A landlord’s guide to managing rent arrears

When a tenant falls into rent arrears, it creates a stressful situation for everyone involved. A tenant suddenly being unable to pay their rent is usually brought on by something serious like losing their job or being unable to work. 

And for landlords, unpaid rent can disrupt cash flow needed for mortgage payments, insurance, and property maintenance. 

It’s crucial to address rent arrears as soon as possible. The longer they accumulate, the harder it becomes for your tenant to repay the debt, and the more costly it is for you. 

3 steps to resolve rent arrears

1. Open lines of communication

By reaching out to your tenants as soon as you notice rent is unpaid, you can start to understand the extent of the problem and how you might be able to support them.

For example, the tenant might explain that they’ve changed banks so the money will be paid very soon. Alternatively, they might tell you that they’ve lost their job and won’t be able to pay their rent in full until they get a new one.

If your tenant feels they can speak to you openly and honestly, it’ll be easier to work together to resolve the problem.

Although you may initially contact your tenant by phone or email, it may be more suitable to have a more in-depth conversation in person.

2. Create a realistic repayment plan

If the arrears are significant, a formal repayment plan can help your tenant clear their debt in manageable instalments.

When creating a plan, consider:

• how much the tenant can afford – discuss their monthly income and outgoings to agree on a realistic amount. An unaffordable plan is destined to fail
• the repayment schedule – agree on how much will be paid back, how often, and on which dates
• the duration of the agreement – set a clear timeline for when the debt will be cleared

For example if the tenant owes £1,200, a repayment plan could look like this:

• a repayment plan over six months
• the tenant pays £200 a month
• payment due on the fifth of the month (on top of their existing rent)

3. Guide tenants towards financial support

Your tenants may not be aware of the financial help available to them. Pointing them towards support can help them to get their finances back on track.

Some of the help that tenants in arrears could access includes:

• Universal Credit or housing benefit
• paying less council tax
• cost of living payments
• Personal Independence Payments
• attendance allowance
• winter fuel payments

Are there grants to clear rent arrears?

As well as the support options above, tenants in arrears may also be able to get a grant (money they don’t have to pay back) to clear their rent arrears.

These include:

• Discretionary Housing Payments
• local council grants
• grants from charities

For more information about how to apply for these grants, tenants should contact the following organisations:

• Citizens Advice
• National Debtline
• StepChange Debt Charity

Landlords should also be aware of The Debt Respite Scheme (also known as breathing space), which can stop you from chasing or adding to debt such as rent arrears for a set period.

Rent arrears – what if communication fails?

Contacting a guarantor

If your tenant has stopped responding to you, and they have a guarantor, you can contact them. As they’re legally liable for unpaid rent, the guarantor may be able to help resolve the arrears or encourage the tenant to communicate with you. 

You should only take this step after several failed attempts to reach the tenant directly.

Evictions are a last resort

If your tenant is in arrears and you’ve not heard from them or their guarantor after several attempts to contact them, you may need to start thinking about eviction.

Eviction should always be the final option. It can be a long, expensive, and stressful process for both landlords and tenants.

Due to the complexity of evictions, you should seek professional legal advice before starting the process.

Issuing a Section 8 notice for rent arrears

If your tenant owes a minimum of eight weeks’ rent, you can issue them with a Section 8 notice to start eviction proceedings.

Section 8 has a minimum notice period of two weeks and can only be used when a tenant is in serious arrears.

The eviction notice will ask the tenant to leave the property by a specific date. If they fail to do so, then the landlord will have to go through the courts to regain possession of their property.

Read our in-depth guide on Section 8 evictions for more information.

Rent arrears FAQs

How many months of rent arrears before I can evict a tenant?

In England and Wales, you can typically start the eviction process using a Section 8 notice if the tenant is at least two months behind on rent. However, the rules can be complex, so seeking legal advice is recommended.

Can I use my tenant’s deposit to cover rent arrears?

You may be able to use the tenancy deposit to cover unpaid rent at the end of the tenancy, but this must be agreed with the tenant or approved by your tenancy deposit protection scheme. You can’t use the deposit to cover rent during the tenancy itself.

What’s the difference between a Section 8 and Section 21 notice?

A Section 8 notice is used when a tenant has breached their tenancy agreement, such as by having rent arrears. Section 21 evictions will be abolished from 1 May 2026, so a Section 8 notice will be your only means of eviction. 

How can rent guarantee insurance help with rent arrears?

Rent guarantee insurance (or tenant default cover) can provide landlords with financial protection if tenants fail to pay rent.  Rent guarantee insurance policies usually cover up to £100,000 in unpaid rent and can give you peace of mind in a difficult situation. 

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