What Can Landlords Do When The Tenant’s Rent is Late?

Dealing with a tenant not paying rent is one of the most common challenges UK landlords face. Whether it's a payment that's a few days late or a tenant falling into serious rent arrears, knowing your rights and the proper legal procedure is essential.

With the cost of living crisis continuing to impact tenants and the upcoming Renters' Rights Bill set to change eviction procedures, it's more important than ever for landlords to understand how to handle late rent payments correctly. 

This guide covers everything you need to know about tenant arrears, your rights as a landlord under UK law, and the practical steps to take when rent doesn't arrive on time.

Understanding Late Rent vs Rent Arrears in the UK

Before taking any action, it's important to understand the distinction between late rent payments and rent arrears.

Late rent payment occurs when a tenant pays after the due date specified in the tenancy agreement. This might be a few days or a week late, but the tenant intends to pay.

Tenant arrears (or rent arrears) is when rent remains unpaid and the debt accumulates. This becomes a more serious issue, particularly when arrears reach two months or more.

How you respond to these situations will differ significantly. A tenant who occasionally pays a few days late requires a different approach to one who has stopped paying rent altogether.

When is Rent Considered Late in the UK?

A tenant being a day or two late with their rent payment is not an uncommon thing. And in the grand scheme of things, as long as they pay, whilst it can be stressful, it’s not really a problem.

However, a day or two is different from a week or two or a month or two. So, how late is late and when should you, as the landlord, start getting worried?

Technically, rent is late the day after it is due. If rent is due on the 1st of the month and hasn't been paid by the 2nd, it's late.

However, in practice, most UK landlords follow this timeline:

• 1-3 days late: Wait and monitor. Banking delays can happen.
• 3-5 days late: Send a friendly rent reminder. The tenant may have simply forgotten.
• 7-14 days late: Send a formal rent arrears notice.
• 14+ days late: You can charge late fees (under the Tenant Fees Act 2019).
• 2 months late: You can serve a Section 8 notice on mandatory grounds.

It's worth noting that whilst rent is technically late after the due date, the Tenant Fees Act 2019 prevents landlords from charging late payment fees until rent has been outstanding for at least 14 days. Even then, any interest charged is capped at 3% above the Bank of England's base rate.

Using a system like Landlord Studio, you can set up automated rent reminders to go out a few days before rent is due and again if payment is late, helping prevent late payments before they become a problem.

Related: Free Rent Statement Template For Landlords (UK) 

Acceptable Reasons for Late Rent Payments

Understanding why tenants pay late can help you determine the best course of action. Some reasons warrant flexibility, whilst others signal deeper problems. Common acceptable reasons for late rent payments include:

• Financial difficulties: job loss, reduced income, benefit delays.
• Administrative issues: banking errors, failed standing orders.
• Personal circumstances: illness, bereavement, family emergencies.
• Property issues: unresolved maintenance affecting habitability.

When a tenant has a genuine, short-term reason for late payment and communicates with you proactively, it's often worth working together to find a solution. This approach can maintain a good tenant relationship and avoid the costly and time-consuming eviction process.

Your Rights as a UK Landlord When Tenants Don't Pay Rent

Several pieces of UK legislation protect your rights as a landlord whilst ensuring tenants are treated fairly:

The Housing Act 1988 provides landlords with the right to terminate a tenancy if the tenant breaches the agreement by not paying rent. This includes the ability to serve Section 8 notices on specific grounds.

The Landlord and Tenant Act 1985 covers the process for addressing rent arrears and other tenancy breaches, including the recovery of unpaid rent through court proceedings or deductions from the tenancy deposit.

The Protection from Eviction Act 1977 protects tenants from being evicted without proper notice and a court order, but also gives landlords the right to evict using the correct legal process.

The Tenant Fees Act 2019 limits what fees you can charge for late rent. You cannot charge late fees until rent is at least 14 days overdue, and any interest must not exceed 3% above the Bank of England base rate.

What Landlords Need to Remember: Tenant Rights

Even when a tenant isn't paying rent, their rights remain protected. Here's what you absolutely cannot do:

• Evict the tenant without a court order
• Change the locks or restrict access to the property
• Cut off utilities or services
• Remove the tenant's belongings
• Harass or threaten the tenant

Until you have either legally evicted the tenant through the courts or they have voluntarily surrendered the tenancy, the property remains their home, and they retain their statutory rights. 

Any attempt to circumvent this process can result in you being liable for illegal eviction or harassment, which carries serious penalties.

What to Do If Your Tenant Doesn't Pay Rent: Step-by-Step Action Plan

When rent doesn't arrive, time is of the essence. Here's exactly what to do at each stage:

Days 1-3: Initial Contact

As soon as you notice rent hasn't been paid, check your bank account to confirm. Then reach out to your tenant with a friendly reminder. A quick phone call, text message, or email is appropriate at this stage.

