What to Do If Your Tenant Stops Paying Rent: A Step-by-Step Guide for UK Landlords

What to do if your tenant stops paying rent: A step-by-step guide for UK Landlords (2025)

Rent arrears are one of the most challenging issues landlords face. With the Renters’ Rights Bill set to overhaul eviction processes in 2025, it’s more important than ever to act swiftly and legally when a tenant stops paying rent. This guide outlines the steps you should take to protect your investment and maintain compliance with the latest regulations.

Step 1: Act immediately and communicate

As soon as a rent payment is missed, reach out to your tenant. A simple phone call or email can often resolve the issue quickly. There may be a genuine reason for the delay, such as financial hardship or a banking error. Document all communications, as these records can be crucial if legal action becomes necessary.

Step 2: Contact the guarantor

If your tenant has a guarantor, and the rent remains unpaid after 14 days, you can contact the guarantor to request payment of the arrears. Ensure that all correspondence is documented and sent via a method that provides proof of delivery.

Step 3: Review your insurance policy

Check if your landlord insurance includes rent guarantee cover. Policies like LFL’s Rent & Legal Protection Insurance can cover unpaid rent and legal costs associated with eviction, provided the tenant passed a full reference check. This safety net can be invaluable in mitigating financial losses.

Step 4: Issue formal notices

If the rent remains unpaid after 14 days, send a formal letter to the tenant outlining the arrears and requesting immediate payment. If there’s still no response after 21 days, send a final letter stating your intention to take legal action if the debt is not cleared. These steps demonstrate that you’ve made reasonable efforts to resolve the issue amicably.

Step 5: Understand the legal framework

Under the current law, landlords can serve a Section 8 notice if a tenant is at least two months in arrears. However, the Renters’ Rights Bill, expected to become law in 2025, proposes significant changes:

Abolition of Section 21 ‘no-fault’ evictions

Increase in rent arrears threshold for eviction from two to three months

Extension of notice periods for eviction from two to four weeks

These changes mean that landlords will need to rely more heavily on Section 8 notices and ensure strict compliance with the new regulations.

Step 6: Seek professional legal assistance

Navigating the complexities of eviction laws can be daunting. LegalforLandlords offers fixed-fee services to assist landlords with rent arrears and tenant evictions. Our team of specialists can guide you through the process, ensuring that all actions are legally compliant and efficiently executed.

Step 7: Protect your investment

To safeguard against future rent arrears, consider implementing the following measures:

Comprehensive Tenant Referencing: Thorough background checks can help identify reliable tenants

Rent Protection Insurance: Policies like those offered by LegalforLandlords provide financial protection against unpaid rent.

Regular Communication: Maintaining open lines of communication with tenants can pre-empt potential issues.

Final thoughts

Dealing with rent arrears requires prompt action and a clear understanding of the legal landscape. With the upcoming changes in 2025, staying informed and prepared is more critical than ever. LFL is here to support you every step of the way, offering expert advice and services tailored to your needs.