What options are available to the landlord?
From a Belgian law perspective, in a rent arrears scenario, the landlord could pursue either of the following courses of action:
(i) Belgian law leases typically provide that rent arrears trigger delay interest. In some cases, such interest accrues automatically, whereas other leases provide that the interest will only start to accrue after the landlord has put the tenant on notice and afforded the tenant a right to cure. Such clauses are valid from a Belgian law perspective.
(ii) Most leases provide for a rental guarantee to be constituted by the tenant by way of guarantee of compliance with the tenant's payment obligations under the lease. Failure to pay the rent would typically constitute grounds for the landlord to call on the guarantee. If the lease provides for a parent guarantee, the landlord may pursue the guarantor.
(iii) As a first action, prior to seeking judicial recourse, the landlord would have to put the tenant on notice by way of a formal default notice (mise en demeure / ingebrekestelling), affording the tenant the chance to cure the breach.
(iv) If the tenant fails to pay the arrears after having been put on notice, the landlord could seek termination of the lease as a result of the tenant’s breach. In this case, the tenant's exposure would typically be:
(v) If the tenant fails to pay the arrears after having been put on notice, the landlord could seek the specific performance of the lease. In this scenario, the judge could grant such specific performance, so that the tenant would be held to continue to honor its lease obligations (specifically the rent payment obligation).
The landlord has several options depending upon the specific circumstances and what the landlord wants to achieve.
Security deposit: The deposit is usually paid in advance along with the first month's rent, usually in the amount of one monthly rent.
A landlord may cancel the lease agreement if the tenant does not pay the rent within 15 days after the landlord called him to pay. A landlord can cancel the lease agreement if the object of lease is subleased without his permission, if sub-lease requires approval from the landlord, the permission is required in accordance with the lease agreement.
Court proceedings to recover debt over rent: A landlord can initiate court proceedings against the tenant to recover rent or other sums due under the lease. The process can be expensive and protracted. A court hearing may not be set for several months, and the tenant may not feel any pressure to pay the arrears in this period.
There are several options available to the landlord depending upon the specific circumstances and what the landlord wants to achieve.
Court / arbitration proceedings to recover debt: A landlord can initiate court or arbitration proceedings against the tenant pursuant to the lease agreement, to recover rent or other sums due under the lease. The process can be expensive and protracted. A court or arbitration hearing may not be set for several months and the tenant may not feel any impetus to pay the arrears in this period, unless the landlord applies for property preservation measures during the lengthy proceedings.
Draw down on rent deposit: The landlord may be able to draw down from a rent deposit if one exists to recover the rent arrears or other sums due under the lease. In such cases, the lease agreement typically stipulates that the tenant must replenish any shortfall in the rent deposit.
Pursue guarantor: The landlord may be able to recover rent arrears and other sums due under the lease from any guarantors under the lease, subject to certain limitations.
Termination: Under the PRC Civil Code, in the event that a tenant fails to pay rent or delays in doing so, the landlord may request payment within a reasonable time frame. Should the tenant still fail to pay the rent thereafter, the landlord may terminate the lease. Additionally, a lease agreement usually stipulates a termination right for the landlord to terminate the lease if the tenant breaches certain obligations (such as rent payment obligations) as set forth in the lease agreement.
There are several options available to the landlord depending upon the specific circumstances and what the landlord wants to achieve.
Demand for payment, termination (for breach) and bailiff's court: The landlord is entitled to terminate the lease (for breach) as a consequence of late payment if the tenant has not paid the outstanding amount within three days of having received a written demand for such payment.
The landlord's demand must be made after the last due date for payment, include a detailed statement of the owed amount and must expressly specify that the lease may be terminated if the outstanding rent is not paid before the expiry of the time limit.
If the tenant does not pay within the specified period and the landlord terminates the lease, the tenant must vacate immediately. However, a landlord often grants the tenant at least one week to vacate.
If the tenant does not vacate voluntarily, the landlord can bring the case to the bailiff's court to have the tenant evicted from the premises.
Pursue guarantor: The landlord may be able to recover rent arrears and other sums due under the lease from any guarantors under the lease either by way of a contractual guarantee or under the privity of contract rules, subject to certain limitations.
Court proceedings to recover debt: The landlord can issue court proceedings against the tenant to recover rent or other sums due under the lease. The process can be expensive and will often take 1-2 years if the so-called ‘small claims process’ is not applicable (claims of no more than DKK 50,000). The tenant may not feel any impetus to pay the arrears in this period. Thus, serving a demand for payment and specifying that the lease may be terminated if the outstanding rent is not paid before the expiry of the 3-day time limit, may be more appropriate.
