Tenancy agreement will state date of paying rental for every month and the mode of payment. Normally there are 2 situations when the tenant does not make payment for rental.
1. Lost contact with the tenant – this is a simple situation where landlord can just wait for him to contact or terminate the contract with immediate effect.
2. Able to contact with tenant who is still staying in the unit but tenant keep on delaying on the rental payment– this is a tougher situation where landlord may set the due date of payment and solution on the issue.
If condition is allowed, accept the delay for a few days which within agreed period.
Example: Set a deadline and inform the tenant if there is always delay in rental payment. The situation is always not beneficial to the landlord if there is any unpleased situation.
Normally landlord will collect 2 months of security deposit from tenant. Landlord should take action when the tenant do not pay 1 month rental and never agree to pay off rental by using the deposit. This is to avoid the situation when tenant leaving the house without notice and owner might need to pay all the repair fees of house and furniture damage.
* Situation 1: Lost contact with the tenant *
(Timing: Unable to contact with the tenant for more than 2 weeks and there is no payment for rental)
1. Leave a memo outside the rental unit and stated that action will be taken if no payment receive before a specific date (For example: If there is no payment made by XXX date, we will cut off the electricity and water supply or report to police to take back the unit). Capture photo of it and record the date.
2. If there is no reply, cut off or suspend the water and electricity supply (Or directly to the next step)
3. If there is still no reply from tenant, make a report at Police Station. Request companion from police or with the security to enter the house for inspection.
4. Only enter the rental unit with third party and take photo or video. This is to avoid tenant blaming the owner if they lost their things.
5. Check the rental unit condition (appliances and systems) and if the unit is still occupied. Besides that, check with neighbours on when they saw the tenant for the last time. Before leaving the unit, change the lock and leave a memo (with last date to clear off the house) with attach police report record copy.
6. Lastly, decide when to clear the unit if there is still not reply from the tenant.
* It is reasonable for landlord to enter the property and check is that any accident happens if the tenant lost contact for 2 weeks till 1 month.
* Do not enter the rental property before making police record.
* Situation 2: Able to contact with tenant who is still staying in the unit but tenant keep on delaying on the rental payment*
1. Call the tenant to chase for payment: If condition allowed, tolerate and set a due date of payment with condition (for example: cut off the electricity and water).
2. If the tenant agreed on the date and condition, request tenant to confirm by written message (sms or email).
3. Cut water and electricity supply: For condominium, landlord can inform the management to cut the supply until further notice.However, for landed property, landlord might need to apply it in SYABAS.
4. If the tenant remains staying in the unit, landlord needs to appoint lawyer to apply for court order and inform the tenant to move out according to law procedures.
* The most appropriate way is applying court order through lawyer and inform tenant to move out. The procedure is not time consuming.
*Basically, tenant will move out if the water and electricity supply is cut off. However, there are some tenants who will destroy the unit. In this case, landlord can only repair it by using the deposit and take it as a lesson.
*Settle the issue as soon as possible to avoid all the deposits are used up for unpaid rentals and in the end of the day landlord needs to bear for the repair fees.
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