Property Owner in Czechia? These Are Your Options If the Tenant Fails to Pay Rent

Let’s start with the good news. You can take some comfort in knowing this is a very common issue. At any given time, about 20% of landlords deal with tenants who fail to pay rent. However, evicting non-paying tenants or suing for damages can be extremely challenging – often requiring months of legal proceedings and significant financial investment to resolve.

If you already have problematic tenants, you’re among the unlucky 20%. But if not – you’ll be glad to know there are ways to reduce the risk of encountering such issues in the future. For now, however, the issue must be addressed.

There’s no magic solution to difficult tenants, as each case is unique. That said, it’s important to understand that threatening eviction or acting aggressively isn’t always the right move – sometimes the situation can be resolved with more flexibility and empathy. Still, you must be prepared to use your strongest legal tools – you might need them.

Late Payment of Rent and Other Charges

Your tenant might have various reasons for paying late. They may be living on a tight budget, waiting for their paycheck, or simply disorganized and forgot.

Whatever the reason, it’s wise to send a written reminder that clearly outlines two things: their legal obligation to pay, and the financial penalties they may face if they don’t.

Regularly checking payments and sending reminders can resolve the issue – just keep in mind that if you forget to follow up, your tenants will likely forget too.

So What Should You Do?

If payment isn’t received on time, send an email reminder to the tenant that includes both of the following:

• On one hand, a demand to settle the payment within three business days, along with a warning about consequences for non-payment (termination, eviction, penalty fees, and additional costs).
• On the other hand, a show of understanding that the delay may have been unintentional – and that timely payment will avoid negative consequences.

About 95% of late-paying tenants will not only pay after receiving a warning – they’ll also avoid repeating the issue.

Chronic Late Payments

The situation is very different if a tenant avoids paying rent for several consecutive months. They may have lost their job – or they might be “professional non-payers” who moved in without any intention of paying rent.

A general rule: if a tenant has failed to pay rent for three consecutive months, they’re in breach of contract and no longer entitled to a standard three-month notice period.

This means you can issue an immediate eviction notice – but you will lose out on those three months of rent, which you can only recover through court proceedings.

How to Spot Chronic Non-Payers?

Chronic non-payers often have multiple debts and liens, which can be checked through public records. It’s also wise to ask prospective tenants how they plan to pay their rent.

Collecting Overdue Rent

One or two months of unpaid rent is usually covered by the security deposit. You are required to notify the tenant and inform them of potential legal action. However, these processes are handled by your legal counsel and can take several months to a year.

How to Prevent the Problem? A Solid Lease

If your lease isn’t properly drafted, you could find yourself with no enforceable legal remedy. That’s why you should always have a lease prepared by a qualified attorney. Never rely on generic online lease templates.

Evicting the Tenant

Tenants are required to vacate the property once the three-month notice period ends. However, in reality, this often doesn’t happen – and you may be forced to initiate eviction proceedings.

You can call the police and confront the tenants, arguing that they no longer have a legal right to occupy the property. However, you cannot remove them by force – nor can the police without a court-issued eviction order.

That’s why it’s best to consult with an attorney before launching a lengthy legal battle. Still, you may want to try reaching an out-of-court agreement with the tenants first. If they refuse to communicate, you can try contacting their family or guarantors (if any).

Not all tenants fail to pay out of malice. You may be dealing with someone facing objective hardship – a single mother, an elderly person, or a parent who lost their job.

It’s natural to feel conflicted in these situations. You don’t want to make life harder for vulnerable people, but you also can’t afford to support them at your own expense.

The best approach in such cases is to help tenants behind the scenes – by connecting them with organizations that support people in their situation. After that, follow the standard procedures.

Prevention Is the Best Policy

The best way to avoid problems is to screen tenants during the application process and verify their income sources in advance. At Conbiz, with experience managing hundreds of properties in Prague and across Czechia, we require a security check from every tenant and verify that they have no debts or legal issues.

Contact us today to learn about our solutions for dealing with non-paying tenants – so you never have to face the problem alone.