Tenants falling behind on rent is one of the most common challenges landlords and letting agents face, whatever the state of the market. Let’s take a look at the implications of non-payment and some top tips to reduce the risk.
The short answer: reference tenants thoroughly before they move in, keep clear written records, and speak to the tenant the moment a payment is missed. If arrears build up, serve the correct legal notice for your nation (in England, a Section 8 notice on the rent-arrears grounds) and apply to the court or tribunal for possession. Rent guarantee insurance can protect your income while you resolve the situation.
Demand for rental property is soaring, largely due to the difficult mortgage market facing young house movers and first-time buyers. This has allowed landlords to confidently expand their portfolios and in most areas of the UK, increase their rent.
It would be a mistake to think that nothing could go wrong. It’s arguably the moment investors become overly confident that they lose grip on what should be an ideal situation for landlords. One of the biggest concerns currently across the country is the issue of rental arrears.
As redundancies and pay freezes are made by employers – a growing number of tenants are finding themselves in financial difficulty. Let’s not forget that the problem is magnified by soaring utility costs, food and fuel prices.
Combining these factors with huge debts that families across Britain are trying to pay down, it is somewhat understandable why so many tenants may be struggling to make their rent payments.
Impact on landlord’s finances
Failure of the tenant to pay on time can have a serious impact on a landlord’s own personal finances. Those who have encountered the problem will know just how severe the repercussions can be. Most buy to let landlords will rely on their rental income to meet mortgage repayments. If tenants’ arrears persist, owners can face an increased risk of repossession. So if you’re renting out a house to tenants unable – or unwilling – to pay their rent, what are your rights?
Landlord’s rights towards a tenant not paying rent
- Firstly, ensure that your tenant is aware of the situation, from what is expected of them and the fact that their failure to make timely payments could have serious legal implications. This should be detailed on the tenancy agreement and signed by both parties before the tenants take possession of the property. We are still hearing of landlords that have verbal agreements with tenants – this is a huge risk as it is very difficult to prove in court, with no evidence.
- If they fall behind on several payments then issue them with a formal reminder of their rental obligations. Written communication is best and you should always keep your own copy of any correspondence, just in case the matter ends up in court.
Should your difficulties continue, you may begin thinking about your options with regards to getting the tenant out of your property.
Possession Options
Since 1 May 2026, possession in England is sought under Section 8 of the Housing Act 1988. Section 21 “no-fault” evictions have been abolished, so you must rely on a legal ground such as rent arrears.
- You must issue the tenant with a Section 8 notice citing the rent-arrears grounds. Ground 8 is mandatory where at least three months’ rent is in arrears (the threshold increased under the Renters’ Rights Act 2025), while Grounds 10 and 11 are discretionary. You will need to specify the legal grounds on which you intend to proceed, and provided the court believes your reasoning to be fair and justified, you will be issued with a possession order that allows you to reclaim your property.
You must clearly state the ground you are relying on and provide evidence, such as an up-to-date rent statement. Where at least three months’ rent is outstanding, Ground 8 is mandatory, which means the judge must grant possession once the ground is proven.
Unfortunately, the process is not completely without fault. Even if the court does grant a possession order, regaining control over the property is not always a simple and hassle-free procedure.
Should the tenant still be in residence by the time their notice period expires, you are then legally required to issue a notice of intention to seek possession. This formally indicates that you will be applying to the courts to have them evicted. Provided the court rules in your favour, the tenant will be given a specific date by which they need to vacate the dwelling.
However, the courts have the option to ‘suspend’ the possession order. This would allow the tenant to remain living in the property, provided they meet certain conditions laid out by the judge.
Rent Arrears Eviction Rules in England, Wales and Scotland
The tips above apply across the UK, but the legal process for recovering possession when a tenant will not pay differs by nation. Always follow the rules for the country your property is in.
England
Section 21 “no-fault” evictions were abolished on 1 May 2026, so possession is sought under Section 8 of the Housing Act 1988. For rent arrears you can rely on Ground 8 (mandatory where at least three months’ rent is unpaid), plus the discretionary Grounds 10 and 11. You serve the notice on Form 3A, then apply to the county court if the tenant does not leave; arrears-only claims can use the Possession Claim Online service.
Wales
Tenants are “contract-holders” under occupation contracts governed by the Renting Homes (Wales) Act 2016. Serious rent arrears (broadly eight weeks’ or two months’ arrears) is a mandatory ground: you serve a serious rent arrears possession notice (Form RHW20) giving 14 days, and can then make a possession claim in the county court within six months.
Scotland
Most lets are Private Residential Tenancies under the Private Housing (Tenancies) (Scotland) Act 2016. For rent arrears you serve a Notice to Leave relying on Ground 12 (treated as mandatory where the tenant has been in arrears for three or more consecutive months), giving 28 days’ notice. You must first meet the pre-action requirements (set out the arrears in writing, try to agree a repayment plan and signpost financial support), then apply to the First-tier Tribunal for Scotland (Housing and Property Chamber) rather than the courts.
Tips on How to Deal with a Tenant Not Paying Rent
The best way for landlords to protect themselves from a tenant not paying rent is to avoid picking the wrong tenants in the first place. Yes, it is true that anyone can fall behind with rent – particularly amid economic uncertainty. However, landlords can potentially reduce their risk of being plagued by tenants in arrears by carefully screening their prospective suitors before handing over any contracts.
