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Recovering Opex (rent ) in arrears without threatening Termination of Lease - options

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  • Recovering Opex (rent ) in arrears without threatening Termination of Lease - options

    Hi Everyone
    I have a tenant digging in their heels regarding the payment of Insurance. All 6 other tenants in our complex have done so as they do every year. I have sent letters, quoted the lease, had the lawyer send a letter explaining consequences and asking for payment within 10 days. Still ignoring me.

    It is possible these tenants want their lease terminated.

    How can we recover rent in arrears without threatening to terminate the lease ? Something that may prompt them to pay and would cost them in legal fees to deal with. I know this wouldn't lead to very good tenant / landlord relations , but these tenants have never been that easy to deal with (although they are long term tenants).

    Thanks in advance for any assistance.

  • #2
    Originally posted by redraspberry194
    Hi Everyone
    I have a tenant digging in their heels regarding the payment of Insurance. All 6 other tenants in our complex have done so as they do every year. I have sent letters, quoted the lease, had the lawyer send a letter explaining consequences and asking for payment within 10 days. Still ignoring me.

    It is possible these tenants want their lease terminated.

    How can we recover rent in arrears without threatening to terminate the lease ? Something that may prompt them to pay and would cost them in legal fees to deal with. I know this wouldn't lead to very good tenant / landlord relations , but these tenants have never been that easy to deal with (although they are long term tenants).

    Thanks in advance for any assistance.
    ADLS lease ?

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    • #3
      Do you have a personal guarantee?

      Take them to the Disputes Tribunal.
      Squadly dinky do!

      Comment


      • #4
        Better to do without the headache and have them out. Tell them you will change the locks. If they haven't paid on the ten days notice then you take them to court. If they don't attend court then they will have a bad record against them.
        Profiting from Property, not People

        Want free help on taking your portfolio to the next level?

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        • #5
          Originally posted by DaveW View Post
          Better to do without the headache and have them out. Tell them you will change the locks. If they haven't paid on the ten days notice then you take them to court. If they don't attend court then they will have a bad record against them.
          You can't just go and change the locks. There's legal notices etc. that have to be served first.
          Squadly dinky do!

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          • #6
            Originally posted by Davo36 View Post
            You can't just go and change the locks. There's legal notices etc. that have to be served first.
            Do you find that effective ?
            Profiting from Property, not People

            Want free help on taking your portfolio to the next level?

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            • #7
              Yep.

              Kicked them out, then took them to the Disputes Tribunal and got the solicitor's costs (for preparing Property Law Act notices), alarm and locksmiths costs, outgoings etc. Then got a really really good tenant in.

              But as I say, you can't just show up one day and change the locks, you'd be in for a world of hurt I reckon. They can claim you've interrupted their business, caused them loss of income etc.
              Squadly dinky do!

              Comment


              • #8
                Originally posted by Davo36 View Post
                Yep.

                Kicked them out, then took them to the Disputes Tribunal and got the solicitor's costs (for preparing Property Law Act notices), alarm and locksmiths costs, outgoings etc. Then got a really really good tenant in.

                But as I say, you can't just show up one day and change the locks, you'd be in for a world of hurt I reckon. They can claim you've interrupted their business, caused them loss of income etc.
                I said "TELL them you're going to change the locks". Look sometimes you have to dish them the same shit they dish out. I know two wrongs don't make a right but they owe money and likely to continue to be a nuisance. They only have to make a payment to delay your notices and then they can go back to being a non payer.
                Profiting from Property, not People

                Want free help on taking your portfolio to the next level?

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                • #9
                  Originally posted by Davo36 View Post
                  Yep.

                  Kicked them out, then took them to the Disputes Tribunal and got the solicitor's costs (for preparing Property Law Act notices), alarm and locksmiths costs, outgoings etc. Then got a really really good tenant in.

                  But as I say, you can't just show up one day and change the locks, you'd be in for a world of hurt I reckon. They can claim you've interrupted their business, caused them loss of income etc.
                  You do need to follow the legal process.

                  Comment


                  • #10
                    Originally posted by DaveW View Post
                    I said "TELL them you're going to change the locks". Look sometimes you have to dish them the same shit they dish out. I know two wrongs don't make a right but they owe money and likely to continue to be a nuisance. They only have to make a payment to delay your notices and then they can go back to being a non payer.
                    Yep, so the idea is to get them out rather than have to endlessly chase them.

                    I agree telling them you will change the locks is a good idea.

                    But if they ignore that, then serving notices has to be the next step right?
                    Squadly dinky do!

                    Comment


                    • #11
                      Originally posted by Davo36 View Post
                      Yep, so the idea is to get them out rather than have to endlessly chase them.

                      I agree telling them you will change the locks is a good idea.

                      But if they ignore that, then serving notices has to be the next step right?
                      Both methods would be done concurrently. Initiate the legal process in the first instance absolutely but don't tell them you're serving notices because that comes across as being too soft. Tell them you're locking them out if they don't pay up by next rent date. These things can escalate. You can threaten to charge them additional OPEX like property magenent.
                      Profiting from Property, not People

                      Want free help on taking your portfolio to the next level?

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