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How landlords can handle rent arrears disputes effectively

For landlords, few things are more frustrating than tenants falling behind on rent payments.

While rent arrears disputes can be stressful, handling them effectively and legally will help protect your interests and maintain good tenant relationships where possible.

Here is a practical guide to managing these disputes in a professional and compliant manner.

Communicate with your tenant early

Open communication is key to resolving rent arrears disputes.

If a tenant misses a payment, reach out promptly.

A polite, professional email or letter can often be enough to encourage a tenant to explain their situation and propose a solution.

Avoid making assumptions – financial difficulties or unexpected circumstances may be at play.

Keep all communication in writing. This provides a clear record if legal action becomes necessary.

Offer a repayment plan

If your tenant is willing but unable to pay the full arrears immediately, consider offering a repayment plan.

This demonstrates goodwill and could help preserve the tenancy.

Clearly outline the repayment terms in writing, specifying dates and amounts, and have both parties sign the agreement.

Example: “The tenant agrees to pay an additional £200 per month, in addition to the regular rent, until the arrears of £1,000 are cleared in full.”

Check your legal obligations

Before taking further action, ensure you have complied with all legal requirements.

Have you protected the tenant’s deposit in a Government-approved scheme?
Have you issued accurate rent statements detailing arrears and payments?

Failure to comply with these requirements could weaken your position if the matter proceeds to court.

Serve notice if necessary

If informal efforts fail, you may need to serve an eviction notice. Under the current rules in England, you have two primary options:

Section 8 notice: Use this if the tenant is in rent arrears of two months or more. Specify the relevant grounds for possession under the Housing Act 1988 (usually Ground 8).
Section 21 notice: This provides a no-fault route to reclaim possession. Note that the Renters’ Reform Bill aims to abolish Section 21, so staying updated on legislation is crucial.

Apply for a possession order

If the tenant does not vacate after the notice period, you can apply to the court for a possession order.

In the case of significant rent arrears, you may also seek a money judgment to recover the unpaid rent.

Enforce the order if necessary

If the tenant still refuses to leave, you can escalate the matter by requesting a warrant for possession.

Bailiffs or High Court Enforcement Officers will then assist in regaining control of the property.

Take preventative measures

To reduce the risk of future rent arrears disputes, consider these strategies:

Conduct thorough tenant referencing to assess applicants’ financial reliability.
Include robust clauses in tenancy agreements outlining rent payment obligations and consequences of default.
Maintain regular communication with tenants to address issues early.

Rent arrears disputes can often be resolved without the need for legal action, but when escalation is necessary, landlords must act carefully and within the law.

By addressing the issue promptly, keeping communication professional, and knowing your legal options, you can minimise the disruption caused by unpaid rent.

If you are dealing with a difficult rent arrears situation and need expert legal advice, contact us today to discuss your options.