The issue could be as simple as a forgotten payment or a banking error. Keep the tone light and polite: "Hi [Tenant], I noticed this month's rent hasn't come through yet. Just wanted to check everything's okay?"

Document this initial contact in case you need evidence later. 

Days 3-7: Follow-Up Reminder

If rent still hasn't been paid and you haven't heard from your tenant, send a more formal reminder. This can be via email or letter, and should include:

• The amount of rent owed
• The original due date
• A request for immediate payment
• An invitation to discuss if they're having difficulties

This is also a good time to ask if there's anything you can do to help resolve the issue. Perhaps they need information about Universal Credit or other support services.

Days 7-14: Formal Rent Arrears Notice

If the rent remains unpaid after a week, send a formal rent arrears notice. This should be in writing (email is acceptable, but a posted letter is advisable) and include:

• Confirmation of the outstanding amount
• The dates the payments were due
• A clear deadline for payment (typically 7-14 days)
• Reference to the tenancy agreement terms
• A warning that failure to pay may result in legal action

You can automate these reminders using Landlord Studio's rent reminder feature, which sends professional notices at scheduled intervals. This saves you time and ensures you're always following best practices.

Day 14: Contact Guarantor

If your tenant has a guarantor named in the tenancy agreement or a separate Deed of Guarantee, contact them now. Explain the situation and request that they fulfil their obligation to pay the rent arrears.

Day 21: Final Warning

If rent remains unpaid after three weeks and your tenant hasn't engaged with you or made arrangements to pay, send a final warning letter. This should clearly state:

• The total amount now owed
• That you will begin legal proceedings if payment is not received
• Reference to Section 8 of the Housing Act 1988
• A final deadline for payment (typically 7 days)

Two Months: Section 8 Notice

Once your tenant is two months (or eight weeks for weekly tenancies) in arrears, you can serve a Section 8 notice citing Ground 8. This is covered in more detail below.

Throughout this process, keep detailed records of all communications, payment attempts, and notices sent. Landlord Studio's document storage feature keeps everything organised and accessible, which is crucial if you end up in court.

Offering Late Rent Solutions Before Legal Action

Before resorting to eviction proceedings, consider whether there's a way to resolve the situation that benefits both parties. Eviction is expensive, time-consuming, and means you'll have a void period whilst finding a new tenant.

Payment Plans

If your tenant is experiencing temporary financial difficulties but you believe they'll recover, consider offering a payment plan. For example:

• If they miss one month's rent, they could pay their normal rent plus an additional amount each month until the arrears are cleared
• Break the arrears into manageable weekly instalments on top of regular rent
• Accept a lump sum of what they can afford now, with the balance paid over an agreed period

Any payment plan must be documented in writing, signed by both parties, and realistic. Don't agree to terms the tenant can't afford, as this will only lead to further problems.

Universal Credit Direct Payments

If your tenant receives Universal Credit and is at least two months behind on rent, either you or the tenant can request an Alternative Payment Arrangement (APA). This means the housing element of their Universal Credit is paid directly to you rather than to the tenant.

You can apply online through GOV.UK. Whilst this won't cover arrears immediately, it ensures future rent is paid and prevents the debt from growing.

Discretionary Housing Payments (DHPs)

Direct your tenant towards Discretionary Housing Payments if they're receiving Housing Benefit or Universal Credit but it doesn't cover their full rent. These are extra payments from the local council to help with housing costs.

Mediation Services

Consider using a professional mediation service before going to court. Services like Property Redress offer tenancy mediation for around £200 plus VAT. Mediators can help you and your tenant reach an agreement that works for both parties, often resolving issues within 10-15 working days.

Voluntary Surrender

If your tenant's circumstances have changed permanently and they can no longer afford the rent, it may be worth suggesting they voluntarily surrender the tenancy. This avoids court costs for you and an eviction record for them. You can use the time to find a new tenant whilst they search for more affordable accommodation.

The Legal Eviction Process in the UK

If solutions fail and your tenant continues not paying rent, you may need to pursue legal eviction. There are two main routes:

Section 8 Notice

A Section 8 notice is used when the tenant has breached the tenancy agreement. For rent arrears, you can use:

Ground 8 (Mandatory): If at least two months' rent is unpaid (or eight weeks for weekly tenancies) both when you serve the notice and at the court hearing, the court must grant possession. This is the strongest ground for eviction due to non-payment.

Ground 10 (Discretionary): Some rent is in arrears both when you serve the notice and at the hearing, but it's less than two months. The court has discretion whether to grant possession.

Ground 11 (Discretionary): The tenant has persistently paid rent late, even if they're not currently in arrears. This can be used for tenants who are always a few days or weeks late.

To serve a Section 8 notice, you must use the prescribed form and specify which ground(s) you're relying on. The notice period varies:

• Two weeks' notice for Grounds 8, 10, and 11
• Two months' notice for other grounds

Crucially, if your tenant pays the arrears before the court hearing (for Grounds 8 and 10), this can invalidate your notice.