Insolvency proceedings: If the tenant has failed to pay rent or other sums due under the lease, the landlord may commence insolvency proceedings, provided that the tenant is considered ‘insolvent’ in accordance with the Danish Bankruptcy Act (unable to meet its liabilities as and when they fall due, unless such inability must be deemed to be only temporary). The landlord should as a main rule terminate the lease due to failed payment and demand that the tenant vacates before potentially commencing insolvency proceedings.
There are several options available to the landlord depending upon the specific circumstances and what the landlord wants to achieve.
Please note that prior to any procedure or implementation of a rental guarantee, it is recommended to send a formal notice to the tenant requesting compliance with his contractual requirements and to try to find an amicable solution.
Once the lease is terminated, the landlord should have a debt recovery plan, as some collection methods may no longer be available after the lease ends.
In the event of rent arrears, the landlord has the option to send a default notice to the tenant. However, this is not required by law.
Moreover, it can be in the interest of the parties to discuss the reasons for the rent arrears and, depending on the circumstances, to reach an agreement under which the lease agreement can continue, and the rent arrears are reduced.
If the tenant is in default of payment of the whole rent or a significant portion of the rent for two consecutive payment dates, the landlord also has an extraordinary right of termination for good cause. The tenant can be assumed to be in default for payment of a significant portion of the rent, if the arrear exceeds one month’s rent. This right of termination also applies if the period of rent arrears extends over more than two payment dates, and the tenant is in arrears with the payment of an amount equal to the rent for two months. In this case, the arrears consist of more than two payment dates. The extraordinary termination is invalid if the tenant can offset against claims that came into existence before the notice of termination was received and that cover the whole rent arrears. Furthermore, the extraordinary right of termination is excluded if the landlord is satisfied in full and before the tenant receives the notice of termination. The termination must be declared in writing, stating the reason for the termination.
Additionally, the landlord can file a lawsuit for payment of the outstanding rent. In case that the landlord has demanded a notarial declaration of submission (notarielle Unterwerfungserklärung) from the tenant, direct enforcement can also be carried out with regard to the outstanding rent or an eviction. This is drawn up the notary and serves to simplify the execution for future enforcement proceedings. This is to ensure that all agreed obligations are adequately met. The notarial declaration of submission allows debts to be enforced without prior court proceedings. In practice, notarial declarations of submission are rarely used.
If a rent deposit or another form of rental security has been provided, the landlord may also use the security to satisfy outstanding rent payments.
Furthermore, the landlord is entitled to a landlord’s lien unless this has been excluded in the lease agreement. If the tenant is in arrears with the payment of rent, the landlord can therefore obtain an enforcement order for the handover of the pledged items and obtain satisfaction by liquidating the items.
Forfeiture: Forfeiture is a statutory remedy that lets a landlord terminate a tenancy and recover possession when rent stays unpaid for more than 15 days after the due date; this 15-day grace period is implied by law. Under section 117(3) for domestic tenancies created on or after 27 December 2002 and section 126 for non-domestic tenancies, the Landlord and Tenant (Consolidation) Ordinance automatically inserts both a covenant to pay rent on the due date and a condition for forfeiture, even if the lease is silent. Once forfeiture is triggered, the tenant may seek ‘relief from forfeiture’ by clearing all arrears and costs within a time fixed by the court under section 21F of the High Court Ordinance, a discretion the court will normally grant only once during the duration of the tenancy agreement unless good cause is shown. This ensures that landlords can act against persistent default while preserving a limited safety-net for genuine hardship cases.
Court Proceedings to Recover Debt: A landlord may initiate court proceedings to recover unpaid rent once essential statutory conditions—such as proper stamping and, for domestic tenancies, submission of Form CR109 under the Landlord and Tenant (Consolidation) Ordinance (Cap. 7)—are satisfied. While this legal process offers an enforceable path to judgment and debt recovery, it can involve significant costs and lengthy timelines, so is typically pursued only after other collection methods prove unsuccessful.
Statutory Demand and Insolvency Proceedings: If a tenant fails to pay rent or other sums due under a lease, the landlord may serve a statutory demand to compel payment. This remedy is available against both corporate and individual tenants, though under different legal regimes. For corporate tenants, a statutory demand under section 178 of the Companies (Winding-up and Miscellaneous Provisions) Ordinance (Cap. 32) requires payment of HK$10,000 or more within 21 days, failing which the company is deemed unable to pay its debts and may face a winding-up petition. For individual tenants, a similar 21-day demand can be served under section 6A of the Bankruptcy Ordinance (Cap. 6), after which the landlord may petition for bankruptcy. However, statutory demands are inappropriate if the debt is genuinely disputed, in which case formal court action may still be necessary despite its higher cost and longer timeframe.
