As a landlord, dealing with rent arrears is a stressful situation, and it is understandable that many landlords want to deal with it quickly and decisively. However, there is the possibility that a landlord could end up making the situation worse than it already is if they handle arrears the wrong way. That is why it is important to understand the correct way to deal with the issue from the beginning.
Do not act aggressively, but do act quickly
When rent is late, a friendly and soft approach is often many times more effective than a formal approach. In most cases, tenants that are having real issues will respond positively to someone asking them if that is the case. A short discussion can make all the difference and prevent a small problem from developing into a serious issue.
Document Everything
From the first missed payment, be sure to start keeping records that are time stamped that show every effort made to contact the tenant, all payments received, and all agreements reached regarding payment plans. This documentation will become crucial evidence if the situation escalates to the point where you are forced to issue a formal notice or pursue court action.
Know the legal constraints
Illegal evictions are a big issue. No matter how frustrating the situation becomes, it is illegal to change locks, remove the tenant’s stuff, or turn off utilities to simply pressure them into paying rent. Eviction processes like these carry a lot of legal and financial consequences that are worse than the original rent arrears issue.
Before issuing a formal notice, consider a repayment agreement
When a tenant is willing to talk and has a reasonable expectation of being able to pay the overdue rent, a formal repayment agreement can help avoid the time, cost, and stress of formal notices and court actions.
All agreements should be put in writing, and it’s important to establish a timeline so that both parties understand what is expected of them.
Understand Your Notice Options
When an arrears situation continues and a repayment plan is not working, landlords usually have two types of notices based on their situation and the amount due. Getting the correct notice type and serving it appropriately is very important; mistakes can invalidate the notice and delay the entire process by weeks or even months.
Support Services Are Available
Most tenants in arrears are in a genuine, temporary financial crisis, not just refusing to pay. Referrals to tenants for local welfare assistance, benefits advice and/or a rent deposit scheme can sometimes resolve arrears more quickly than formal action, and it helps to create a positive relationship that is mutually beneficial if the tenancy continues.
When to Seek Professional Assistance
Chronic arrears, an obstinate tenant, or a situation that has already gone formal notice are all legitimate reasons to seek professional help through letting agents, solicitors, or specialized landlord services. Correctly implementing the procedure the first time saves time and expenses in the future.
Our team is available to landlords dealing with rent arrears to provide guidance on how to manage it best. We provide practical, confidential advice.
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