Handling Tenant Rent Arrears: A Legal Guide
When a tenant fails to pay rent or utility costs, the landlord must act strictly within the framework of the Law of Obligations Act (VÕS). Taking unilateral action, such as changing locks, is illegal and can lead to liability.
1. Formal Notice of Default
First, send a written notice to the tenant specifying a reasonable deadline for payment. According to VÕS § 316 (1), a landlord may terminate a lease agreement if the tenant is in arrears for at least three consecutive payment periods. It is crucial to document all communication.
2. Extraordinary Termination
If the tenant fails to pay by the deadline, you may terminate the contract extraordinarily. The notice must be in a format that can be reproduced in writing and must clearly state the reason for termination, the date of termination, and the requirement to vacate the premises. Ensure the notice is delivered in a way that proves receipt.
3. Debt Recovery
If the tenant refuses to pay, you should initiate a payment order procedure (maksekäsu kiirmenetlus) or file a claim in court. Do not attempt to evict the tenant by force or restrict access to the property, as this violates the tenant's rights and may result in legal consequences for the landlord.
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