Dealing with a tenant who has fallen into rent arrears can be distressing. To help ensure the situation is resolved smoothly, here are some important steps to follow.

Communicate with your tenant

1. Initial contact: if you notice the rent hasn’t been paid, first get in touch with your tenant. A phone call or text reminder followed by a letter or email is usually effective. Remember to be polite and courteous, as issues like this can be sensitive. Retain a record of all written correspondence in case the situation escalates.
2. Discuss financial troubles: if the tenant is experiencing money troubles, consider arranging a payment plan to help them pay back what they can afford in the short term. Long-term, guide them towards applying for the housing element of Universal Credit to cover the rent shortfall.

Involve the Guarantor

If the tenant has a guarantor listed on the tenancy agreement or a Deed of Guarantee, request that they pay the rent arrears. If the
rent remains unpaid after 14 days, contact the tenant and guarantor again, requesting payment via letter or email for record-keeping purposes.

Utilise your insurance and deposit scheme

1. Insurance claims: Most landlord insurance policies cover unpaid rent, ensuring your income is protected. Contact your insurance provider to learn how to claim the money you’re owed.
2. Tenancy deposit: If the tenancy ends with outstanding rent payments, you can request to deduct unpaid rent from the tenant’s deposit. Contact your tenancy deposit scheme for more details.

Begin eviction proceedings

1. Serve a Section 8 Notice: If the tenant falls into two months of rent arrears and has made no effort to communicate or remedy the situation, you can begin the eviction process by serving a Section 8 Notice on the ground of rent arrears. If the tenant pays back their arrears, this would invalidate the Section 8 Notice if it went to court.
2. Prepare for Court: If the tenant challenges the eviction and the case goes to court, you’ll need to provide evidence of your correspondence with the tenant. Show that you made every effort to inform them of their arrears and gave them the opportunity to pay. Keeping all correspondence is vital to support your case.
3. Consider voluntary surrender: To avoid court, consider asking if the tenant will willingly surrender the tenancy. This approach can help you cut your losses and prevent further court costs.