As a landlord, it is crucial to collect rent payments on time. When tenants fall behind on their rent, it can have a negative impact on your finances and cause stress. In this blog, we’ll explore the best methods for chasing rent arrears and how to reduce the risk of arrears occurring in the first place.
- Communicate with the tenant
The initial step in chasing rent arrears is to communicate with the tenant. Send a friendly reminder about the overdue rent and ask if they need any assistance. If the tenant has a valid reason for not paying the rent, such as illness or job loss, work with them to find a solution. This could include reaching an agreement for a payment plan or allowing them to pay in instalments.
- Put it in writing
If the tenant does not respond to your first communication, put your request for payment in writing. You can send a letter or email, outlining the amount of rent owed, the due date, and the consequences of non-payment. Be sure to keep a copy of the letter for your records.
- Consider court action
If the tenant continues to neglect the rent arrears, you may need to consider court action. In the UK, you can apply to the court for a possession order or a money judgment. The court will then send the tenant a notice of the proceedings and, if they do not respond or attend the hearing, the court may make a decision in your favour.
- Minimizing the risk of rent arrears
To reduce the risk of rent arrears, it’s crucial to thoroughly screen tenants before granting them a tenancy. This may involve checking their credit history, income, and employment status. Additionally, you may wish to take a rental deposit, which can be used to cover any unpaid rent or damages at the end of the tenancy.
In conclusion, chasing rent arrears from tenants can be a demanding and time-consuming process, but by communicating with the tenant, putting it in writing, and taking court action, if necessary, you can effectively recover the rent owed to you. By taking steps to minimize the risk of rent arrears, you can ensure that your rental properties remain a stable source of income for years to come.