Distress Warrant in Hong Kong: A distress warrant is a statutory remedy under Part III of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7) that allows a landlord in Hong Kong to recover rent arrears by seizing and selling a tenant’s movable goods found on the leased premises. The landlord must apply ex parte to the District Court for the warrant, which, if granted, authorises bailiffs to enter the premises without notice and seize goods equal in value to the arrears—provided the tenancy is still in force and the goods belong to the tenant. Distress is limited to rent due within the past 12 months and is no longer available once the tenancy has been forfeited. Certain items, such as essential “tools of the trade” are exempt, and goods owned by third parties cannot be seized. As distress is executed covertly, it prevents removal of assets and offers a quick enforcement option, though it must be used strictly in accordance with the law to avoid liability.
Drawing Down on a Rent Deposit in Hong Kong: Under Section 120AAZC of the Landlord and Tenant (Consolidation) Ordinance (Cap. 7), a landlord may deduct from the tenant’s rental deposit—capped at two months’ rent—any unpaid rent resulting from the tenant’s breach of the tenancy agreement. The remaining balance of the deposit must be returned to the tenant without interest. However, such deductions do not automatically cancel or discharge the tenant’s full liability, meaning the tenant may still be responsible for any outstanding amounts beyond the deposit.
Pursuing Guarantors or Former Tenants: When a tenant defaults on rent, landlords may seek recovery from guarantors or former tenants who remain liable. A guarantor assumes personal liability if the tenant fails to fulfil obligations. Meanwhile, a former tenant can remain responsible for rent arrears under the principle of privity of contract, particularly if they were the original contracting party.
Security deposit: When defining the terms of the lease agreement, the parties usually agree on a security deposit payable by the tenant in order to ensure that the landlord has sufficient security in the event of default or non-payment. It is normally set at two months' rent, and if the amount exceeds three times the monthly rent, it can be reduced by the court on the tenant's application.1 The landlord may deduct the amount owed by the tenant from the security deposit if the tenant is in default, or if the tenant is in breach of any contractual obligation under the lease agreement.
Termination of the lease agreement: Pursuant to the Civil Code, in the event of non-payment of the rent (or of any other costs and charges payable by the tenant), the landlord has the right to terminate the contract provided that the landlord has given the tenant a notice to pay, setting a reasonable deadline and warning of the consequences, and the tenant has not paid by the end of such deadline.2
Statutory pledge: The landlord has a statutory pledge over the tenant's assets for the amount of the rent and service charges owed, for as long as the tenant's assets remain in the property. This means that the landlord can withhold those assets and, ultimately, satisfy its claim by selling such assets.3
Order for payment procedure4: The landlord can also initiate a so-called order for payment procedure, which is a non-contentious procedure before a notary public and is specifically designed to enforce overdue money claims. The only way to enforce a claim for money not exceeding HUF 3 million is by means of an order for payment procedure, which is the procedure most often used by landlords against tenants who have accumulated debts. However, an important rule is that this procedure cannot be used if the parties do not have a domicile or residence in Hungary, so for foreign tenants who do not have a domicile or residence in Hungary (ie an address card), this procedure will not be available. In such cases, a European order for payment procedure shall be initiated.
The European order for payment procedure covers overdue monetary claims in cross-border civil and commercial matters. For the purposes of the procedure, a matter is deemed to be of a cross-border nature if at least one of the parties resides or has his habitual residence in a Member State other than the Member State where the court (in Hungary, the notary) is located (with the exception that a European order for payment procedure cannot be started in Denmark). Unlike the Hungarian order for payment procedure, in these cases claims can be enforced regardless of the value of the claim.
In the case of an order for payment, a procedural fee of 3% of the amount of the claim must be paid in order for the procedure to start. If the tenant objects to the payment order sent to him by the notary public within 15 days, (ie disputes the existence of the debt on any grounds), the payment order procedure is converted into a judicial procedure before the civil courts, in which case additional costs will incur. If the tenant does not object to the order for payment and it becomes final, the debt can be recovered by enforcement proceedings.
In the case of a lease agreement incorporated in a notarial deed: A lease agreement incorporated in a notarial deed has special force of evidence and is directly enforceable provided that certain other conditions are met. This means that if the tenant fails to pay the rent (or service charges) or refuses to move out of the property after the lease agreement has been terminated, the landlord does not have to initiate court proceedings (or to initiate an order for payment procedure) to enforce its claim or evict the tenant. In order to enable the landlord to enforce its rights quickly and effectively, the notary will add an enforcement clause to the agreement, allowing the enforcement officer to collect the debt directly or even evict the tenant with the assistance of the police. The general rules apply in relation to rent and service charge arrears, ie the landlord can enforce his claim within a limitation period of 5 years. In addition to the debt, the landlord will also be entitled to interest on arrears for the period of the delay resulting from the non-payment.
