Rent collection

If you are a landlord and have not received payment for the use of the lease - typically rent and/or other income associated with the lease - this situation can end up as a rent collection case.

The purpose of rent collection is the same as traditional debt collection, where a debtor has not paid an invoice from a creditor. However, the collection process is different from traditional debt collection, which is why rent collection is not directly comparable to the type of debt collection you are familiar with if you are a business owner.

How rent collection works

When a tenant fails to fulfill their obligations - for example, by not paying rent - this is considered a material breach of the rental agreement. In such cases, the landlord has the option to terminate the lease.

If a landlord terminates the lease due to a material breach of the agreement, the lease is terminated. In practice, this means that the tenant must vacate the premises. However, this requires that the tenant has previously been notified in a demand letter and has been given a payment deadline of at least 14 days. This is similar to the debt collection notice in a traditional debt collection case, where the payment deadline is only 10 days.

If the tenant still does not pay within the 14 days and thus does not meet the payment deadline, the landlord can terminate the tenancy - but not before. If the tenant pays within the deadline, they have the right to stay.

When the lease is terminated, it is a requirement that the tenant vacates immediately, as there is legally no longer a tenancy between tenant and landlord.

If the tenant vacates immediately after the termination, a so-called moving inspection must be carried out. The purpose of the relocation inspection is to review the property, record its condition and assess any damage or defects.

The rent due and any renovation costs can be deducted from any deposit paid. If the deposit does not cover the full amount, the landlord has a financial claim against the tenant. This claim is similar to an ordinary invoice claim and can be recovered either through self-collection or third-party collection with the help of a debt collection agency or a debt collection lawyer.

Eviction proceedings with the help of the bailiff

It happens from time to time that a tenant chooses to stay even though the legal deadline has passed, the lease has been terminated and the tenant should have vacated.

In such cases, the landlord needs the help of the bailiff to evict the tenant. This is often referred to as an eviction hearing or a bailiff's hearing.

To evict a tenant, the landlord sends a request to the enforcement court, which is sent to the tenant at the same time.

The eviction is then carried out by the bailiff coming to the tenant's address - possibly with a locksmith, lawyer and police. If the tenancy is locked, the locksmith will provide access.

Once the lease is available, it will be reviewed and assessed. If there are assets that can be seized to cover the arrears to the landlord, this can be done in connection with the eviction.

Read more about eviction business