What Can Landlords Do When a Tenant’s Rent is Late?

Chasing late rent can be frustrating for landlords. It’s a common issue, often caused by tenants forgetting or struggling with money. This guide will show you how to deal with late rent payment and protect your rental income.

Keep reading for simple steps that can save time and stress!

Table of Contents

Steps to Take When Rent is Late

Late rent can rattle any landlord, but don't panic. Taking quick action can help make things right without creating bad blood.

Communicate with the tenant

Speak to the tenant as soon as rent payments are missed. Ask why they have not paid and listen carefully. Politeness can make a big difference, even if you feel frustrated. Some tenants may struggle with the cost of living or delays in housing benefit.

Clear communication sets expectations early. Let them know when payment is needed and what happens if it’s late again. Automated reminders from tools like Landlord Studio also help reduce stress for landlords.

Keep written records of all chats, texts, or emails for your paper trail—it protects both sides later on!

Send a late rent notice

A late rent notice should go out five days after the payment due date. This written reminder clearly states how much is owed, including any fines or interest. If unpaid after 14 days, send a formal rent arrears letter to prompt action.

Make the letter firm but polite. Include critical details like the missed payments and tenancy agreement terms breached. Clarify possible next steps such as eviction notices under Section 8 or Section 21 of the Housing Act 1988 if no payment follows.

This keeps legal records intact while urging tenants to act quickly.

Note: Once Labour’s Renters Rights Bill comes into effect later this year, Section 21 notices will no longer exist. Read our landlord’s guide to the Renters Rights Bill to find out what you should do instead.

Offer payment plan options

Split the overdue rent into smaller chunks. A repayment plan can help tenants repay arrears over time. This shows you care about their situation while keeping rent payments on track.

For example, if a tenant owes £600, they could repay it in £100 installments over six months.

Some tenants may struggle long-term due to job loss or reduced income like universal credit. Letting them end the tenancy early might be an option if they can't afford the rental property anymore.

This helps avoid evictions and court costs while giving both parties breathing space.

Legal Measures for Late Rent

Sometimes, you might need to take formal steps if rent stays unpaid. Knowing tenancy laws and your rights is key here.

Contact the guarantor (if applicable)

A guarantor signs to cover rent if the tenant can't pay. If rent is late, reach out to them quickly. Explain the issue and share proof, like receipts or a rental agreement. Guarantors are often parents or close relatives, so clear communication helps resolve pending debts faster.

If joint tenancy applies, check if other tenants have a guarantor too. This can split responsibilities evenly and ease the process. Under tenancy law, you can also ask for employment details of a guarantor if needed for payment planning or legal procedures later on.

Begin eviction proceedings (if necessary)

Serving an eviction notice becomes crucial after all other options fail. Landlords can issue a Section 8 notice if the tenant breaches the tenancy agreement, such as not paying rent.

This route demands specific evidence, like unpaid rent statements or written communication logs, should it escalate to court eviction. For no-fault evictions under an assured shorthold tenancy, landlords may use a Section 21 notice.

Court applications for possession orders might follow if tenants ignore these steps. An accelerated possession order speeds up this process but won’t recover unpaid rent. Involving legal advice or mediation services ensures compliance with landlord and tenant laws while avoiding unnecessary delays in reclaiming property rights.

Conclusion

Late rent can be stressful, but it’s manageable. Being proactive helps keep things on track. Clear communication and knowing your legal options are key. For a hassle-free experience, consider Jones & Quinn's Guaranteed Rent Service—it ensures steady income without the worry of late payments.

Peace of mind is worth every penny!

FAQs

1. What should landlords do first when a tenant’s rent is late?
Start with tenant communication. Politely remind them about the overdue payment and ask if there’s an issue causing the delay. Clear dialogue often resolves problems early.

2. Can landlords evict tenants for unpaid rent?
Yes, but they must follow legal steps like issuing Section 8 or Section 21 notices, depending on the situation. These are part of the eviction process under tenancy agreements.

3. Are there any schemes to help tenants struggling to pay rent?
Tenants may qualify for housing benefits, income support, or employment and support allowance. The breathing space scheme can also provide temporary relief from debt pressures.

4. Do landlords need landlord insurance in case of missed payments?
Landlord insurance can cover losses from unpaid rent or damages during tenancies, offering peace of mind in difficult situations.

5. What role does the local council play in these cases?
The local council can mediate disputes between landlords and tenants or offer advice on housing issues like no-fault evictions and arrears recovery.

6. Is legal assistance necessary for evicting a tenant?
Legal assistance might be helpful when dealing with complex cases involving money judgements, assured tenancies, or breaches under the Landlord and Tenant Act 1985.