A landlord’s advice to dealing with rent arrears
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What does rent in arrears mean?
This phrase denotes an overdue rent payment. This may be for a missed payment for the entire month. Rent payment frequency and amount are determined by the tenancy agreement outlined at the start of the tenancy, and being in arrears indicates a breach of that agreement.
One of the most frequent worries that any landlord has is making sure that the tenants pay their rent.
We have put together this fast guide to dealing with arrears to assist you in staying on top of rent payments and ensuring you do not end up with any rent missing.
Our lease extension experts can guide you through with efficiency.
Tenants must keep a record of when rent payments are due and when they have been paid.
According to the Landlord and Tenant Act of 1985, the landlord must supply a rent book or other comparable document for use to the premises “when a tenant has the right to occupy premises as a residence in consideration of a rent due weekly.” But for tenants who make monthly rent payments, we advise you to follow a similar procedure.
If it becomes necessary to initiate possession procedures, you must give your landlord and the court an account of rent.
Contact your tenant
If your tenant doesn’t pay the rent when it’s due, we suggest getting in touch with them the day after it’s due to remind them of the payment’s deadline and request that it be made right away
If tenants don’t return your calls, texts, or emails and/or the rent is still owed, get in touch with them once again
Your letter should
- Verify the amount owing and request that they pay it right away, or get in touch with you if they are unable to do so and need more time or want to work out a repayment schedule
- Make sure that all upcoming payments are made on schedule and in full.
- Describe the possible consequences of unpaid debts continuing to accumulate and/or not being paid.
Contact the guarantor
If your tenant has a guarantor, you should get in touch with them to let them know that a rent payment has been missed and ask them to make a payment. This depends on what is specified in the leasing agreement.
Once more, explain to them what will probably occur if arrears are not paid and/or are allowed to accumulate.
In many circumstances, the guarantor will answer if the tenant doesn’t.
We advise getting legal counsel about your rights and what steps you can take to regain control of your property if rent isn’t paid for more than two months.
Notwithstanding the complexity of the regulations governing landlord-tenant relationships, you must be informed of your rights and uphold your obligations.
Landlord insurance for rent arrears
To protect themselves from tenant debt, many landlords decide to purchase a specific coverage designed for landlords. In addition to paying the legal costs incurred in recouping delinquent rent.
Although landlord insurance cannot make your tenants pay their rent on time, it can provide you some comfort in knowing that the costs of going to court to recover unpaid rent are covered.
For further questions related to lease extensions and property, contact one of our experienced chartered surveyors at Leasehold Valuations.