Rent arrears are the most common problem a landlord faces and the one most often handled badly, usually by doing nothing for two months and then doing something drastic. The first 30 days decide most cases. This is the sequence we follow for every managed property in England, and it works whether the tenant has hit a bad month or has stopped paying altogether.

Day 1: the rent has not arrived

Check first. Standing orders fail, banks have outages and rent days fall on weekends. If it is genuinely missing, contact the tenant the same day by phone and follow up in writing, by email or text, so there is a record. Keep the tone factual: the rent due on the date was not received, please confirm when it will be paid.

Most tenants respond at this point. A forgotten standing order or a delayed salary is fixed within days. Note the call, the response and the promised date.

Day 3 to 7: the promised payment has not come

Send a written reminder that states the amount owed, the date it was due and a date by which you expect payment. Ask the tenant to tell you if something has changed. Job loss, illness and relationship breakdown are the usual causes and the earlier you know, the more options you both have.

If the tenancy has a guarantor, this is the point to tell them in writing that the account is in arrears. Do not wait until the arrears are large. A guarantor who learns about £4,000 of arrears in one letter will look for reasons why the guarantee does not apply.

Day 7 to 14: agree a plan or establish that you cannot

If the tenant is in genuine difficulty, offer a written repayment plan: the normal rent plus a fixed amount each month until the arrears are cleared. Keep it realistic. A plan the tenant cannot meet fails in month two and you have lost six weeks.

Two things worth knowing at this stage.

  • Universal Credit. If the tenant receives Universal Credit, the housing element can be paid direct to the landlord once arrears reach two months' rent, and in some cases sooner. Apply through the managed payment to landlord process. The tenant's consent is not required once the threshold is met.
  • Late payment interest. If the tenancy agreement provides for it, interest can be charged on rent more than 14 days late at up to 3% above the Bank of England base rate. It rarely changes behaviour, but it is a permitted payment and it belongs in the arrears schedule.

Day 14: formal letter

If nothing has been agreed, send a formal arrears letter. It should set out the amount owed with dates, refer to the tenant's obligation under the tenancy, invite them to contact you to discuss a plan, and state that you will consider serving notice if the arrears are not addressed. This letter is evidence later, so keep it measured and accurate.

Things not to do at any point

  • Do not use the deposit. It cannot be drawn on during the tenancy, and a demand that the tenant top it up is a breach of the scheme rules.
  • Do not change the locks, remove doors, cut off utilities or turn up repeatedly without notice. Each is harassment or unlawful eviction under the Protection from Eviction Act 1977, a criminal offence, and gives the tenant a damages claim that will usually exceed the arrears.
  • Do not withhold repairs. The repairing obligation does not depend on rent being paid, and an outstanding repair becomes the tenant's counterclaim.
  • Do not accept a lower rent informally. If you agree a reduction, write it down as a temporary arrangement with a review date, or a court may treat the reduced figure as the rent.

Day 30: decide

By now one of two things is true.

A plan is in place and being paid. Continue, monitor every payment and keep the schedule updated. Send a short written acknowledgement each month. If a payment is missed, go back to day 1.

No plan, or the plan has failed. It is time to serve a Section 8 notice. At one month's arrears you cannot yet rely on the mandatory ground 8, which needs three months' arrears both at service and at the hearing. But you can serve on grounds 10 and 11, which are discretionary and only need some arrears and a pattern of late payment. Many landlords serve grounds 8, 10 and 11 together as soon as ground 8 is available, so the notice survives a last-minute part payment. The notice period for all three is four weeks.

Our guide to possession after Section 21 covers the notice and court process from that point.

After the tenancy

Arrears do not disappear when the tenant leaves. The deposit can be applied to them at the end of the tenancy through the scheme's process. The balance is a debt that can be pursued through the county court money claim service, and if the former tenant is working, by an attachment of earnings order. Whether it is worth pursuing depends on the amount and what you know about the tenant's circumstances.

How we do this for managed landlords

Rent is reconciled daily. A missed payment triggers contact the same day, the letters go out on the timetable above and every message is logged against the tenancy so the evidence file builds itself. Landlords are told at day 1, day 14 and day 30, with a recommendation at each point. Where a case needs recovery action, our sister practice Marchbank and Vale Associates handles arrears recovery and possession paperwork. It is not a firm of solicitors.

If you are self-managing and already have arrears, get in touch. We take over files at any stage, including part way through.