Rent arrears

Late or unpaid rent can have a huge effect on your own finances.

Try to deal with rent arrears as soon as possible. More missed payments mean it will be harder for tenants to repay everything.

Talk to tenants about rent arrears

Contact your tenants to find out why they have not paid the rent. There could be a good reason for this. There might be ways to resolve the situation. Our mediation service might be able to help you reach agreement with your tenants. 

Tenants can miss payments due to: 

• illness  
• banking problems 
• benefits or salary payment delays 
• the tenant being unhappy with the property. For example, if repairs need done and you have not arranged this

Send a letter or email to your tenants after you speak to them. This message should state: 

• what rent has not been paid
• any repayment plan the tenant has agreed to
• anything you have agreed to do, such as repairs

Your tenants might be having money problems. They can find out about extra financial support.

Agreeing a plan to repay rent arrears

It can be difficult for tenants to repay arrears in one lump sum. Talk to your tenant about repaying the debt in regular instalments. Make sure to get any agreement you reach in writing.  

Our Housing Mediation Service may be able to help you and your tenant with this

Dealing with arrears when a tenant is on benefits

Social security benefits rarely cover the full amount of rent for private tenants.

If your tenants are struggling to pay the full amount of rent, you can: 

• make sure tenants on Universal Credit are getting help with rates  
• encourage tenants to apply for a Discretionary Housing Payment (DHP) 
• ask for housing-related benefits to be paid directly to you 
• arrange for deductions from benefits to go towards arrears 

Discretionary Housing Payment 

Tenants can apply for an extra payment to help with a rent shortfall. They have to already be getting Universal Credit or Housing Benefit to do this. 

It’s called a Discretionary Housing Payment or DHP. It can help to prevent arrears from building up.

Rate Rebate 

Tenants who get Universal Credit need to apply separately to get help with rates. Tenants can still get help with rates even if the rent includes rates.

Getting benefits paid directly to the landlord or agent 

Some tenants prefer to have benefits paid to them directly. But if rent arrears continue, you can ask for benefit payments to be made directly to you instead.  

For tenants getting Universal Credit who are in two months’ arrears you can:  

• set up a direct payment online 

For tenants getting Housing Benefit who are in six weeks’ arrears you can: 

• call the Housing Executive on 0344 8920 902 

Setting up deductions from benefits to go towards arrears 

If rent arrears continue, you can ask for money to be taken from the tenants’ benefits to go towards the arrears. The tenant's benefits are made up of different elements. Up to 5% of their standard allowance can be deducted.

You need to contact the relevant benefit agency to request deductions from benefits.  

Eviction for rent arrears

It can often be easier to work with a tenant to reduce arrears rather than ending the tenancy. But if a tenant does not pay rent, it means they are breaching the tenancy terms. You have the right to evict a tenant who does not address rent arrears.  

You will need to write to your tenant and tell them: 

• you are ending the tenancy because they have not paid rent 
• the date by which they must leave the property 
• what you plan to do to recover the unpaid rent  

Make sure you give your tenant the correct notice period in writing. If your tenant doesn’t move out, you must follow the correct legal process to evict them. 

Options for recovering rent owed

If your tenant moves out and still owes you rent, you can: 

• ask for unpaid rent to be taken from the deposit
• contact your tenant’s guarantor to recover arrears 
• take legal action against your tenant and/or their guarantor 

You will need to give evidence of the money owed, for example, bank statements and written correspondence with your tenant about the debt.  

You can use the small claims court if you are pursuing arrears up to £5,000. If you want to make a claim for more than £5,000 you should speak to a solicitor.