Being a landlord can either be very straightforward and stress-free or it can be particularly complex, with the main variable being the relationship between tenants and landlords.

The easiest way to navigate this is with the help of an experienced letting agency, which can work on your behalf to ensure that rent is received on time, inspections are booked when required and repairs are undertaken when needed.

One of the biggest points of dispute between landlords and tenants involves rent, particularly if it is not paid on time and arrears are beginning to build.

With the Renters Rights Bill removing Section 21 evictions and extending the threshold for arrears from two months to three months, with a four-week notice period, opening a dialogue is an essential part of handling arrears and ensuring a beneficial outcome for everyone.

Take A Few Days To Prepare

If a rental payment does not appear by midnight on the due date, resist the temptation to immediately send a reminder. Direct debits, standing orders and other scheduled payments will not go out on weekends, sometimes a bank can have an issue or there are other technical expectations.

Whilst you do not necessarily have to take a naively charitable interpretation of a missed payment, a day or two late caused by a bank issue may not be a sign of financial irresponsibility or the risk of missing a payment entirely.

If it happens regularly, or payment does not arrive in three or four days, a quick and friendly reminder is often enough to sort out any issues.

Be Compassionate And Understanding

Few tenants intentionally refuse to pay their rent, and it is typically a sign of financial difficulties. Most will want to pay and not build up arrears, and it is important to engage with tenants on the assumption that they want to pay what they owe.

Finding out the reason why they have not paid is the first step towards developing a solution that avoids formal reminders, court orders or eviction notices.

If there are issues with budgeting or a temporary shortfall, explore if they qualify for options such as housing benefit.

Consider Offering A Payment Plan

Context is important when it comes to rent arrears, and a long-term tenant who has started to struggle is different to a new tenant who has not paid outside of the initial deposit.

A payment plan can help spread out the repayment of arrears over time, ensuring that you will get your money back at a rate that is reasonable for the tenant to pay.

If there is an agreement of this type, make sure it is in writing and has been signed by the tenant and yourself. 

Only Use The Court As A Last Resort

It usually takes at least two months of arrears before a landlord can start eviction proceedings, so it should be utilised only as a last resort.

If there is a guarantor, then engage with them to help with the repayment of rent arrears. Either they will pay or will engage with the tenant to help with repayments.

Another option is mediation, which is faster than the courts, often required by the small claims court if a tenant disputes the claim, and can avoid the inherently adversarial nature of the courts.