H1 How to Deal with Tenant Rent Arrears   

Dealing with unpaid rent can be tricky for landlords. This guide breaks down what to do when tenants are behind on payments, step-by-step, including your first notice, finding fair solutions to manage late rent issues and legal proceedings.  

Here’s what to do if your tenant is in arrears: 

1. Contact your tenant  

After around seven days of non-payment, you should contact your tenant via email, telephone or text message.  

Don’t make assumptions about the situation and try to remain polite – there are many reasons why your tenant may not have paid their rent on time. It could be an honest mistake or due to illness, for example. In these cases, checking in with your tenant may be all that is needed to prompt the payment.  

If the tenant is deliberately withholding rent, for example, if they’re unhappy with the state of the property, this is your chance to start a conversation so that the problem can be resolved.  

2. Send a letter 

If you haven’t been able to quickly resolve the problem by phone or email, you should send a letter to the tenant directly to ask that outstanding rental arrears be paid in full as soon as possible.  

The letter should also explain that if rent is not paid or continues to be paid late, the tenant is at risk of eviction and you will contact the court to regain possession of the property if required. Avoid coming across as threatening – remain clear and factual. Your tenant has a right to explain themselves and work to resolve the situation. 

You should also direct your tenant to the local authority and other services that can provide advice and support during financial difficulties.  

3. Set up a repayment plan  

If your tenant is in financial difficulty, a repayment plan can allow them to spread out the outstanding rent into smaller, more manageable chunks over several months.  

It is up to you whether you offer a repayment plan. Learn as much as you can about the situation from your tenant so that you can make an informed decision.  

If you do agree on a plan with your tenant, confirm in writing the details that have been agreed.

4. Contact your rent guarantee insurance provider 

If you have landlord rental insurance, also known as rent guarantee insurance, you should contact your provider. Claiming against your insurance may keep you out of financial difficulties if you rely on your rental income.  

At Landlord & Tenant Protection, we have partnered with Alan Boswell and Willis IRM to provide a range of rent guarantee insurance options. 

5. Send a follow-up letter 

If your tenant still has not paid 14 days after rent was due, you should send a second letter stating that they are in arrears and risk legal action.  

You should also notify your tenant’s rent guarantor, if they have one. Refer to the guarantor agreement signed by you and the guarantor at the start of the tenancy for their agreed responsibilities regarding rent arrears.   

6. Send a final notice 

After 21 days of non-payment, you should send a third letter to your tenant. This letter will act as a final warning. You should again state that legal action will be taken to reclaim the property if the tenant does not pay what they owe. 

Send a copy of this letter to your tenant’s guarantor, if they have one.  

7. Start eviction proceedings 

If your tenant still has not paid rent after two months, you can start proceedings to regain possession of your property on the grounds that they have broken the terms of the tenancy agreement. 

Proceedings differ depending on where your property is in the UK: 

• In England, this is known as Section 8 and you must complete a Notice seeking possession of a property let on an assured tenancy 

• In Wales, this is known as Section 131 and you must complete a Notice of possession claim on the ground of serious rent arrears 

• In Northern Ireland, you must first serve a ‘Notice to quit’ providing the legal notice period. After this, you can submit an ‘Order for Delivery of Possession of Land’ 

• In Scotland, you must apply to the First-Tier Tribunal for Scotland (Housing and Property Chamber). However, you must first follow all pre-action protocols. 

You must provide evidence to support your eviction notice, such as any correspondence with your tenant and a record of all monies paid and unpaid.  

If your tenant pays back their rental arrears, you must let the court know as soon as possible so that proceedings can be halted. If you still wish to evict your tenant, you may need to make a new claim.   

Note that this article provides only an overview of the steps to take. You should thoroughly research eviction procedures and consult a solicitor before taking court action.  

8. The court determines the outcome of your case 

Hopefully, your tenant or their guarantor will pay the money they owe you and you can avoid court proceedings. If the case does reach the court, a judge or tribunal panel will decide whether your tenant must leave the property and what they need to pay you.  

The money the tenant owes you may include court fees or legal costs on top of rent arrears. If they paid a deposit, this may cover some of the money owed. You typically have up to six years to reclaim costs from your tenant. 

Providing financial protection for landlords  

At Landlord & Tenant Protection, we make lettings simple for landlords, letting agents and tenants.  Not only do we have a unique portal that allows you to manage your property and tenant details with ease, but we also work with trusted partners to offer financial protection if your rental income stops. Learn more about our Rent Guarantee Insurance.