Tip 1 – Tenant Referencing
As a starting point, you should always attain comprehensive tenant referencing. These checks will look in detail at a) your prospect’s credit history, b) their employment history and c) a previous landlords reference – allowing you to make an informed judgement as to the risk of them failing to pay up. Some landlords will also request 3 month’s bank statements to show the tenant is able to manage their incomings and outgoings on a monthly basis. Remember, it is the industry standard that the tenant pays for the cost of obtaining references – not the landlord.
Tip 2 – Meet the Tenant at Their Property
Arrange a meeting at the tenant’s own property to discuss the terms of the agreement. This is a fantastic opportunity to see how the tenant lives in another landlord’s property.
Tip 3 – Google Search
You would be surprised that just by searching the Internet using either the tenant’s email address or name could reveal vital information about your tenant. There are a number of ‘name and shame’ websites and forums where victim landlords have offered their tenants details online for the aid of future unsuspecting landlords.
Tip 4 – Solid Tenancy Agreements
Create a legal written tenancy agreement and have both parties sign. As above, do not enter into verbal agreements with tenants. Always agree on 1) the rental price 2) payment frequency and 3) length of the agreement
Tip 5 – Always have an Inventory
This document is often overlooked by landlords – particularly those that let “unfurnished” property. They are under the misconception that because there are no furniture items in the property, there is no need for an inventory. This is wrong, you should list ALL items in the property from carpets on the floor to light shades on the ceiling.
Tip 6 – Treat your Let as a Business
Try to remove the emotional aspect of the transaction. This is more difficult for landlords letting our their own home for understandable reasons.
Tip 7 – Visit the Tenant Quarterly
It is your right to be able to visit the property to carry out an inspection. Just be mindful that visiting too frequently, i.e. once a month could be seen as harassment in the eyes of the law – remember, the tenant has the right to “quiet enjoyment” of the property. Every 3 months is ideal. You must send the tenant a letter to confirm your appointment and it must be received no earlier than 24 hours in advance.
Tip 8 – Keep the Rent Under Market Value
Quite simply, if the tenant feels that they are getting a good deal on their property, they will be more inclined to pay the rent and to stay longer. How much rent should I charge my tenants?
Tip 9 – Rent Guarantee Insurance
Landlords have a superb opportunity to mitigate rental arrears with rent guarantee insurance, also known as rent protection. It is designed to cover your rent if the tenant cannot pay. LettingaProperty.com includes rent protection as a built-in service benefit (we are not an insurance company) in its Rent Assured plan (up to £3,000 over three months) and its Complete Care plan (up to £12,000 over six months, with your rent paid to you within seven days), and both can be upgraded for higher cover.
Tip 10 – Communicate Regularly with your Tenant
It is best to have open lines of communication with your tenants. If you notice that the rent is late, call the tenant and have a frank conversation with them. Try to find out if they are experiencing any financial issues. Talking to a landlord recently, I was impressed with a solution to help the tenant with their finances but at the same time, ensuring the landlord got paid and that was to increase the frequency of payments. Instead of once a month, the tenant agreed to pay once a week which she found easier to manage.
Tip 11 – Unresponsive Tenants – Abandonment
You’ve not been paid and can’t contact the tenant, what can you do? Legally there’s a procedure to follow which can ultimately be drawn out and costly. Under The Protection from Eviction Act 1977 a landlord must prove that a tenant has abandoned the property. Read our article on non-payment and abandonment.
Tenant Not Paying Rent: Frequently Asked Questions
What should I do first if my tenant stops paying rent?
Contact them as soon as a payment is missed to understand the problem, and confirm the arrears in writing. Keep copies of all correspondence. Many arrears situations can be resolved with a repayment plan or by changing the payment frequency before any legal action is needed.
How much rent arrears do I need before I can evict in England?
To use the mandatory rent arrears ground (Ground 8) in England, at least three months’ rent must be unpaid at both the date of the notice and the hearing (the threshold increased under the Renters’ Rights Act 2025). You can also rely on the discretionary Grounds 10 and 11 for lower or occasional arrears.
Can I still evict for rent arrears now that Section 21 has been abolished?
Yes. Section 21 no-fault evictions ended in England on 1 May 2026, but rent arrears is a legal ground for possession under Section 8. You serve a Section 8 notice citing the arrears grounds and, if the tenant does not leave, apply to the court for a possession order.
Do the rent arrears eviction rules differ in Scotland and Wales?
Yes. Wales uses occupation contracts under the Renting Homes (Wales) Act 2016, where serious rent arrears of around two months is a mandatory ground with 14 days’ notice via Form RHW20. Scotland uses Private Residential Tenancies, where you serve a Notice to Leave on the rent arrears ground, meet pre-action requirements and apply to the First-tier Tribunal rather than the courts.
Does rent guarantee insurance cover unpaid rent?
Yes. Rent guarantee insurance (also called rent protection) pays your rent if the tenant does not, usually up to an agreed monthly amount, and often covers legal costs for possession. It is a common way for landlords to protect their income against arrears.
For a hassle-free let with your rent protected even if the tenant defaults, see our Rent Assured and Complete Care plans, and let us handle the legal paperwork.
