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Your Tenant is Delinquent – Here’s What To Do Next

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Having a tenant leave your property owing unpaid rents, unpaid damages, or other leftover bills and responsibilities is certainly no picnic! It can be costly, exhausting, difficult and time consuming to pursue former tenants for unpaid debts.

Here are some ways that you can be proactive:

  • Always have a solid tenant agreement in place that spells out all rights & responsibilities for both parties.
  • Always have your agreements legally reviewed to ensure nothing is left to chance.
  • We suggest that you be sure to include a clause like the one below in whatever lease agreement you use. When it comes to debt collection, this will ensure that you can recover any collection costs that are incurred along with the unpaid balances. Here’s the sample clause:

“Should my account(s) become in default my account may be assigned to a credit bureau/collection bureau for collection and/or court proceedings and I may further be charged with collection fees, legal fees, and/or court costs to be recovered on an indemnity basis.”

At the end of the term such agreements there’s a good chance that, despite your best efforts, a tenant will leave unpaid balances with you. Alternatively, they may even default on the rental agreement during the rental cycle and you will have to evict them.

If that happens, contact CINCB immediately to list the debt with us for collection.

If the tenant gives you a cheque payment that returns to you, they should be willing to resolve the matter in full or make an agreeable payment plan with you. If they do not undertake these efforts in good faith, contact CINCB immediately. You will be able to list the return cheque with us for collection. Our experts will work diligently to resolve the delinquency. This also removes from you the burden of pursuing the debt.

With CINCB, you can make the most of an uncomfortable tenant relationship.

 

Contact us today to get help collecting your unpaid tenant balances.

Have more questions?  See our FAQs here for answers right now.


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