The Rent Didn't Arrive. What Happens Next Could Cost You.
Missed rent is stressful, but how you respond in the first few days can make all the difference. In this week's article, Katie explains the correct process for dealing with rent arrears, the mistakes many landlords make, and why acting quickly can protect both your income and your legal position.
The Rent Didn't Come In. Now What Do You Actually Do?
It is the situation every landlord dreads most.
The date the rent is due comes and goes. Nothing in the account.
If you are with a full management service, this is someone else's problem to deal with. They are onto it the same day. They know the process. They handle it.
If you are on let-only, it is entirely yours to sort out.
And how you respond in the first few days matters more than most landlords realise.
The first mistake most landlords make
Waiting.
Giving the benefit of the doubt. Assuming it will sort itself out. Not wanting to create conflict.
Those instincts are completely understandable. But every week you wait is another week of arrears building.
And the legal clock for serving the correct notices does not start until you actually serve them.
The right approach is prompt, professional and proportionate.
Contact the tenant on the day rent is missed. Establish the reason. Set a clear and reasonable deadline for payment. Document everything from the start.
If payment does not come and arrears begin to build, take advice on the correct legal process immediately. Do not wait and see.
The legal process in brief
For rent arrears, the relevant route to possession is Section 8 of the Housing Act 1988.
Ground 8 applies where there are at least two months of arrears at both the date of the notice and the date of the hearing. It is a mandatory ground — the court must grant possession if it is established.
Grounds 10 and 11 cover smaller arrears and persistent late payment.
Serving the notices correctly, in the right format and within the right timeframes, is critical. A mistake means starting the process again from scratch.
What we do when arrears arise at Harrisons
Rent collection is monitored daily. If rent does not arrive on the due date, we are onto it the same day. We contact the tenant, find out what has happened and take the appropriate steps.
If arrears build, we follow the correct legal process from day one. Our landlords are kept informed throughout but they are not carrying this themselves.
What one landlord told us
A landlord came to us after handling a rent arrears situation himself that took over six months to resolve.
He had not followed the correct process from the start. By the time he served the right notices the arrears were over £3,000.
With proper guidance from day one it would have been resolved in half the time.
I did not know what I did not know, he said. And that cost me.
Your action point this week
Do you know the correct legal process for dealing with rent arrears? The specific notices, the timeframes and the format they need to be served in?
If you are not completely sure, that is a gap worth closing.
If you are on a let-only arrangement and you are starting to wonder whether it is actually working for you, come and talk to us. Switching to full management is a lot simpler than most landlords expect, and we will walk you through exactly what it involves. Call us on 01204 659670, email katie@harrisonsnet.co.uk or visit harrisonsnet.co.uk.
Here's to your property success!
Katie
Harrisons Estate Agents
01204 659670 | katie@harrisonsnet.co.uk | harrisonsnet.co.uk