What to do if the tenant does not pay the rent and does not reply to messages? This situation can cause stress or even financial worries as a landlord.
If the tenant has not paid the rent, but responds to messages, there is more hope of continuing the tenancy. More serious follow up can take a lot of time and effort, so it is still worth trying to contact the tenant.
If a tenant doesn't pay the rent and doesn't respond to messages, it's often due to more persistent problems, such as insolvency. If this is the case, you should deal with the situation in accordance with the law and your interests.
Read our concrete advice on how to deal with the situation, from the first attempt to contact the tenant to terminating the tenancy agreement and applying for eviction.
If it's the first time you've been a week or two late with your rent, it's not necessarily cause for concern. It is in your best interests to approach the situation calmly and with an open mind. At the same time, find out about the laws, obligations and responsibilities that apply to the landlord and tenant.
There is no precise definition in the law of how long or how often rent can be overdue. However, according to the Tenancy Act, the tenant must pay on the agreed due date and, if the rent is overdue, the landlord is entitled to charge interest on arrears (Interest Act 633/1982). You can send a reminder 2 weeks before the due date, and after 2 weeks you can follow up the reminder with a demand for payment. If the rent is overdue by 2 months or more, or continuously, you can apply for a rent adjustment.
Termination of the tenancy agreement by the landlord is possible when the tenant fails to pay therent (Room Rent Act 481/1995, § 61), which in practice is the case law of 2 months of unpaid rent or persistent late payment.
Landlord's rights:
Landlord's obligations:
Tenant's rights:
The tenant's obligations:
Often this is a human error or a temporary challenge that can be resolved through open communication. The tenant may have forgotten the due date due to a hurry or other reason. Unexpected expenses or late payment of wages may temporarily affect the ability to pay. Bank delays or breakdowns in payment systems may delay the arrival of the payment.
This can be a long-term insolvency, caused for example by poor employment prospects, serious illness, or debts. The reason for late payments is usually temporary and mild, so please be discreet.
If the tenant is not paying the rent but is responding to your communications, the situation is probably still manageable without more serious action. Whether it is the first time the rent is overdue by a couple of days, or several times a week, it is best to be discreet in the first few contacts. So it is not a good idea to ask directly about ability to pay, although this is the most important thing as a landlord.
Try to contact the tenant to find out why the rent is repeatedly late or has not been paid for several weeks. Start with a text message or email before calling or trying other methods of contact available to you. Give them at least 24 hours to respond before trying the next method of contact.
Listen to the tenant's explanation and use it as a basis for deciding how to proceed as a landlord. Keep a record of all contacts and agreed actions for future reference.
Here are key questions for you as a landlord:
For example, you could say, "Hi [tenant's name], I noticed that this month's rent hasn't arrived yet. Is everything okay?"
If the tenant is facing a short-term financial hardship, you can grant a grace period to pay the rent at no extra cost.
If the solvency problem lasts longer, you can work out a payment plan together to deal with the rent arrears. The purpose of a payment plan is to allow the tenant to pay the rent arrears in instalments, for example in smaller monthly instalments or through several instalments.
As a landlord, you can be sure that payments will continue, even if they are sometimes late.
Make the payment plan realistic.
1. Have an open discussion:
2. Set clear conditions:
3. Written contract and conditions:
This payment plan is made on [date] and is agreed between the tenant [tenant's name] and the landlord [landlord's name] in respect of unpaid rent for the period [period].
Signatures
[Tenant's name]
[Date]
[Landlord name]
[Date]
When a tenant fails to pay and does not try to sort things out with you, there is cause for concern. This situation understandably causes stress as it can affect your financial situation as a landlord. At this stage at least, it is essential to keep accurate records of rent payments, arrears and all interactions in case you need to take legal action later.
Let's look at the law on room rent (1995/481) and how it is applied in practice:
You should send a demand for payment or a request for payment and be prepared for the possibility that you may have to terminate the tenancy agreement and charge arrears of rent.
A payment reminder is usually the first formal step, where the landlord reminds the tenant of unpaid rent and gives a new payment schedule. It is a more friendly reminder before taking more drastic action.
If the tenant does not answer your calls or messages, send a proof of payment, for example by registered letter. The payment reminder must include:
An example of a request for payment:
"Hi [tenant's name], I notice that the rent for [months] is still unpaid. Please make the payments due by [date]. Please contact me promptly with the reason if you are unable to pay by this date."
If the request for payment is not successful, the next step is to send a request for payment. A demand for payment is a more stringent measure, clearly stating that failure to pay will lead to serious action, such as recovery, termination of the lease or even eviction.
In a payment claim, the landlord has the right to charge the tenant a collection fee, which may be higher than the 5 euro reminder fee allowed in the payment notice. It also serves as proof that the landlord has given the tenant the opportunity to pay before taking more drastic action such as recovery, termination of the lease or eviction.
This puts more pressure on the tenant to pay the overdue rent before additional costs are incurred. You can make the payment claim yourself, or if you prefer, you can contact a debt collection agency at this stage.
Example of a payment claim:
"Dear [tenant's name], the rent for [months] is outstanding for a total of [amount] euros. Please pay the outstanding rent and interest on arrears by [date]. If payment is not made by the due date, terminate the tenancy agreement, use a debt collection agency to settle the debt and apply to the district court for eviction."
Formal collection can motivate the tenant to pay. Professionals will know how to handle the situation properly, which will reduce your own stress.
When the tenant has not responded to messages or even to a payment request, the next step is to consider termination of the lease by the landlord. Termination of the lease is a serious action that should be taken carefully and in accordance with the law.
Free lease termination forms can be found online, such as on the website sijoituskohde.fi.
As a landlord, you have the right to terminate the tenancy agreement if the tenant fails to pay the rent for a long enough period or breaks the terms of the agreement.
Even if the tenant does not move out, you are not allowed to change the locks or otherwise prevent the tenant from entering the property. The tenant has the right to pay the rent due before the date of the notice of demolition, in which case the demolition will lapse.
Draw up a written notice of termination, explaining the termination and the reasons for it. Be sure to include the following information:
Evidence of the delivery of the notice of demolition to the tenant must be provided. This means that you must have proof that the tenant has received the notice. For example, you can use a registered letter or a bailiff.
If the tenant does not leave the property after the notice of eviction, you will have to apply to the district court for a formal eviction. The eviction process is strictly regulated and must be done in accordance with the law.
You can't make a marriage decision on the basis of self-inflicted injuries. So do not change the locks without permission, or otherwise prevent access to the dwelling. Also, do not remove the tenant's belongings, as you may be liable for damages.
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