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What Should I Do If My Tenants Don’t Pay?

On September 17, 2018

What Should I Do If My Tenants Don’t Pay?

It’s not always smooth sailing when it comes to tenancy and this is certainly true when it comes to unpaid rent. Although it can be a stressful situation for you as the landlord, it is important to remember that there may be an unfortunate reason behind the lack of payment from your tenant’s side. So, what should be done if this occurs?

1. Communicate 

The first thing to do is to talk to your tenant, calmly and respectfully. Always check your bank statement the day after the rent should have been paid, it is the tenants responsibility to pay on the same day each month. If not, then quick contact with them could solve this problem. They may have failed to pay due to a temporary issue – work with them to agree on an arrangement where you can receive an amount of the rent, knowing the rest will come in the near future.

2. Guarantor

It is important that you are up to date with the contact details of any guarantor your tenant may have. They themselves may be unaware of the unpaid rent and so may need contacting by you. The guarantor is obliged to pay the rent should the tenant be unable to, due to the joint responsibility in the agreement.

3. Consider housing benefits

Depending on the circumstance given for the lack of payment, the tenant may be eligible for government allowances. Situations like job loss or separation can affect payment and so the tenant must contact the local council to explore possible benefits that may help their payments for the future.

4. Ensure you’re insured

For situations exactly like this, Landlord Insurance can be key. Review the terms of your insurance when unpaid rent occurs, before then going on to make a claim. If you have the correct policy, it should cover the legal costs involved in this.

5. Finally, take legal action

You should do this when all the above steps have been taken in a professional manner and still no resolution has occurred.  Serve the correct notice at the correct time in order to remain fair and professional. Before you take legal action, you should seek help from a qualified advisor.

Going forward…

Once problems have been resolved and rent has been paid, assure that it doesn’t occur again by working with the tenant. Possible rent due days could be changed or a payment plan put in place.

More Information

If you have to take legal action, please visit our landlord’s section for a list of documents which may be necessary or get in touch and we’ll be pleased to advise you.

  • By Peter Robinson  0 Comments 
  • Advice, buy to let, guide, landlords, Peter Robinson & Co.