1Act V of 2013, 6:343. §
2Act V of 2013, 6:336. § (3)
3Act V of 2013, 6:337. §
4Act L of 2009 on the rules of the order for payment procedure; Regulation (EC) No 1896/2006 of the European Parliament and of the Council of 12 December 2006 creating a European order for payment procedure.
There are several options available to the landlord depending upon the specific circumstances and what the landlord wants to achieve.
Forfeiture: Also known as re-entry, forfeiture is the landlord's right to determine the lease in certain circumstances specified in the lease. Whilst the forfeiture provisions will vary from lease to lease typically a lease can be forfeited where the tenant is in breach of any of its obligations under the lease, an event of insolvency on the part of the tenant has occurred or on the occurrence of certain events specified in the lease, such as non-payment of rent The tenant may obtain relief from forfeiture if it remedies the breach of the lease .If the landlord forfeits, it should also have a plan to recover the debt if the tenant does not apply for relief from forfeiture.
Court proceedings to recover debt: A landlord can issue court proceedings against the tenant to recover rent or other sums due under the lease. The process can be expensive and protracted. A court hearing may not be set for several months and the tenant may not feel any impetus to pay the arrears in this period.
Draw down on rent deposit: The landlord may be able to draw down from a rent deposit if one exists to recover the rent arrears or other sums due under the lease.
Pursue a Guarantor: The landlord may be able to recover rent arrears and other sums due under the lease from any guarantors under the lease.
There are several options available to the landlord depending upon the specific circumstances and what the landlord wants to achieve.
Interest on arrears: without prejudice to the landlord's right to terminate the lease contract, any delay in the payment of the rent and/or service charges due can result in the application of interest on arrears. Interest rates are usually determined on the basis of two legal parameters: (i) legal interests, and (ii) interests for late payment in commercial transactions. It is customary that the parties agree on a given rate plus certain additional basis points.
"Solve et repete" clause (or self-help right): it is market practice for the parties of a commercial lease to convene that the payment of the rent and/or the service charges may not under any circumstances be suspended, deferred or compensated by the tenant, even if the latter has rights or claims against the landlord, which shall be pursued by means of a separate proceedings and only after the duly fulfilment of the tenant's payment obligation vis-à-vis the Landlord.
Securities: the landlord usually is provided with (i) an interest-bearing cash deposit, (ii) a “first demand” bank guarantee, or (iii) a parent company guarantee, on which it can rely in case of breach by the tenant of its payment obligations under the lease agreement.
Termination clause: Property leases usually contain a termination clause identifying the lease provisions whose breach will result in the landlord’s right to terminate the lease contract upon simple notice, without prejudice to further damages. Such clause usually provides for a “cure period” during which the tenant can rectify the breach of contract in order to avoid the lease termination.
Injunction to pay the rent: in case of the tenant's failure to pay the rent and/or service charges due under the lease agreement, the landlord can request the competent judicial authority to issue an injunction to pay the relevant amounts due (and pay the relevant interests in case of late payment) and, in case of termination for default, to issue an eviction summons for the release of the property.
There are several options available to the landlord depending upon the specific circumstances and what the landlord wants to achieve.
Court proceedings to recover debt: A landlord can issue court proceedings (the Ordinary Proceedings) against the tenant to recover rent or other sums due under the lease agreement. The Ordinary Proceedings can be expensive and protracted. A court hearing may not be set for several months and the tenant may not feel any impetus to pay the arrears in this period. Issuing a Small Claim Proceedings (which are available for a matter whose value of litigation is JPY 600,000 or less) or application for Demand for Payment Proceedings (shiharai tokusoku) may be more appropriate.
Small Claim Proceedings will require only one court hearing so it saves the time and costs. However, if the tenant requests that the Small Claim Proceedings be transferred to Ordinary Proceedings, the Small Claim Proceedings will be transferred to Ordinary Proceedings.
Demand for Payment Proceedings will not require attendance at the court (no court hearing, only documentation proceedings) so it saves time and costs. However, if the tenant lodges an objection, the Demand for Payment Proceedings will be transferred to Ordinary Proceedings.
Draw down against security deposit (shikikin): The landlord may be able to draw down against a security deposit if one exists under the lease agreement to recover the rent arrears or other sums due under the lease agreement.
