One of the most challenging situations a landlord can face is a tenant falling into rent arrears. Rental income is often relied upon to cover mortgage payments, insurance, maintenance costs and other financial commitments, so missed payments can quickly become a source of stress.
While it may be tempting to take immediate action, landlords should approach rent arrears carefully and follow the correct legal process. Acting too quickly or outside the law can make matters worse and may even expose the landlord to legal claims.
This article explains the steps landlords should take when a tenant stops paying rent and the options available under the law in England and Wales.
What Should You Do When Rent Is Missed?
The first step is to establish why the payment has not been made. In some cases, it may simply be an oversight, a banking issue or a temporary financial difficulty.
A polite phone call or email is often enough to resolve the situation. Maintaining open communication can help preserve a positive landlord and tenant relationship and may avoid the need for formal action.
If the tenant is experiencing genuine financial hardship, it may be appropriate to discuss a short-term payment arrangement. Any agreement should be confirmed in writing, setting out the amount to be paid, the payment dates and how the arrears will be cleared.
Landlords should also keep accurate records of:
- Rent due and payments received.
- All communication with the tenant.
- Copies of reminder letters or emails.
- Any agreed repayment plans.
These records can become important if formal legal action is later required.
What If the Tenant Continues Not to Pay?
If the arrears continue to increase despite reminders and attempts to reach an agreement, landlords should consider the legal options available.
The appropriate course of action will depend on the tenancy agreement, the amount of arrears and whether the landlord wishes to recover possession of the property.
In some circumstances, landlords may be able to seek possession of the property by relying on statutory grounds for rent arrears. However, the correct legal procedure must be followed, including serving the appropriate notice and complying with all relevant legal requirements.
Landlords should avoid taking matters into their own hands. Changing the locks, removing a tenant’s belongings or attempting to force the tenant to leave without following the legal process could amount to an unlawful eviction, which is a criminal offence.
Obtaining legal advice at an early stage can help landlords choose the most appropriate route and avoid costly mistakes.
If you’re unsure about your rights as a landlord, NakdLaw provides lawyer-informed answers to common landlord and tenant questions, with every response checked and moderated by practising lawyers.
How Can Landlords Reduce the Risk of Rent Arrears?
Although rent arrears cannot always be prevented, there are several practical steps landlords can take to reduce the likelihood of future problems.
Careful referencing before granting a tenancy remains one of the most effective ways to assess whether prospective tenants are likely to meet their financial obligations. Landlords should also ensure that a comprehensive written tenancy agreement is in place, clearly setting out rent payment dates, the consequences of late payment and the responsibilities of both parties.
Regular communication throughout the tenancy is equally important. Addressing missed payments promptly often prevents arrears from escalating into larger disputes.
Landlords should also carry out routine inspections, where permitted by the tenancy agreement, and maintain accurate records of all payments and correspondence. Good record-keeping can make the legal process much smoother should possession proceedings become necessary.
Finally, landlords should avoid delaying action. Allowing arrears to build over several months can make recovery more difficult and increase financial losses.
Conclusion
Rent arrears can be stressful for both landlords and tenants, but following the correct legal process is essential.
By communicating with tenants, keeping detailed records and seeking legal advice where appropriate, landlords can often resolve issues before they escalate. Where possession proceedings become necessary, ensuring the correct legal procedures are followed will help protect the landlord’s position and reduce the risk of unnecessary delays.
Every tenancy is different, and obtaining early legal advice can provide clarity on the most appropriate course of action.
Need Advice on Rent Arrears or Possession Proceedings?
Penerley’s experienced landlord and tenant solicitors advise landlords across England and Wales on rent arrears, possession claims and tenancy disputes. Whether you’re dealing with a missed payment or ongoing arrears, we can provide practical, commercially focused advice to help protect your investment. Contact Penerley today to discuss your matter with our specialist team.
