How To Manage A Rent Arrears Situation

//

Image showing houses which may have tenants with rent arrears.
Rent arrears and, worse still, having to evict a tenants can be an extremely stressful situation for both the landlord and the tenants. It is important you follow the correct procedure as a landlord. Photo © Chris Heaton (cc-by-sa/2.0)

How To Evict A Tenant In England Or Wales

It can be very stressful as a landlord if your tenants stop paying the rent and even worse if they fall behind by several months.

This guide will help you deal with a rent arrears situation and what you should and should not do as a landlord in England or Wales.

What To Do if Your Tenants Stop Paying Rent

The first step is to establish the reason why the rent is not being paid. There could be a genuine reason such as losing your job or becoming ill, in which case you may be able to help the tenant through this difficult time.

However, if the rent is not being paid because the tenant simply refuses to, then you will need to take steps to evict them.

It is important to remember that you cannot evict a tenant just because they have not been paying rent. You must follow the correct legal procedure, which is explained in more detail below.

You can evict tenants which are in arrears with a Section 8 Notice, a Section 21 Notice, or both, provided they have signed an assured shorthold tenancy agreement for England and Wales.

Image showing houses where the landlord has had to evict the tenants.
Tenants have rights whether you signed a rental agreement or not. You cannot simply evict tenants without following the correct legal procedure. Photo © Malc McDonald (cc-by-sa/2.0)

What To Do If The Rent Is In Arrears for More Than 2 Months

If rent has been unpaid for more than 2 months, your tenant is in rent arrears. You can give them a written notice called a Section 8 Notice.

This notice will state that the tenant must leave the property by a certain date, usually 2 months after the notice has been served. If the tenant does not leave by this date, you can apply to the court for a possession order.

You must serve the Section 8 Notice on your tenant in person, or by post.

Before serving a Section 8 Notice we strongly recommend reading the guidance for the procedure on the UK Government website.

Download Our Trusted Tenancy Agreement

For England & Wales

For Renting Properties: Tenancy Agreement Form
For Individual Lodgers: Room Rental Agreement

What To Do If The Rent Is In Arrears For More Than 4 Months

If the rent is in arrears for more than 4 months, you can give your tenant a written notice called a Section 21 Notice. This notice will state that the tenant must leave the property by a certain date, usually 2 months after the notice has been served.

If the tenant does not leave by this date, you can apply to the court for a possession order.

You do not need to give a reason for wanting your tenant to leave the property and you do not need to serve the Section 21 Notice on your tenant in person, or by post.

As different laws apply to renting a property in England or Wales, please follow the UK Government Guidance on serving a Section 21 Notice for your part of the country.

Photo of houses rented to tenants in England.
If you have problems with tenants the best course of action in the first instance is seek legal advice from your solicitor or from the citizens advice bureau. Photo © Kenneth Allen (cc-by-sa/2.0)

What Not To Do If Your Tenants Stop Paying Rent

  • Do not evict a tenant without following the correct legal procedure
  • Do not threaten or harass a tenant
  • Do not remove the tenant’s possessions from the property without their permission
  • Do not take any action that could damage the property
  • Do not stop supplying essential services to the tenant, such as water or electricity

If you have any questions about rent arrears or the steps you should take, please contact a solicitor or your local Citizens Advice Bureau.

The steps a landlord should take if their tenants fail to pay rent can be difficult to navigate and often landlords are unsure of what they can and cannot do legally. It is important to remember that landlords cannot evict a tenant just because they have not been paying rent – you must follow the correct legal procedure.

What Rights Do Tenants Have?

If you are a tenant who has received an eviction notice, it is important to understand your legal rights. In the majority of cases, landlords must go through a formal legal process in order to evict a tenant.

This process usually requires the landlord to provide evidence that the tenant has failed to pay rent or violated their lease agreement.

Image showing flats rented to tenants in England.
Tenants have the legal right to contest an eviction notice so if you are a landlord you should follow the correct procedure and make sure you have evidence of non-payment of rent. Photo © Bill Harrison (cc-by-sa/2.0)

Contesting An Eviction Notice From A Landlord

Tenants have a right to contest an eviction notice. If the tenant can prove that they have paid rent or that they have not violated their rental agreement, the eviction notice may be overturned.

Tenants also have a right to due process, which means they must be given a chance to address the allegations made by the landlord before any legal action is taken.

If the tenant does not dispute the eviction notice, they usually have 14 days to vacate the property. However, the landlord cannot force the tenant to leave until a court order has been issued.

What Happens If The Tenant Refuses To Leave?

If the tenant does not leave the property after receiving an eviction notice, the landlord can file for an order in court to have the tenant removed.

The landlord can also seek a judgment against the tenant for rent that is owed, as well as any damages caused to the property.

It is important to note that the landlord cannot take any of these actions without first going through the formal legal process.

Go back to our tenancy agreement for England and Wales or view our Landlord Advice Blog