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Letter of Demand Rental
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Letter of Demand Rental
A demand letter for unpaid rent prompts tenants to pay or face legal consequences.
- Promotes timely rent payment.
- Provides legal warning to tenants.
- Mitigates potential financial losses.
LETTER OF DEMAND FOR RENTAL
Summary A Letter of Demand for Rental may be used where rental is owed by a tenant, and has not yet been paid. A Letter of Demand requires the tenant to pay the rental and associated amounts due, failing which further action will be taken.
Why do I need a Letter of Demand? A Letter of Demand for Rental reminds a tenant of the amount that is due for payment, and gives the tenant a deadline for the payment. The demand notice warns the tenant of the legal consequences of ignoring the demand letter.
Who should use a Demand Letter for Outstanding Rent? If you rent out property and have a tenant that owes rent and/or associated amounts such as electricity, a demand notice may be used to call on the tenant to pay the amounts owed.
What does the demand letter say? The notice: Confirms the amount that is due; gives the tenant a deadline in which to pay; provides for the insertion of bank details into which the rental can be paid; generally cautions the tenant should the debt not be paid.
What does the Letter of Demand for Outstanding Rent look like? The letter can be printed onto one page.
What do you need to do to use the Letter of Demand?
- Read the final notice letter to ensure that it suits your requirements. Make changes as required.
- Make sure that you comply with the terms of your Lease Agreement and the law. Obtain legal advice if you’re unsure.
- Complete the relevant details, and send the notice for rental to the tenant.
- See also our Termination of Lease and Eviction notice
Also known as: Demand Letter; Final Notice
The overall Use and benefit of a letter of demand rental:
A letter of demand for rental payment (demand letter for rent payment) is a written document that a landlord sends to a tenant who has not paid rent on time and thus has overdue rent or unpaid rent. It is also known as a demand letter, rent balance letter, or letter for unpaid rent. This demand letter serves as a formal request to the tenant to pay the outstanding rent immediately.
The demand letter (also known as a rent balance letter) should be in writing and should include the tenant’s name, address, and the rental unit’s address (Tenant’s address), along with the total amount of rent owed (money owed) for the period in which the tenant failed in their obligation of paying rent, the due date, and the date the letter is being sent as well as the landlord’s signature. It should also reference the lease agreement and any applicable clauses related to non-payment or overdue rent within the contract.
A sample rent demand letter template should be complete and written in clear language, stating the amounts owed and the deadline for payment of the monies the they owe. The letter should also inform the tenant that failure to pay the outstanding balance will result in further action, which could include, penalties, the landlord approaching the court to initiate legal proceedings against the tenant or eviction from the rental unit thus terminating the lease, as well as any other relief offered by the court.
The demand letter template should be sent via certified mail to provide proof of delivery and the landlord’s attempt to contact the tenant regarding rent. The tenant’s signature or response is not required, but it is helpful if the letter is signed by the landlord to show that it was sent and that they did attempt contact prior to seeking relief such as eviction. The tenant may then choose to respond to the demand letter demanding the overdue rent but is not required to do so.
To assure further proof that the demand letter has been received by the tenant in respects of overdue rent, you may also stick a printed copy of the demand letter to the gate of the property under rent. It is also important to date these letters and keep copies of the letters as well as the date each was sent out.
In case of a dispute, the letter of demand is seen as the first letter, in writing, whereby a landlord formally request of rent to be paid under the lease contract and can serve as evidence that the tenant has been given due notice and was aware of the request for rent to be paid and the penalties for not paying rent for the property. It is important to keep records of all correspondence, including the letter of demand and any responses or payments made. Keeping such records will assist the landlord when seeking eviction of the tenant from the property/ premises via the court system, or any other relief offered by the court to the landlord.
An owner can send multiple demand letters to the individual who is behind on rent, these letters will serve as notice and proof of notice up until the date of the final letter, whereafter relief can be sought and a date of eviction can then be set.
A demand letter can also be sent to a tenant should the tenant have arrears utilities relating to the premises such as electricity or water, the demand letter is thus not just to recover rent arrears from tenants exclusively.
A tenant that is behind on rent and utilities is effectively in breach of the agreement and can thus expect to be subject to any letter setting out demands demands sent out by the landlord to address or discuss the arrears.
Generally, immediate payment of the outstanding rent owed to a landlord is requested by way of demand in a final demand letter for unpaid rent payment and can lead to legal action in accordance with the law being taken should rent not be paid immediately by the tenant.
Overall, a demand letter for rental payment is an important tool for landlords to protect their property and ensure that tenants fulfill their obligations under the lease agreement.
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