Section 21 Notice

A Section 21 notice is a "no-fault" eviction that can be served after the fixed term has ended. It doesn't require you to give a reason for evicting the tenant. You must give at least two months' notice.

However, be aware that the Renters' Rights Bill proposes to abolish Section 21 notices entirely. Once this legislation passes, landlords will only be able to evict tenants on specific grounds, making it even more important to properly document rent arrears and follow correct procedures for Section 8 notices.

If you serve a Section 21, you cannot claim rent arrears through the same court process. You would need to pursue the debt separately.

Court Proceedings

If your tenant doesn't leave by the date specified in your notice, you must apply to the court for a possession order. There are two types:

Standard possession order: Required if you're claiming rent arrears. This usually involves a court hearing and costs between £325-£355.

Accelerated possession order: Can be used if you're not claiming arrears and served a valid Section 21 notice. This is often quicker as it doesn't require a hearing.

The court can make several types of orders:

• Outright possession: The tenant must leave by a specified date
• Suspended possession: The tenant can stay if they meet conditions (usually paying rent plus arrears)
• Monetary judgment: The tenant must pay rent arrears plus court costs

Even with a court order, if the tenant still doesn't leave, you need to apply for a warrant of possession for bailiffs to enforce the eviction. 

Currently, the average time from starting eviction proceedings to regaining possession is around 15 months, so having rent guarantee insurance is increasingly important.

What Does Late Rent Mean for Landlords?

Understanding the practical and financial implications helps you prepare:

It can be a slow process. From the first missed payment to actually regaining possession of your property could take 6-18 months if you go through full eviction proceedings. You need patience and a solid financial buffer.

You may lose money. By the time you've pursued all rent owed, you'll likely have incurred court costs, legal fees, potentially lost more months of rent, and costs for finding a new tenant. Sometimes you have to accept you won't recover everything.

Tenant rights remain protected. You must treat a non-paying tenant exactly as you would a paying tenant in terms of their rights, repairs, and access to the property. Any harassment or attempt to force them out illegally can result in serious penalties for you.

Plan your finances accordingly. Successful landlords maintain an emergency fund covering at least six months of property costs, including mortgage payments, insurance, and maintenance. This buffer is essential for weathering periods of lost rental income.

Insurance can help. Rent guarantee insurance or landlord insurance policies that cover missed payments can provide crucial financial protection. Many policies cover legal costs for eviction as well.

Managing Rent Arrears with Landlord Studio

Prevention and early intervention are your best tools for managing late rent payments. Landlord Studio offers several features that help UK landlords stay on top of rent collection and documentation:

• Automated rent tracking & reminders – Prevents missed payments.
• Arrears notice templates – Professional and legally compliant.
• Document storage – Securely record notices, agreements, and messages.
• Payment history reports – Identify late payment patterns with clear reports .
• Flexible rent schedules – Adjust for payment plans and track accurately.

By automating the routine aspects of rent collection, you can focus on communicating with tenants and resolving issues before they escalate into serious arrears.

Prevention: Reducing the Risk of Late Rent Payments

The best strategy for dealing with late rent is preventing it in the first place. Here are proven methods:

1. Thorough tenant referencing: Conduct comprehensive checks including credit history, previous landlord references, and employment verification. Look for any County Court Judgments (CCJs) or history of rent arrears.
2. Request a guarantor: For tenants with limited credit history or income uncertainty, require a guarantor who can cover rent if the tenant defaults.
3. Set up standing orders: Encourage tenants to set up a standing order for rent payments. This removes the risk of forgetting and creates a clear payment trail.
4. Send reminder emails: Even with standing orders, automated reminders a few days before rent is due help keep rent top of mind.
5. Start with shorter tenancies: If you have concerns about a tenant's ability to pay, consider starting with a six-month agreement before committing to longer terms.
6. Consider rent guarantee insurance: This covers lost rent if tenants default, typically up to 12 months of rental income, and often includes legal expense cover.
7. Maintain good communication: Build a positive relationship with your tenants from the start. Tenants who feel comfortable approaching you about problems are more likely to discuss payment difficulties early, when solutions are easier to find.
8. Use property management software: Systems like Landlord Studio automate reminders, tracking, and documentation, ensuring nothing slips through the cracks.

Final Thoughts: Understanding Rent Arrears Landlord Rights

Late rent payments are never pleasant, but they don’t have to spiral into a crisis. When you act quickly, communicate clearly, and follow the proper legal process, you stay in control and protect both your property and your peace of mind.

That’s where Landlord Studio really shines. Automate your rent tracking, schedule routine reminders before payments are due, store every notice and message securely, and keeps your paperwork perfectly organised. You’ll always know exactly what’s been paid, what’s outstanding, and what to do next.

By using smart tools to stay ahead of late rent and arrears, you can focus less on chasing payments and more on running a successful rental business.

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