Pursue guarantor: The landlord may be able to recover rent arrears and other sums due under the lease agreement from a guarantor if one exists under the lease agreement.
In the Netherlands, several options are available to landlords when dealing with rent arrears, depending on the circumstances and the landlord's objectives:
Termination of the lease and eviction of the tenant: If a tenant fails to pay rent, the landlord can initiate legal proceedings to terminate the lease and evict the tenant from the leased premises. Before doing so, the landlord will generally send a formal notice of default (ingebrekestelling), granting the tenant a reasonable period—usually 14 days—to pay the outstanding rent. If the tenant fails to pay within this period, the landlord can commence court proceedings to request termination of the lease and eviction from the leased premises. Dutch courts generally adopt a cautious approach and typically require that the tenant is in arrears of at least three full months' rent before granting eviction. Even then, judges may offer the tenant a final opportunity to settle the arrears to avoid eviction.
Court proceedings to recover debt: A landlord can start legal proceedings to recover rent arrears, late payment interest, and associated costs.
Penalty clauses: Most standard lease, including those based on the widely used ROZ (Real Estate Council of the Netherlands) model leases and general terms, include a penalty clause (boetebeding). Under these provisions, tenants in default of payment are liable not only for the arrears and statutory commercial interest (wettelijke handelsrente), but also for a contractual penalty—often calculated as a percentage of the overdue amount per day or month. Dutch courts have the authority to reduce excessive penalties if they are deemed disproportionate.
Insolvency proceedings: Where rent arrears are undisputed, the landlord can send a formal notice of default (ingebrekestelling). If the tenant fails to pay, the landlord may file for the tenant’s bankruptcy (faillissementsaanvraag) in case of commercial tenants or request debt restructuring for individuals (schuldsanering) in case the tenant is a natural person. Filing for bankruptcy can be an effective pressure tool, but it should be used carefully and not as a means of coercion.
Under Dutch law, to succeed in a bankruptcy petition, the landlord must demonstrate that the tenant has at least two creditors with unpaid debts—one of which is the landlord—showing that the tenant has ceased to pay its debts as they fall due.
Use of a bank guarantee or rent deposit: If the lease includes a bank guarantee or rent deposit, the landlord may draw from it to recover arrears. The terms of the guarantee or deposit should be reviewed to ensure compliance with any notice or procedural requirements.
Pursuing a guarantor or former tenant: If a guarantor or former tenant is liable under a guarantee or other contractual arrangement, the landlord may pursue them for the arrears, subject to any statutory limitations and contractual terms.
Seizure of tenant’s assets: The landlord can apply for a prejudgment attachment (conservatoir beslag) on the tenant’s assets, bank accounts, or receivables to secure payment. This measure is frequently used before or during court proceedings to improve recovery prospects. Court approval is required, and the landlord must demonstrate a legitimate interest in securing the claim.
There are several options available to the landlord depending on the specific circumstances and what the landlord wants to achieve.
In cases where the rent arrears are significant or unpaid over a long period of time, there are more severe remedies available to the landlord, like most jurisdictions. These are mentioned below.
There are several options available to the landlord depending upon the specific circumstances and what the landlord wants to achieve.
Forfeiture: Forfeiture, otherwise known as the right of re-entry onto property by a Lessor involves some form of premature determination of the lease interests of a Lessee or tenant without any form of recompense usually arising from a breach by the lessee of a term of the lease such as breach of rental payment obligation. For a lessor to be able to exercise this right, it must be expressly stated in the lease agreement and it cannot be implied.
In Nigeria, forfeiture is subject to some statutory and common law limitations. The reserved rent must be certain or ascertainable. If the rent is not ascertainable the landlord cannot exercise the option to forfeit and re-enter the property and a formal demand for the payment of the rent at the time it becomes due must be made except where the requirement for formal demand is dispensed with by the parties agreement or by statute. The exercise of this right is not automatic, the Lessor or Landlord must obtain a Court order before it can legally re-take possession and forfeit the Lessee’s lease of the specific property. A claim for arrears of rent can also be made in addition to the relief for forfeiture.
Relief against forfeiture is available to a Lessee or tenant where it has paid all the rent arrears and other ancillary costs incurred by the landlord. The right to relief against forfeiture is not absolute; being an equitable relief, the court has discretion to refuse the tenant’s application in exceptional circumstances, e.g. the tenant’s conduct, the financial status of the tenant etc.
