A help in need – the Landlord Law Rent Arrears Action Plan

Rent arrears is not a new problem and is something every landlord fears.  If a tenant stops paying rent, this can cause big financial losses.

Landlords who have not experienced this before often panic and don’t know what to do.

The ‘rabbit in headlights’ panic-stricken response of doing nothing and hoping the tenants start to pay again is understandable but not the best way to deal with things!

This is why I wrote the Landlord Law Rent Arrears Action Plan.  It was written originally about 15 years ago but has been updated regularly since then and is very detailed.

About the Plan

The Landlord Law Rent Arrears Action Plan sets out a plan of action you can follow, starting from day 1.

It is divided into five parts as follows:

• Preliminary matters – this section discusses things you should understand and deal with before you start the action plan.  For example, paperwork, what to do if tenants want rehousing, mediation, and potential tenant defences.
• Stage 1 – this is probably the most important section and sets out things you should do immediately the tenant falls into arrears.  This is always the best time to deal with things.  We cover things you can do to help tenants to pay and include a number of draft letters you can use
• Stage 2 – this is when the tenant is in arrears of two months or more.  An important stage as it entitles you to use the mandatory rent arrears ground for possession.  We look at the notices you can serve and also discuss your options if tenants are in receipt of benefit.
• Stage 3 – this is about court proceedings.  We discuss the options available and give guidance (we have a separate eviction guide which tells you how to actually bring a claim).
• Stage 4 – County Court Judgements.  Sometimes you will not want to evict tenants but just want to apply for a CCJ.  This section gives guidance and links to further resources, plus letters before action you can use.

The Plan also has checklists you can use, links to other parts of the site, and a lot of helpful draft letters.

Stage 1 has recently been updated to include a lot of guidance on how you can help tenants source help, including grant aid, although for a more comprehensive guide, see here.

Stage 2 also discusses in some detail how to create a proper schedule of arrears (necessary if you go to court citing rent arrears), and we have a self-calculating form you can use to make this an easier task.

Plus if there are any issues not covered in the plan, you can (if you are a member) always post a question on our Members Forum. I will normally answer this within 1 working day.

A resource in time of need

The Rent Arrears Action Plan is available to all Landlord Law members and is an invaluable guide for you to use the moment your tenants fail to make a rent payment.

This is important because the best time to deal with this problem is  right at the start. If you allow things to drift and just hope tenants will pay, arrears quickly mount up until the only option is eviction – which will take up to a year during which you will not be paid anything.

Eviction should always be your last resort and should only used if all other options have failed.  The Rent Arrears Action Plan will help you follow other procedures so, hopefully, you (and indeed your tenants) will not have to endure the stress of court proceedings.

To find out more about this service, see here.

Members will find the Rent Arrears Action Plan here.