Approximately 16.2% (11 million people) of the UK rents today.
This is a 5% increase (and double the number) from the year 2000.
Unfortunately, there has also been a rise in unpaid rent.
According to one report, rent arrears rose by 27% between April 2023 and April 2024.
So what can landlords do about tenants not paying rent?
Read on to find out.
Reasons for unpaid rent
Understanding why your tenant is not paying rent is crucial.
They might have valid reasons that mean they will pay late rather than not at all. For example:
- Their employer has paid them late
- Their bank card has been lost or stolen.
Alternatively, perhaps they simply forgot due to being on holiday, work commitments, personal issues, etc.
In these cases, you may choose to be lenient and accept a late payment.
Or they could be purposely being problematic. In these cases, you may be able to establish whether there is a cause to their behaviour.
For example, they might be angry about you not having fixed an issue with the property. Or they may claim you have raised the rent by an unreasonable amount.
Either way, opening a line of communication might help you find a solution or compromise.
Eviction
Non-payment of rent gives landlords grounds to evict tenants, namely a section 8 eviction.
However, this can take time, depending on the specifics of the case and the courts’ capacity. This time frame could vary anywhere from 2 weeks to 2 months.
How to collect unpaid rent after a tenant moves out
If tenants have moved out with outstanding rent, the most common solution is to keep their deposit.
Their deposit should be held in a deposit scheme. You simply need to apply to the relevant scheme with the necassary evidence to gain access to it.
Suing a tenant for unpaid rent
You can sue a tenant for unpaid rent. You’ll need to show that they’re in violation of their tenancy contract.
The case will be brought before either the county or small claims court. It depends on the amount that’s owed.
A county court order (CCJ) can be issued if you’re successful. This forces the tenant to pay you back within a set time frame or according to a payment plan.
What to do before I suing for unpaid rent
First, you should try to get this situation out of court, if possible.
If your tenant made a deposit at the start, then you could take the unpaid rent out of this. This only applies if it covers the full amount.
If your tenant signed up with a guarantor, you could also contact them. They could be responsible for paying off the tenant’s owed money.
You may also want to get a mediator in. This professional can act as an intermediary. The case could be settled before it ever gets to court.
Only once you’ve exhausted all your options should you speak to a solicitor about suing them.
Steps for suing a tenant for unpaid rent
Send a letter to your tenant outlining the claim
You should put your claim in writing to your tenant. This is an important step before you file a claim with the court.
It explains your position and the amount you’re suing them for.
File a claim with the court
You should file a claim with the court next. Your solicitor can help you complete the paperwork.
They can also do it all for you. This guarantees that you give yourself the best possible chance of success.
Court proceedings
You’ll be given a date for attending the court and having a hearing about the unpaid rent.
Make sure to prepare for this by gathering all the evidence you need.
You should also liaise with your solicitor or lawyer to ensure your argument is crystal clear.
Then, attend on the day, and make your case. If you’re successful, it’ll result in a court order for your tenant to repay the money.
This is enforceable by law, so bailiffs can get involved if tenants continue to delay.
Time limit on suing for unpaid rent
You can sue a tenant for up to 6 years after the rent is due.
It doesn’t matter when you discovered that the rent was unpaid. The definitive date is only when it was owed.
Once 6 years have passed, you may be unable to make a claim for this money anymore.
