Unpaid Rent: How to Anticipate Issues and Deal with Them?

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Among the landlord’s greatest fears when renting their apartment or house, we find naturally that of having to deal with late payments or even unpaid rents. There are various good practices that allow, as a first step, to avoid these contentious situations. Besides, when it is too late to avoid unpaid rents and when debts have already been accumulating for several months, the owner is entitled to appeal to the competent authorities for compensation.

Our Tips to Avoid Unpaid Rents

Even before signing a lease, the owner can take preventive measures to reduce the risk of late payments. Concretely, it is always recommended to select a tenant with a reliable profile. In this sense, you should not accept to rent to someone without asking for backups: the latest pay slips or even recent rent receipts makes you feel more confident as a landlord. Feel free to ask this type of documents to any individual wishing to rent your property. This way, you ensure that their income is sufficient to pay for the rent – and that they are up to date on their current lease payments.

In parallel, you can purchase an insurance policy, which will save you money if your tenants do not respect their duties. As a matter of fact, insurers can pay you a compensation equivalent to the amount of the rent until the situation is regularized. This allows, for example, to offset the shortfall during legal proceedings, when the defaulter continues to occupy your property without paying his debt.

You can purchase an insurance policy, which will save you money if your tenants do not respect their duties. 

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In case of any delay in the rent payments, react quickly, and try to contact the tenant to ask for explanations. In some cases, the issues can be quickly and amicably solved. Nevertheless, in case of persistent reluctance, you will need to go through the court to get the money you are entitled to.

How to Sue a Tenant Who Does not Pay his Rent?

In order to launch a legal procedure, you must apply to the court of justice competent in your territory (Luxembourg, Esch-sur-Alzette or Diekirch, depending on the location of the accommodation).

Quickly enough, the court’s clerk will review your request and summon each party by mail. If the tenant does not show up on the indicated date, the case will be pleaded by default. If he comes, the pleadings will be postponed.

It is also to be noted that the justice of the peace is authorized to order emergency measures. To this purpose, he might require the intervention of an expert or fix a temporary rent, for example.

Following the judgement, the landlord might obtain a withholding on the tenants wage and get back the money he did not receive on due time, knowing that a foreclosure on the tenant’s assets can also be considered. If the situation is apparently not compatible with the continuation of the lease, the judge may decide on the forced eviction of the occupant.

Following the judgement, the landlord might obtain a withholding on the tenants wage and get back the money he did not receive on due time. 

Since this procedure is based on a simple request, it is inexpensive because there is no need to pay bailiff fees or even to resort to a lawyer. The landlord must simply provide for some expenses to copy the supporting documentation, attend the hearings and send registered mail to his tenant.


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