Effective Solutions for Landlords & Property Managers

Specialized real estate debt collection in Mombasa is essential for landlords, property managers, and developers facing the challenge of unpaid rent and service charge arrears. In a vibrant property market like Mombasa's, non-paying tenants can cripple the profitability of a real estate investment. At Swipe Recoveries Experts Ltd, we are not just general debt collectors; we are specialists in real estate recovery, primarily utilizing the powerful legal tool of Distress for Rent. Our approach is swift, professional, and strictly compliant with Kenyan law, providing a legal and effective way to recover your dues without resorting to lengthy and expensive court battles.

Key Legal Tool: The Distress for Rent Act (Cap 293)

The cornerstone of real estate debt recovery for landlords in Kenya is the Distress for Rent Act (Cap 293). This powerful piece of legislation gives landlords a legal remedy to recover rent arrears without needing an initial court order. It allows a landlord, through a licensed auctioneer, to enter a tenant's premises and seize their movable goods (a process called 'attachment') as security for the unpaid rent.

This process is known as 'levying distress.' It's crucial to understand that distress is a tool for recovering rent arrears, not for eviction. The primary goal is to compel payment by holding the tenant's goods. If the tenant pays the arrears and the associated auctioneer's costs, their goods are returned. If they fail to pay within the stipulated time after seizure, the goods can be sold at a public auction to cover the debt. It's a highly effective but legally sensitive process. Any misstep, such as using an unlicensed auctioneer or seizing protected goods, can result in a lawsuit against the landlord for illegal distress. This is why working with a professional firm like Swipe Recoveries is paramount.

real estate debt collection Mombasa
Swipe Recoveries Experts Ltd

Our Process for Recovering Real Estate Debt in Mombasa

Our process for real estate debt collection in Mombasa is methodical and designed for maximum legal compliance and effectiveness.

1. Instruction & Documentation Review: The landlord or property agent provides us with a formal instruction letter, a copy of the lease/tenancy agreement, and a detailed statement of the rent arrears. Our team reviews these documents to confirm the legality of the claim.

2. Issuing the Proclamation Notice: A licensed auctioneer from our team visits the tenant's premises in Mombasa (be it an apartment in Tudor, a shop in the CBD, or a house in Kizingo) and serves them with a Proclamation Notice. This notice lists the movable items that are being 'proclaimed' and gives the tenant a set period (typically 7-14 days) to clear the arrears and costs. The goods are not removed at this stage.

3. Attachment of Goods: If the tenant fails to pay within the proclamation period, the auctioneer returns to the premises to 'attach' (seize) the proclaimed goods. The goods are then removed and stored in a secure warehouse. A police presence is often requested to ensure the process is peaceful.

4. Sale by Public Auction: After attachment, a statutory notice period is given before the goods can be sold. If the debt remains unpaid, the goods are advertised for sale and sold via public auction. The proceeds are used to settle the rent arrears, auctioneer's fees, and associated costs like transport and storage. Any surplus is returned to the tenant.

Debt Recovery & Auctioneering Coverage in Mombasa, Kenya

Swipe Recoveries Experts Ltd provides commercial recovery, skip tracing, and auctioneering services across Mombasa, Kenya and all 47 counties in Kenya.

Auctioneer Fees for Distress for Rent in Mombasa (KES)

A formal proclamation notice for real estate debt collection in Mombasa.

The costs for levying distress are regulated by the Auctioneers Rules, ensuring fairness and transparency for both the landlord and the tenant. The tenant is ultimately responsible for these costs if the distress is lawful. At Swipe Recoveries, we provide a clear schedule of fees upfront.

Key fees include:

Proclamation Fee: A fixed fee for serving the initial notice, typically ranging from KES 3,000 to KES 7,500.
Attachment Fee: A fee for the physical seizure of goods.
Commission: The auctioneer's main fee is a commission on the value of the goods sold or the amount of rent recovered. This is on a sliding scale, for example, 10% on the first KES 100,000 and 5% on the rest.
Other Costs: You should also budget for 'disbursements' such as transport for carrying the goods, security/guards for the attachment process, and warehouse storage fees. For a typical residential rent recovery of KES 150,000, the total recoverable costs and fees could be in the range of KES 20,000 to KES 40,000.

Frequently Asked Questions

Can a landlord seize my property for unpaid rent in Mombasa without a court order?
Yes. Under the Distress for Rent Act, a landlord can hire a licensed auctioneer to proclaim and seize your movable goods to recover rent arrears without first going to court. However, this only applies to rent arrears. The landlord cannot use this process to evict you or to seize 'protected goods' like bedding, clothing, and tools of trade.
What is the difference between eviction and distress for rent?
Distress for rent is a process to recover money owed by seizing a tenant's goods. The goal is payment. Eviction is the legal process of removing a tenant from the property, which requires a separate court order for vacant possession. While a non-paying tenant may eventually be evicted, distress for rent is a specific and faster remedy for collecting the outstanding debt.
How much does it cost to hire an auctioneer from Swipe Recoveries for rent arrears collection?
The cost is determined by the Auctioneers Rules and is payable by the tenant if the distress is successful. The landlord typically provides an initial deposit or 'float' to cover the auctioneer's initial costs like transport and fees. If the recovery is successful, the landlord is reimbursed from the proceeds, making the net cost to the landlord minimal. Swipe Recoveries Experts Ltd provides a detailed quote before starting any assignment.