If you are a landlord and your tenant has fallen into arrears, you will want to recover the amount owed as soon as you can to cover your own expenses. We take a look at your options and how to handle the situation when a tenant fails to pay money owed under their lease.
What A Landlord Should Do When There Are Rent Arrears
You should not start legal proceedings straightaway, as there may be a quicker and easier way to resolve matters. The first step is to speak to your tenant and try to discuss why the arrears have arisen. If they are genuinely unable to pay the full amount, you can consider working out a schedule of payments so that the arrears can be collected over an agreed time period, but you are advised to take legal advice before doing this so that you avoid unknowingly waiving your rights.
You should make sure that you have an accurate record of all payments that are due and that have been made by the tenant. They should be provided with receipts for all money they have paid together with a clear account showing what they have paid, the date the payment was received, the period that the payment covered and how much is outstanding.
Formal Written Demand Requesting Payment Of Outstanding Rent
You should write to the tenant asking them to clear the outstanding amount straightaway and remind them that all future rent should be paid on the agreed date.
Your letter should draw their attention to the fact that they could be taken to court if they fail to pay and that you could ask for a possession order evicting them if there are arrears of two months or more outstanding.
The letter should be sent by first class post or you can hand deliver it. A copy should go to all parties to the rental agreement.
Contact The Guarantor
If another two weeks pass without payment, you should write to the tenant advising them that you intend to start legal proceedings, including evicting them and taking possession of your property, in which case the rent would still be due.
Where there is a guarantor, you should write to them advising them that the rent has not been paid and that you will look to them to pay if the tenant does not clear the arrears.
Evicting The Tenant
You should wait three weeks before taking the next step, which is a letter advising the tenant that you will be starting legal action. A similar letter should also be sent to the guarantor if there is one.
You can proceed to the next step of starting legal proceedings to take possession of your property when one of the following applies:
- Rent is paid weekly or fortnightly and eight weeks’ rent or more is unpaid
- Rent is paid monthly and two months’ rent or more is outstanding
- Rent is paid quarterly and at least one quarter’s rent has been outstanding for three months or more
- Rent is paid annually and a minimum of three months’ rent has been overdue for three months or more
Where rent is outstanding as above, you can proceed to serve a section 8 notice.
Serving A Notice Under Section 8 Of The Housing Act 1988
Before the court will issue a possession order, you will need to serve a section 8 notice on the tenant. This is a notice under section 8 of the Housing Act 1988 that you intend to seek possession of your property and the grounds on which you are doing this.
It is important that the notice is in the correct format, or the court will not accept it. Your solicitor will be able to draft this on your behalf to ensure that it has the correct layout and includes all of the necessary information.
Court Action For Possession
If the tenant still fails to clear the arrears or vacate the property, you can start court proceedings for both possession of your property and an order requiring the rent arrears and your legal costs to be paid. You can take further action to recover the amount due if the tenant still fails to pay.
Legal Representation
Using an expert rent recovery solicitor to represent you will mean that the correct process is followed and difficulties with the court are avoided. Receiving formal legal letters from a solicitor can also encourage a tenant to settle arrears without delay.
Contact Our Civil Litigation Solicitors For Advice On Recovery Of Rent Arrears
If you are a landlord and you are owed rent by your tenant, speak to one of our rent arrears solicitors, who will be able to represent you to recover the amount owed or, where necessary, start proceedings to recover possession of your property.
At Witan Solicitors, we offer a full range of services for landlords, including rent recovery and possession proceedings. For more information, see our property disputes page.
Email us at info@witansolicitors.co.uk or fill in our contact form and we will be happy to help you. We have offices in Birmingham, London and Northampton.
