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HomeBlogWhat to Do When a Tenant Falls Behind on Rent

What to Do When a Tenant Falls Behind on Rent

A tenant falling behind on rent is one of the most common situations landlords face, and one of the most stressful if you don't know the actual process. Since the Renters' Rights Act, the rules around arrears have genuinely changed, longer notice periods, a higher threshold, and a couple of details that catch landlords out if they're working from what used to be true.

Start with communication, not paperwork. Most arrears situations resolve without ever reaching a notice, a tenant going through a rough patch who's kept informed and given a realistic repayment plan is far more likely to catch up than one who's ignored until the numbers get serious. That said, document every conversation and agreement in writing, even a friendly one, since it becomes the evidence trail if things don't improve.

The three grounds that actually apply. Rent arrears run through three grounds under Schedule 2 of the Housing Act 1988: Ground 8, mandatory if the tenant owes at least 3 months' rent (13 weeks on a weekly tenancy), the court must grant possession if it's proven. Ground 10, discretionary, for arrears below that threshold. Ground 11, discretionary, for a tenant who persistently pays late even without current arrears. The standard advice, and ours, is to include all three on the same notice, not just Ground 8 alone.

The threshold and the notice period have both changed. Ground 8's arrears threshold rose from 2 months to 3 months, and the notice period across all three arrears grounds increased from 2 weeks to 4 weeks. One detail that's easy to miss: arrears caused specifically by a delay in Universal Credit payments are disregarded when calculating whether the threshold is met, worth knowing before you assume a tenant on benefits is automatically further behind than they actually are for these purposes.

Arrears have to exist at two points, not one. For Ground 8 specifically, the tenant has to be at or above the threshold both when you serve the notice and at the court hearing date. If a tenant pays enough to drop below 3 months' arrears before the hearing, Ground 8 becomes unusable, however bad things looked when you served notice. This is exactly why including Grounds 10 and 11 on the same notice matters, they don't require you to still be above the threshold, the court simply weighs whether possession is reasonable.

What this means practically. Keep a clear, dated rent ledger from the first missed payment, not just once things escalate. Serve notice correctly, on the right grounds, with the right notice period, the moment it's genuinely justified, rather than waiting and hoping. And don't assume a partial payment resolves anything on its own, it might reduce your options rather than the tenant's problem.

Arrears situations are exactly where professional management earns its place, timely tracking so nothing drifts unnoticed, correctly drafted notices citing the right grounds, and someone handling an awkward conversation who isn't the tenant's landlord directly. We manage this process for every property we look after, so arrears get caught early, not months in.

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