Court proceedings to recover arrears of rent: A claim can be filed in Court by a Landlord to recover outstanding rent or other sums due to the Landlord from the Lessee or Tenant. The Landlord has the option of claiming solely for arrears of rental or in addition to such claim, also claim for possession of the property on the ground of non-payment of rent by the Lessee or Tenant. Where the Landlord only seeks to recover the rental arrears, a formal demand must be issued on the Tenant. If a claim for recovery of possession is to be made in addition to the claim for rental arrears, it is mandatory that the relevant statutory notices are issued and served on the tenant or Lessee before an action can be commenced in Court.
We note that litigation proceedings may sometimes be prolonged depending on the defences put forward by Tenants. The notice periods for recovery of premises is longer depending on the nature of the Lease or tenancy while a claim for arrears of rent will usually require a notice of about 21 or 30 days depending on the parties agreement. if the Lessor’s purpose is strictly to recover the outstanding rental without more, issuing a 21 days demand notice is better to avoid delays.
Statutory demand and winding up proceedings: If the tenant has failed to pay rent or other sums due under the lease, winding up proceedings may be commenced against the tenant where it is a corporate entity on the basis that it is unable to pay its debt. Where the amount of the outstanding rental is not in dispute, the Landlord can serve a statutory demand on the Tenant to settle the outstanding within 21 days and if this is not paid within the 21 days, a winding up petition can be filed at the Federal High Court against the Tenant to recover the outstanding rental.
Drawdown on rent deposit: Where the Lease Agreement contains provisions for a security deposit/rent deposit, the landlord may be able to draw down from such a deposit if the conditions agreed by the parties are met for such draw down. Usually, the standard agreements will require the tenant to ensure that the amount of the deposit is restored after any deduction is made by the Landlord. The Landlord is to ensure that the rental arrears is not allowed to exceed the amount of the security/rent deposit before taking action to drawdown on the deposit.
Pursue Guarantor or former tenant: Commercial lease arrangements usually require that Lessees or Tenants must provide a guarantee in addition to the security/rent deposit or in lieu of same. Such guarantees are either from the lessee or Tenant’s Bank, affiliates or parent company as applicable or personal guarantees of the Directors of the Lessee or Tenant. Where there is a default on the part of the Tenant, the Landlord would have recourse to pursue the relevant guarantor under the guarantee. Where, by the provisions of a sublease, a previous Tenant agrees to be bound to pay any arrears of rental owed by the current Sublessee, the Landlord can claim against such previous Tenant under the parties’ contract if the Sublessee is in default.
There are several options available to the landlord depending on the specific circumstances and what the landlord is trying to accomplish.
Such a call should be addressed to the tenant immediately after it becomes clear that attempts at a fully amicable settlements have failed. The demand for payment should include the exact details of the landlord and tenant, a precise statement of the amount of rent and other charges due, a detailed calculation of the arrears, a deadline for payment, information on the consequences of further non-payment (result in the matter being taken to court), the bank account number for payment, the legal basis for the claim.
If the tenant, after receiving a call for payment of rent arrears, does not pay the obligation within the prescribed period, the landlord can take the matter to the court. The court decision, together with an enforcement clause, constitutes an enforceable title that allows enforcement of outstanding debts to begin.
If the tenant of the premises is in arrears in the payment of rent for at least two full payment periods and the landlord intends to terminate the lease without notice, the landlord should give the tenant written notice giving the tenant an additional period of one month to pay the outstanding rent.
The landlord may have a right to draw down from a cash deposit, if available, to recover the rent arrears or other amounts due under the lease. Additionally, if the tenant has provided a bank guarantee to ensure the fulfillment of all obligations arising from the lease agreement during the lease term, the landlord is entitled to draw on such a bank guarantee.
If the tenant fails to perform or improperly performs any of its obligations under the lease and has provided the landlord with a parent company guarantee, the guarantor shall fulfil these obligations in favour of the landlord and pay any rent arrears and other sums due in place of the tenant.
There are several options available to the landlord depending upon the specific circumstances and what the landlord wants to achieve.
Termination: The landlords have a right to terminate the lease agreement if the tenant fails to pay the rent on time on four different months in the space of twelve months or if the tenant fails to pay one rent for three months. In the first scenario, the landlord must notify the tenant, after the third missed/ delayed payment, that if the tenant fails to pay rent, on time, again, the former will terminate the lease. After receiving a termination notice, the tenant may pay the due amounts in the space of one month and therefore avoid termination of the lease agreement.
Court Proceedings for eviction: If after the termination of the lease agreement, on the grounds of the rent arrears, the tenant has not left the premises, the landlord can start court proceedings against the tenant through a special eviction procedure which is faster than a standard procedure and if the tenant wishes the oppose the proceedings he must pay a deposit to the Court on the amount of due rents, to a maximum of six months of rent.
