Guide for Residential Landlords: What to Do If Your Tenant Has Not Paid the Rent

Non-payment of rent can be one of the most challenging aspects of being a residential landlord. Whether due to temporary financial difficulty or ongoing neglect, landlords must respond carefully and legally to protect their rights and potentially salvage the tenancy. This guide walks you through practical and legal steps you can take. 

Talk to Your Tenant 

The first and most important step is to establish communication. Reach out to your tenant to understand why the rent hasn’t been paid. It could be a one-off delay or indicative of more serious financial trouble. A non-confrontational and empathetic conversation can go a long way toward reaching a solution and maintaining a positive landlord-tenant relationship. 

Talk to the Guarantor 

If your tenant has a guarantor, contact them as soon as the rent arrears begin. The guarantor is legally responsible for covering unpaid rent and may not be aware that the tenant is in default. Prompt communication could resolve the issue more quickly without further legal steps. 

Contact Your Landlord Insurance Provider or Tenancy Deposit Scheme 

If you have landlord insurance that includes rent guarantee cover, notify your provider immediately. Many insurers require early reporting of arrears to validate a claim. Similarly, while tenancy deposit schemes don’t cover unpaid rent, it’s wise to understand how the deposit may be applied should the tenancy end with arrears outstanding. 

Consider Offering Your Tenant a Repayment Plan 

If your tenant is experiencing short-term difficulties, propose a structured repayment plan. This demonstrates goodwill and could lead to the recovery of the full amount over time. Ensure that any plan is documented in writing, with clear terms about dates and amounts. Be realistic and assess whether the tenant’s financial situation supports this option. 

Seek Legal Advice 

If communication fails or arrears increase, it’s essential to seek professional legal advice. A solicitor experienced in landlord-tenant law can guide you through the formal procedures for rent recovery or eviction, ensuring you comply with the law and avoid costly mistakes. 

Consider Taking Steps to Claim Possession of Your Property 

When rent arrears exceed two months, and no repayment plan is agreed upon or maintained, landlords may need to begin possession proceedings. This involves formal notice and possibly court action. The goal is either to recover the property or prompt the tenant to vacate and settle the arrears. 

Serve a Notice of Eviction 

You may serve a Section 8 notice under the Housing Act 1988 if the tenant is in rent arrears. Alternatively, a Section 21 notice may be used to regain possession at the end of a fixed-term tenancy, without needing to prove fault. The notice must follow strict legal requirements—any error can result in dismissal by the court. Legal counsel or landlord associations can help ensure notices are served correctly. 

What Steps Can You Take to Prevent Tenants from Falling into Rent Arrears in the Future? 

While no approach guarantees trouble-free tenancies, landlords can take proactive steps to minimise the risk of rent arrears. 

Reference Potential Tenants Thoroughly, Including Carrying Out a Credit Check 

Always vet potential tenants by conducting reference checks, including credit histories, employment verification, and previous landlord references. A robust tenant screening process can identify red flags and give you confidence in your new tenant’s ability to pay. 

Ask for a Guarantor 

Requesting a guarantor offers a safety net. The guarantor legally agrees to cover rent if the tenant cannot. This is especially advisable for students, first-time renters, or individuals with unstable income. 

Keep Your Property in Good Repair 

A well-maintained property encourages tenants to treat the home with respect and stay long-term. Neglected maintenance can lead to disputes, rent withholding, or early termination of the tenancy. Conduct regular inspections and respond promptly to repair requests. 

Queries 

If you have issues regarding a tenant who is rent arrears then contact Senior Litigation Partner, David Burns on 0207 467 5751 or via email on D.Burns@rfblegal.co.uk.