When a tenant falls into rent arrears, it creates a stressful situation for everyone involved. A tenant suddenly being unable to pay their rent is usually brought on by something serious like losing their job or being unable to work. <\/p>\n\n\n\n
And for landlords, unpaid rent can disrupt cash flow needed for mortgage payments, insurance, and property maintenance. <\/p>\n\n\n\n
It\u2019s crucial to address rent arrears as soon as possible. The longer they accumulate, the harder it becomes for your tenant to repay the debt, and the more costly it is for you. <\/p>\n\n\n\n
By reaching out to your tenants as soon as you notice rent is unpaid, you can start to understand the extent of the problem and how you might be able to support them.<\/p>\n\n\n\n
For example, the tenant might explain that they\u2019ve changed banks so the money will be paid very soon. Alternatively, they might tell you that they\u2019ve lost their job and won\u2019t be able to pay their rent in full until they get a new one.<\/p>\n\n\n\n
If your tenant feels they can speak to you openly and honestly, it\u2019ll be easier to work together to resolve the problem.<\/p>\n\n\n\n
Although you may initially contact your tenant by phone or email, it may be more suitable to have a more in-depth conversation in person.<\/p>\n\n\n\n
Keep a record of all the conversations you\u2019ve had with your tenant about their rent arrears. This documentation is vital if the situation escalates.<\/strong><\/p>\n<\/div>\n\n\n\n If the arrears are significant, a formal repayment plan can help your tenant clear their debt in manageable instalments.<\/p>\n\n\n\n When creating a plan, consider:<\/p>\n\n\n\n For example if the tenant owes \u00a31,200, a repayment plan could look like this:<\/p>\n\n\n\n Your tenants may not be aware of the financial help available to them. Pointing them towards support can help them to get their finances back on track.<\/p>\n\n\n\n Some of the help that tenants in arrears could access includes:<\/p>\n\n\n\n As well as the support options above, tenants in arrears may also be able to get a grant (money they don\u2019t have to pay back) to clear their rent arrears.<\/p>\n\n\n\n These include:<\/p>\n\n\n\n For more information about how to apply for these grants, tenants should contact the following organisations:<\/p>\n\n\n\n Landlords should also be aware of The Debt Respite Scheme<\/a> (also known as breathing space), which can stop you from chasing or adding to debt such as rent arrears for a set period.<\/p>\n\n\n\n If your tenant has stopped responding to you, and they have a guarantor<\/a>, you can contact them. As they\u2019re legally liable for unpaid rent, the guarantor may be able to help resolve the arrears or encourage the tenant to communicate with you. <\/p>\n\n\n\n You should only take this step after several failed attempts to reach the tenant directly.<\/p>\n\n\n\n If your tenant is in arrears and you\u2019ve not heard from them or their guarantor after several attempts to contact them, you may need to start thinking about eviction.<\/p>\n\n\n\n Eviction should always be the final option. It can be a long, expensive, and stressful process for both landlords and tenants.<\/p>\n\n\n\n Due to the complexity of evictions, you should seek professional legal advice before starting the process.<\/p>\n\n\n\n If your tenant owes a minimum of eight weeks\u2019 rent, you can issue them with a Section 8 notice to start eviction proceedings.<\/p>\n\n\n\n Section 8 has a minimum notice period of two weeks and can only be used when a tenant is in serious arrears.<\/p>\n\n\n\n The eviction notice will ask the tenant to leave the property by a specific date. If they fail to do so, then the landlord will have to go through the courts to regain possession of their property.<\/p>\n\n\n\n Read our in-depth guide on Section 8 evictions<\/a> for more information.<\/p>\n\n\n\n In England and Wales, you can typically start the eviction process using a Section 8 notice if the tenant is at least two months behind on rent. However, the rules can be complex, so seeking legal advice is recommended.<\/p>\n\n\n\n You may be able to use the tenancy deposit to cover unpaid rent at the end of the tenancy, but this must be agreed with the tenant or approved by your tenancy deposit protection scheme. You can\u2019t use the deposit to cover rent during the tenancy itself.<\/p>\n\n\n\n A Section 8 notice is used when a tenant has breached their tenancy agreement, such as by having rent arrears. Section 21 evictions will be abolished from 1 May 2026, so a Section 8 notice will be your only means of eviction. <\/p>\n\n\n\n Rent guarantee insurance<\/a> (or tenant default cover) can provide landlords with financial protection if tenants fail to pay rent. Rent guarantee insurance policies usually cover up to \u00a3100,000 in unpaid rent and can give you peace of mind in a difficult situation. <\/p>\n\n\n\n Over 200,000 UK landlord policies, a 9\/10 customer rating and claims handled by an award-winning team. Looking to switch or start a new policy? Run a quick landlord insurance quote<\/a> today.<\/p>\n\n\n\n2. Create a realistic repayment plan<\/h3>\n\n\n\n
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3. Guide tenants towards financial support<\/h3>\n\n\n\n
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Are there grants to clear rent arrears?<\/strong><\/h2>\n\n\n\n
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Rent arrears \u2013 what if communication fails?<\/h2>\n\n\n\n
Contacting a guarantor<\/h3>\n\n\n\n
Evictions are a last resort<\/h3>\n\n\n\n
Issuing a Section 8 notice for rent arrears<\/h3>\n\n\n\n
Dealing with rent arrears \u2013 key takeaways <\/h2>\n\n\n\n
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Rent arrears FAQs<\/h2>\n\n\n\n
How many months of rent arrears before I can evict a tenant?<\/h3>\n\n\n\n
Can I use my tenant’s deposit to cover rent arrears?<\/h3>\n\n\n\n
What’s the difference between a Section 8 and Section 21 notice?<\/h3>\n\n\n\n
How can rent guarantee insurance help with rent arrears?<\/h3>\n\n\n\n
More guides for buy-to-let landlords<\/strong><\/h3>\n\n\n\n
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Get set with tailored landlord cover<\/h3>\n\n\n\n