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How to recover debts or rental from a customer or tenant?


Tips for effective way of recovering your debts/outstanding money due and owing to you:-

1.  Proper documentation

Please ensure that any business dealing or arrangement with your customers or tenants, it is prudent to have a proper agreement or contract in writing.  For the case between a landlord and tenant, a proper documentation to be signed is a tenancy agreement. 

In order to prove for any business deals and/or transactions, for any form of services rendered and goods sold and delivered, the documentation to be prepared are: 

a. Quotation; 

b. confirmation of the quotation and terms and conditions for the manner of payment, mode of services to be rendered and/or goods to be delivered agreed and signed by both parties;  

c.  Sales Order or invoice;

d. proof of payment of deposit by issuing an official receipt;  

e.  statement of account duly signed and accepted by the customers with their company's seal or stamp, company's details, registration number, address, name and IC of the authorised personnel; or if it is an enterprise (trading enterprise), 1.  trading license, IC of the business owner and address; and

f.  all correspondences including emails, messages and other supporting documents.

For recovery of arrears of rent

a. tenancy agreement; if there is no tenancy agreement, the proof of payment of monthly rental;

b. receipts of the monthly rental by the Landlord;

c.  bank statements showing receipt of the rental ;

d.  bank in slip from the tenant;

e. payment vouchers issued by the tenant (if any);

f. proof of payment of utility bills by the tenant;

g. any other form of correspondences such as emails, messages and etc.

2. Talk to your auditor/accountant

Get some advise from your auditor or accountant whether your book keeping or data or transaction or billing system kept in your server or office are in order.

3.  Talk to your legal advisor

If you are facing any issues on collecting your charges or money, get a proper legal advice from your company's legal advisor on the possible legal proceedings in recovering the debts or outstanding amount due and owing by the debtors.


Disclaimer:  The above is only a general guidelines on what should be ready before you seek for  professional advice before making any legal proceedings for recovery of debts.  This does not form any part of the legal advice as every scenario is unique and different.  A proper legal consultation is required should you consider it is fit and proper to do so.

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