What Happens if a Tenant Stops Paying Rent? What Steps Should I Take?

1. Stay Calm and Document Everything

The first missed rent payment doesn't mean you need to rush to evict the tenant. Many arrears are short-term issues. However, it's critical to begin documenting the situation immediately:

• Keep a clear log of missed payment dates and amounts.
• Retain a copy of the tenancy agreement, payment history, and any communications with the tenant.
• Record all calls, texts, and emails in a neutral, professional tone.

2. Make Early Contact

Within the first 7 days of missed rent, reach out to the tenant. Sometimes, late payments result from genuine short-term issues. Open communication can often lead to a resolution without further action.

• Politely remind them of the missed payment.
• Ask if there is a reason for the delay and when payment can be expected.
• Offer a payment plan if appropriate.

3. Send a Formal Written Reminder

If rent remains unpaid after 14 days, issue a formal rent arrears reminder letter. This should include:

• Total arrears due
• Payment reference and due dates
• Instructions on how to pay
• A clear request for full payment within a specified time (typically 7–14 days)

4. Consider Mediation or a Repayment Plan

If the tenant responds but cannot pay immediately, consider agreeing to a temporary repayment plan. This must be documented in writing, signed by both parties, and reviewed on a regular basis. Some councils or letting agents offer mediation services to avoid escalation.

5. Use a Section 8 Notice After Two Months' Arrears

Under the new Renters' Rights Bill framework, Section 21 "no fault" notices have been abolished. To begin formal eviction due to non-payment of rent, you must use a Section 8 notice on mandatory grounds.

If a tenant is in two full months of rent arrears, you can serve a Section 8 notice under Ground 8 (mandatory eviction). You must:

• Provide at least 14 days' notice before applying to court
• Use the correct form with accurate arrears information
• Retain proof of service (e.g. recorded delivery or signed receipt)

6. Prepare for Court Action

If the tenant doesn't vacate after the notice period, you must apply to the county court for a possession order. This process includes:

• Filing a claim for possession and potentially arrears recovery
• Attending a hearing (if the case isn't decided on paper)
• Providing evidence of the rent arrears, the tenancy agreement, and notice served

If the court grants possession, the tenant may be ordered to leave within 14–28 days. If they still refuse, you must apply for enforcement via court-appointed bailiffs.

7. Claiming Unpaid Rent and Damages

Even after possession is granted, you can pursue unpaid rent through a county court money claim or attach the arrears claim to your possession application. If the tenant has moved on, you may seek enforcement via:

• Attachment of earnings (if employed)
• County Court bailiffs or High Court Enforcement Officers
• Charging orders (if they own property)

8. Should You Involve a Guarantor?

If the tenant has a guarantor, you can pursue arrears directly from them after providing written evidence of the tenant's breach of contract. Guarantors are legally responsible for rent and sometimes damages, depending on your agreement.

9. Can You Use the Deposit?

You can only access the deposit after the tenancy ends and a dispute process (if any) is completed through the deposit protection scheme. If the arrears exceed the deposit, you will still need to recover the rest through legal channels.

10. Tips to Prevent Arrears in the Future

• Carry out thorough affordability and reference checks before tenancy begins
• Use direct debit or standing order for payments
• Maintain open communication and issue reminders early
• Require a guarantor for higher-risk tenants
• Consider rent guarantee insurance as protection
• Consider working with a reputable lettings agent, like Farrell Heyworth, who can manage all of these steps for you and provide support should you need to take steps to remove your tenant.

When a tenant stops paying rent, landlords must act promptly, professionally, and within the law. The 2025 reforms mean that you can no longer evict without cause. Due to common court delays, early communication and proper documentation are crucial. If rent remains unpaid for over two months, Section 8 provides a route to reclaim your property; however, following every step correctly is essential to avoid costly delays or errors.