind.Also, as a point to be confirmed, let's check the rent delinquency guarantee at the same time.It is important to carefully check the contents of the contract as to how many months' compensation will be provided in the event of rent delinquency.
Last resort for rent delinquency, how to evict (forced eviction)
Reminders will be sent by content-certified mail, and evidence will be left.Furthermore, if you do not cooperate with the inspection of the building, it will be a violation of the Fire Service Act.Since verbally abusive or assaulting a neighbor is related to a crime, you can leave the evidence and file a damage report with the police.
There are methods such as entrusting these measures to the owner, entrusting them to a management company, or requesting a lawyer.If you can't solve the problem by responding in this order, one countermeasure is to ask a lawyer to take legal action, although it will cost a little more.
The court can make a judgment of surrender if you are delinquent for more than 3 months.In this case, the resident cannot refuse if the execution is forced.You can have your wages and pension income seized for delinquent rent.In addition, let's send the content-certified mail immediately if there is a delinquency even once.
Specifically, if there is no progress after following the steps below, the cancellation of the provisional rental contract will take effect, so you can proceed to a lawsuit for surrender.
Request over the phone, send proof of content, send a letter of demand, visit the house, etc. If there is still no progress, if there is no payment within the specified period after sending the proof of content or the letter of demand, the lawsuit will demand surrender. you can proceed to
By the way, the following documents are required for a surrender claim lawsuit:
- Real estate registration copy
- Fixed asset appraisal certificate
- Prepaid postage stamps
- Revenue stamp
- documentary evidence
- Representative certificate (in the case of a corporation)
As soon as a lawsuit is filed and a winning judgment is issued, the judgment will be served to the tenant, and after a meeting with the execution officer, compulsory execution will be carried out.
The court staff in charge of compulsory execution will evict the tenant, but all costs such as labor and truck fees will be borne by the tenant, and will be deducted from the money deposited with the court enforcement officer at the time of filing. put away.
Also, from the start of collection to this point, it has taken more than 5 months at the earliest, and the effort and anxiety are immeasurable.
risk of eviction
In addition to the burden of labor, attorney fees, and costs in the trial, if you are finally bankrupt, you will not be able to collect the arrears of rent or the costs incurred.Therefore, it is better to make a collection request contract with the management company in advance before the relationship with the lessee deteriorates to the point where you have to file a lawsuit to reduce the risk.From the perspective of the management company's staff, they are accustomed to dealing with malicious lessees, so in many cases collection can be done more smoothly than investors themselves.
Rent arrears risk is something that can happen to anyone when investing in real estate.Make sure you know what to do in case of an emergency and be prepared to act quickly.There is a way to leave all these correspondences to the management company, but the owner himself also remembers the mechanism and there is no loss.It's not a loss to remember the details of rent delinquency risk and be able to deal with it yourself.The most important thing about delinquency is that the owner himself shows a resolute attitude.
Summary of response to rent delinquency
- Delinquent rent is treated as accrued income and is subject to tax payment.
- Carefully determine the address, age, occupation, work period, annual income, etc. during the occupancy screening, and refuse those who have the possibility
- If a tenant's rent is delinquent, record it with content certification
- If you are late, ask your joint guarantor to cooperate
- Considering the trouble risk and hassle of collecting money, it is best to entrust it to a rental management company
- In the eviction trial, if you are behind in payment for 3 months, you can get a judgment of surrender.
At Rich Road Co., Ltd., we will consistently support all aspects of investment real estate, from complete beginners to experienced people, from a wide range of real estate selection, loan consultations, post-purchase management, and renovations.
