What happens when a tenant goes into arrears?

At Landlord Action, we understand that rent arrears are one of the most stressful issues a landlord can face. A missed rent payment can disrupt your cash flow and, if unresolved, lead to a lengthy legal process. Whether you own a single property or manage a larger portfolio, it’s vital to know how to respond quickly, lawfully, and with proper documentation.

This article outlines the key steps landlords should take when dealing with a tenant in arrears, helping you protect your investment while staying compliant with the law.

‍

‍1. Communication and record keeping

The first step when rent is missed is to open lines of communication. Check the tenancy agreement for any clauses around grace periods or late payment procedures. In many cases, arrears are due to temporary hardship such as job loss or benefit delays.

Where possible, speak with the tenant directly and explore the option of agreeing to a short-term repayment plan. It’s good practice to follow up all conversations with written confirmation to create a clear audit trail.

Tip: A polite reminder letter is usually a good starting point before escalating matters with formal legal action.

‍

2. Serving a formal notice

If rent continues to be unpaid and informal efforts don’t resolve the issue, the next step is to serve a formal notice.  

1. In England and Wales, a Section 8 notice is typically used when rent arrears reach two months or more

2. You’ll need to state the grounds for possession and give the correct notice period, usually 14 days

3. Make sure the notice is correctly completed and legally compliant as errors could invalidate the process later on

Mistakes such as incorrect dates, missing information, or using the wrong form can invalidate the notice and delay the process significantly.

‍

3. Court possession proceedings

If the tenant fails to respond or settle the arrears, you may need to take legal action by initiating possession proceedings through the county court:  

• Initiate a claim in the county court for a possession order (to regain possession of the property)  
• At the hearing, the court will consider if the arrears are lawfully due, whether proper notice was given and if any repayments have been offered
• If successful, the court grants a possession order. In the case that a tenant  refuses to leave by the date specified, you can then apply for a warrant for eviction, which authorises bailiffs to remove the tenant from the property

‍

4. Legal expenses and rent protection

The process of eviction and recovering unpaid rent can be stressful, time-consuming, and expensive. That’s why it’s important for landlords to protect themselves with the right insurance.  

Our partner, Total Landlord, offers an optional add-on policy that provides rent protection and legal expenses cover. Whether you're dealing with missed rent payments or complex legal disputes, this cover helps you manage the challenges with confidence and support.

‍

Need further support?

Learn more about our services and how we can help or speak to one of our legal specialists at Landlord Action. For more information on what to do if your tenant falls into rent arrears, read our partner Total Landlord’s guide: What to do if your tenant can’t pay the rent and falls into arrears?.

‍