Recovery of Owed Amounts: The landlord can demand the tenant to pay the owed amounts, who will have to pay them with an added 20% on the amounts owed. If the tenant doesn’t pay, the landlord can request the guarantor to pay, if there is one, or the landlord can withhold the deposit.
Court Proceedings for Owed Amounts: If the landlord is still due to receive the rents, he can start court proceedings against the tenant and/ or against the guarantor. Subject to statutory limitations the Landlord may be able to use a special court procedure for the fulfilment of contractual obligations (AECOP), however the amount owed must be under fifteen thousand euros.
Insolvency of the Tenant: Insolvency of the tenant does not automatically suspend or terminate the lease agreement; however the designated insolvency administrator may choose to do so. Credits resulting from a lease agreement do not have primacy over other credits, therefore owed rent amounts may be one of the last credits to be paid. Plus, the landlord cannot make his own any of the equipment in the premises to pay out the amounts owed.
There are several options available to the landlord depending upon the specific circumstances and what the landlord wants to achieve.
The tenant is obliged to pay the agreed rent duly and on time.
Under the Act on Leasing and Subleasing Commercial Premises, the landlord of non-residential premises can terminate the contract in writing prior to the expiration of the definite period if the tenant has not paid rent for more than one month or owes fees for services related to the lease.
Alternatively, the landlord can issue court proceedings against the tenant to recover rent or other sums due under the lease, eg by submitting a motion for payment order.
Out-of-court claim for unpaid rent. A landlord may try to recover the outstanding rent or any other amounts due under the lease agreement by means of an extrajudicial claim before resorting to legal proceedings. This is usually done by sending a burofax (a postal service in Spain that is used to send and receive important documents securely) to the tenant, formally demanding payment of the overdue amounts. Sending this communication serves as an official request for payment and has a relevant impact in case the landlord subsequently wishes to initiate legal proceedings to recover the rents still unpaid. Particularly, if the tenant does not respond to the burofax, forcing the landlord to go to court to claim the outstanding amounts, the tenant would not have the opportunity to pay the outstanding amount as a way of avoiding the judicial proceedings.
Court proceedings to recover the unpaid rent. The landlord can take legal action to recover the unpaid rent by means of a judicial claim for the amount owed. This procedure is channelled through the so-called verbal trial (juicio verbal) which, within the two main types of procedure existing in the Spanish legal system, is the most expeditious.
Court proceedings for eviction. The landlord may also request the eviction of the debtor tenant. In this case, before filing the claim, the landlord must have formally requested payment from the tenant through an extrajudicial communication. Like the previous option, this action is carried out by means of the verbal trial after the filing of a claim which, in this case, for the repossession of the property.
Please note that it is possible to cumulate both actions of judicial claim for unpaid rent (2) and eviction (3) in the same procedure.
Draw on rent deposit. Alternatively, the landlord may be able to deduct the amount owed from the rent deposit, if any, in order to recover overdue rent or other amounts owed under the lease.
There are several options available to the landlord depending upon the specific circumstances and what the landlord wants to achieve.
Forfeiture: Forfeiture is the landlord's right to determine the lease where the tenant is in breach of any of its obligations under the lease, or on the occurrence of certain events specified in the lease, such as non-payment of rent. However, the tenant can rectify rent arrears by paying the landlord within a certain period of time of receiving notice thereof; two weeks for commercial leases.
Court proceedings to recover debt: To recover rent or other sums due under the lease, the landlord will have to seek an eviction order, either in court or through the Enforcement Authority. According to statue, the debt must be recovered within two years of the tenant leaving the premises, otherwise, the debt is time-barred.
Drawdown on rent deposit: The landlord may be able to drawdown from a rent deposit if one exists to recover the rent arrears or other sums due under the lease. A drawdown on the rent deposit may waive the right to forfeit so this will need to be taken into consideration.
Pursue guarantor or former tenant: The landlord may be able to recover rent arrears and other sums due under the lease from any guarantors or former tenants under the lease either by way of a contractual guarantee or under the privity of contract rules, subject to certain limitations.
Article 25 (1) of Law No. 26 of 2007, as amended by Law No. 33 of 2008, regulating the relationship between landlord and tenants in the Emirate of Dubai provides that landlords may demand eviction of tenant prior to the expiry of a tenancy contract if the tenant fails to pay rent, or part of the rent due within thirty (30) days of the landlord’s notice for payment; unless parties agreed otherwise.
The landlord can submit an eviction application at the Rental Disputes Settlement Center. A fee of 1% of the annual lease amount (AED5000 maximum) is payable in cases of eviction.
