Some landlords may allow their tenants to stay in their facilities without paying rent for some predefined period of time. Ultimately, these arrears will have to be settled at some point in time. A letter to that effect definitely has to be drafted by a landlord and directed to the tenant. The ‘Rent Balance Letter (Demand for Rent)’ it is. This letter basically informs a tenant of any outstanding dues that have yet to be remitted to the landlord. It carries a thinly-veiled threat of expulsion from the said premises if the stated deadline does not have been met.
Further to these, the letter also indicates the outstanding balances and the corresponding periods wherein such amounts were not remoted as necessary. If a penalty comes along with none-payment, the letter should yet again state the same. Preferably this letter has to be sent out via a certified mail to enable the landlord to know that it was indeed received by the tenant.
When and why the rent balance letter is used
This letter is used under the following circumstances and for the following main reasons:
It is chiefly used when there is a prolonged default by the tenant. Inasmuch as the landlord may allow the tenant to stay in his premises without paying rent for some time, prolonged default is definitely detrimental to him. The letter hence serves as a ‘wake up’ call.
Demand Outstanding Rental Dues and Penalties (if applicable)
At its core, this letter demands outstanding rental dues from the tenant. As explained above, it shows the periods of time when the rental dues were not paid, the amounts applicable at each time, and the sum total. If some penalties accrue as a result of non-payment, the letter displays these as well.
Warn of an Impending Eviction
Lastly, it also warns of an impending eviction of the tenant from the facility if the stated deadline will not be met. This has to be conveyed in a language that is thin in order not to be misconstrued as threatening or damning.
What to include in this letter?
Typically, this letter contains the following provisions:
The periods when the tenant defaulted – These are the exact calendar months, weeks, years, or days when the tenant defaulted on the payment.
Date of the letter – It refers to when exactly the landlord drafts the letter.
Addresses of the landlord and tenant – Before signing a lease agreement, both the tenant and the landlord have to produce their addresses. You will find these at the top left of the letter.
The physical address of the property – This is where exactly the said piece of property is located (state, zip, city, and street).
Corresponding rental amounts – The specific amounts of money that the tenant ought to have remitted. These amounts have to be placed against the periods when there were defaults.
Outstanding balance – It is the sum total amount of money that has to be settled by the tenant.
Penalties accrued in the entire period – This provision applies when the tenant has to pay some penalties for defaulting on payments. Yet again, you have to display when exactly the defaults arose, their values, and the sum total.
A notice of an impending eviction – In case the tenant does not clear the dues before time, he will have to be evicted from the premise. The letter furnishes this threat though in a kind manner.
Signature of the landlord – It closes with the landlord’s signature as proof of authority and sanctions.
Sample Rent Balance (Demand for Rent) Letter
Your City, State Zip Code
Your Phone Number
City, State Zip Code
Dear Mr. /Ms. Last Name:
I hereby draft this letter to draw to your attention the fact you have some outstanding rental dues as of the date of my writing. I hence demand $XXXX for the periods stretching from mm/dd/yyyy to mm/dd/yyyy with immediate effect.
Kindly note that this is a serious issue that demands your prompt attention. In the unlikely event that you do not hit the stated deadline, I shall be left with no option but to invoke my legal right to seek your eviction.
This may be followed by legal proceedings to recover the outstanding amounts. In case of any issues, reach me via XXX-XXX-XXXXX.
Your Signature (hard copy letter)
Remaining Rent Balance Reminder (Email Example)
Subject: Rent Balance Letter Template (Demand for Rent – Your Name
Dear Mr. /Ms. Last Name:
As per my records, you have stayed at my premises while not remitting the rental dues for well over X months now. This has accrued to $XXX and the corresponding penalties of $XXX. These defaults cover the period from mm/dd/yyyy to mm/dd/yyyy.
I hereby provide you a two-week ultimatum to clear the two outstanding dues. The failure to do so will mean taking the appropriate legal roadmap, which includes evictions.
Do you have any issues you may want me to clarify? Get to me via my cellphone XXX-XXX-XXXX. I am always on standby to receive any inquiries and respond to them within the shortest realistic time possible.