How to handle rent arrears at the end of a tenancy
Image courtesy of Adobe
It can be challenging to navigate a situation where a tenant falls into rent arrears, particularly if there is outstanding rent at the end of the tenancy. We break down the key steps you should take to handle the situation without escalation and recover the money you are owed.
Contact the tenant
If your tenant has fallen behind on rent payments, the first thing you should do is get in touch with them directly by email or phone, followed by a formal letter if the rent is still not paid. It’s important to keep a record of any written communication about rent arrears in case things escalate. In the letter, you should request for the outstanding rent to be paid immediately and reiterate when the payment was due. Remember to be polite even in a difficult situation to try and avoid unnecessary escalation.
Contact the guarantor
If your tenant has a guarantor, which is common for student tenancies, then you can contact them and request that they pay the rent arrears. You should contact the guarantor if you haven’t received outstanding payments within 14 days of the due date. Send them a letter or an email outlining their legal responsibilities to pay the rent if the tenant is unable to.
Keep clear records
It is important that you keep clear records of all documentation relating to the tenancy, including the tenancy agreement and any addenda, records of rent paid and outstanding rent, invoices for maintenance or cleaning work carried out in the property, and records of communications with the tenant. This could serve as evidence if you are ever required to take legal action against your tenants.
You should keep copies of all documents related to the tenancy for at least twelve months after the end of the tenancy and keep rent and bond records for seven years.
Contact your insurer or tenancy deposit scheme
If you have landlord insurance, your scheme may cover rent arrears. Get in touch with your provider to see if you have a claim.
Alternatively, if there is rent outstanding at the end of the tenancy, you may be able to deduct the unpaid rent from your tenant’s deposit. You should contact your chosen tenancy deposit scheme to find out if this possible.
Avoid rent arrears with Concurrent
With Concurrent, our end-to-end property management system, tenants can pay directly and automatically through the platform which will help them to avoid falling into rent arrears. Concurrent will also send automated reminders when rent is due.
Want to find out more? Book a demo today.
Share
Article by
Copywriter & Content Marketing Executive at StuRents
Honor is a Copywriter & Content Marketing Executive, working within the Marketing team to create content for StuRents.
