What should I do when my tenant does not pay rental?

What do you do when your tenant does not pay your rental? 

One of the common and effective way is to issue a writ of distress against your Tenant.

The aim is for the Court Bailiff to break the lock of the Premises and enter the premises legally.

It is not recommended for the Landlord to break the lock of the premises and enter the Premises themselves as the Tenant may come back later to sue to Landlord for missing items in the Premises, which will cause the Landlord unnecessary stress and expenses.

A Writ of Distress could be conducted by the Landlord’s lawyer.

The Landlord must firstly issue a Letter of Demand to the Tenant by hand or by AR Registered Post. Use the address provided in the Tenancy Agreement, namely addressed to the Premises and also to the Tenant’s residential address. Give a period of 7 days to comply with the demand, or follow the time period provided in the Tenancy Agreement to remedy the default.

After the Letter of Demand has been issued, the Landlord has to file an Originating Summons support by an Affidavit to request the Court to issue a Writ of Distress. The Affidavit in Support must contain the total rental owing by the Tenant and exhibiting the Letter of Demand and Tenancy Agreement and Police Report (if any). 

The prayers for the Writ of Distress would usually be: -

1.        Suatu writ distress dikeluarkan terhadap Defendan__________________ yang dinamakan di atas bagi menahan harta alih di premis, melainkan harta kepunyaan Plaintif, dan kompoun sewaan yang beralamat di _________________________ untuk mendapat segala sewaan yang tunggakan yang perlu dibayar yang berjumlah RM_______________ untuk ________________ bulan yang kena dibayar dari bulan ____________________________ pada kadar sewaan sebulan _______________________________ yang mana harus dibayar pada atau sebelum 1 haribulan setiap bulan”.

2.        Bahawa kuasa diberi kepada bailiff untuk memasuki premis dengan mengunakan apa-apa paksaan sebagaimana yang perlu untuk mendapatkan kemasukan ke dalam bangunan dan mengambil milikannya.

3.        Bahawa milikan kosong premis tersebut diberi kepada Plaintif

4.        Kos.

Once the cause papers are prepared and signed by the Landlord, proceed to file the papers in Court and wait for a Court date.

The Court will usually insist that the Court papers be delivered to the Tenant/Defendant. So, it is prudent to send the Court papers to the Tenant/Defendant by Hand or AR Registered Post and prepare and file an affidavit of service as proof of service.

The Court will ask whether the papers has been served to the Tenant/Defendant, duration of the Tenancy, Monthly Rental, how much is the total rental in default etc.

Once the Court grants order in terms of the Originating Summons, file the Order and also the Writ of Distress together.

This is part one of two. Next part would be the process for the Writ of Distress.