Dealing with rent in arrears

You don’t have have to worry too much about it if you have appointed a property management company to do the management on your property but if you do the management by yourself, you may face rent collecting problems like late payment. If a tenant shows no sign of willingness to pay rent and still lives as if there was no issues, you may take legal actions such as “Canceling lease contract”, “Seizing”, or “Asking evacuation”.

If this kind of thing is happening in your apartment, we recommend that you should talk to special advisors.

1. Demanding or urging via phone call

Make a phone call to the tenant if he/she fails to pay on time.
If there is still no payment made after multiple phone calls, try No.2 immediately.

2. Contacting the co-signer

Contact the co-signer to demand the payment.
Co-signer cannot just say, ” please receive money from the debtor” since co-signer is also in the same position. In some cases, asking evacuation would be necessary. If co-signer is not willing to pay, move on to No.3.

3. Sending contents-certified mail

Send contents-certified mail to both the tenant and the co-signer and demand the payment again.
It’s important because it can be an evidence in court.

4. Filing a law suit

Your final action would  be fling a law suit.
If the amount of rent in arrears is less than 600,000JPY, it will be a small claim action in a summary court. A summary court is convenient because they give you the court judgement on the very same day. If the amount is more than 600,000JPY, it will be a normal claim. Filing a law suit would not always promise you a win. It may be the best to talk peacefully before going to the court with spending money and energy.

 


Dealing with rent in arrears
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