There are several options available to the landlord depending upon the specific circumstances and what the landlord wants to achieve.
Forfeiture: Also known as re-entry, forfeiture is the landlord's right to determine the lease where the tenant is in breach of any of its obligations under the lease, or on the occurrence of certain events specified in the lease, such as non-payment of rent – it is subject to various statutory and common law limitations. The tenant may obtain relief from forfeiture if it pays all arrears, interest and costs. If the landlord forfeits, it should also have a plan to recover the debt if the tenant does not apply for relief from forfeiture. Some methods of recovery may not be available once the lease has come to an end.
Court proceedings to recover debt: A landlord can issue court proceedings against the tenant to recover rent or other sums due under the lease. The process can be expensive and protracted. A court hearing may not be set for several months and the tenant may not feel any impetus to pay the arrears in this period. Serving a statutory demand, which requires payment within 21 days, may be more appropriate.
Statutory demand and insolvency proceedings: If the tenant has failed to pay rent or other sums due under the lease, the landlord may commence insolvency proceedings. Where the amount of debt is not in dispute, the landlord can serve a statutory demand on the tenant. If this is not paid within 21 days, and the amount is more than £750 for commercial tenants (or £5,000 or more for an individual tenant), then this may give grounds to present a bankruptcy or winding up petition.
Draw down on rent deposit: The landlord may be able to draw down from a rent deposit if one exists to recover the rent arrears or other sums due under the lease. A draw down on the rent deposit may waive the right to forfeit so this will need to be taken into consideration.
Pursue guarantor or former tenant: The landlord may be able to recover rent arrears and other sums due under the lease from any guarantors or former tenants under the lease either by way of a contractual guarantee or under the privity of contract rules, subject to certain limitations.
Commercial Rent Arrears Recovery (CRAR): CRAR allows a landlord to instruct an enforcement agent to take control of a tenant's goods and sell them to recover an equivalent value to the rent arrears. Where CRAR may be used against a tenant, it can also be used against an undertenant, which is useful if the undertenant is in a better financial position than the head tenant. CRAR is only exercisable against arrears of principal rent. If any of the arrears relate to service charges, insurance rent, or other sums due under the lease (even if those sums are reserved as rent), CRAR cannot be used to recover them.
The landlord in a ‘private residential tenancy’ (the default type of tenancy in the private sector) would need to serve 28 days' notice to leave on the tenant, specifying (as the eviction ground) that the tenant has been in rent arrears for three or more consecutive months.
If the tenant refuses to leave, the landlord can apply to a body called the First-Tier Tribunal for Scotland (Housing and Property Chamber) (FTT) for an eviction order. Assuming the FTT decides to exercise its discretion to issue the order, it is likely to take at least eight weeks to be issued. Before making the application to the FTT, the landlord has to give notice of their intention to do so to the local authority in whose area the let property is situated.
The Private Housing (Tenancies) (Scotland) Act 2016 makes provision for a pre-action protocol which landlords can elect to follow before starting eviction proceedings for arrears of rent. Elements of the protocol include providing the tenant with clear information on how to access advice on their rent arrears, and making reasonable efforts to agree a reasonable payment plan with the tenant. Whether landlords have followed the protocol is considered by the FTT in deciding whether to grant an eviction order.
Once an eviction order is issued by the FTT the landlord can serve the tenant with an official letter giving 14 days to vacate, following which officers of the court (known as sheriff officers) would need to be appointed to remove the tenant.
The Rent Regulations Act (Statutory Instrument 32 of 2007), enacted under the Housing and Building Act [Chapter 22:07], governs the operations of the Rent Board in Zimbabwe. The Rent Board is a statutory body established to resolve disputes between landlords and tenants, including matters related to rent arrears. Landlords can approach the Rent Board to recover unpaid rent or request eviction orders in cases where tenants fail to meet their rental obligations. The Rent Board has the authority to:
Security deposits may be used to cover unpaid rent, as permitted in the lease agreement. Any deductions must be transparently documented.
Landlords may recover rental arrears and other amounts due under the lease from guarantors. If a guarantor has signed a contractual agreement to cover the tenant's obligations, the landlord can enforce this guarantee to recover unpaid rent.
Landlords in Zimbabwe can use court proceedings to recover rental arrears. If the court rules in favour of the landlord, it will issue a judgment ordering the tenant to pay the arrears. In cases where the tenant does not contest the claim, the court may issue a default judgment. Once a judgment is obtained, the landlord can enforce it through measures such as garnishing wages, attaching assets, or auctioning property to recover the debt.
