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Rent arrears need quick, calm handling. The longer the arrears are left, the harder they are to recover and the more likely the tenancy will break down.
Start by working out exactly what is owed, then speak to the tenant and decide whether the problem can realistically be fixed. Court action should usually be the last step, but landlords should still keep proper records from the start in case possession or a money claim becomes necessary.
Prepare a clear statement of account showing:
Keep the rent account up to date. If the matter later goes to court, the judge will expect a clear schedule showing how the arrears have built up.
Before taking possession action, check that your file is in order. This should include the tenancy agreement or written statement, the gas safety record, electrical safety report, energy performance certificate, deposit protection certificate, deposit prescribed information, inspection notes, letters, emails and text messages about the arrears.
These documents are not all possession gateways, but they are still important legal duties and evidence. If a deposit was taken, check that it was protected and that the prescribed information was served correctly. Deposit problems can lead to a tenant claim for between one and three times the deposit and may complicate possession proceedings.
Contact the tenant as soon as a payment is missed. The cause matters. A short-term problem, such as a delayed wage payment or an unexpected bill, may be solved with a short repayment plan. A longer-term income problem may need a different approach.
Ask the tenant why the rent has not been paid and when they expect to make payment. Keep the conversation professional. Make a note of the date, who you spoke to and what was agreed. If the tenant will not engage, record the attempts you made.
Some tenants may be able to claim Universal Credit, housing benefit or a discretionary housing payment from the council. Ask the tenant whether they have made a claim and whether there has been any delay. A discretionary housing payment can sometimes help clear or reduce arrears where the tenant receives benefits.
This matters for possession as well as recovery. For Ground 8, arrears caused by the tenant not receiving Universal Credit or housing benefit are not counted when deciding whether the mandatory rent arrears ground is made out.
If the tenant can afford to pay the current rent plus something towards the arrears, put a repayment plan in writing. It should say:
Both landlord and tenant should sign and date the plan. Keep a copy with the rent account. If the tenant later breaks the arrangement, the plan helps show the court that you tried to resolve the arrears before asking for possession.
Do not agree to a plan that the tenant plainly cannot afford. It is better to know that the tenancy is not sustainable than to set up an arrangement that fails within a month. In some cases, writing off part of the arrears, agreeing a move-out date, or pursuing the debt separately may be more commercial than running a defended possession claim.
Possession for rent arrears is through section 8. A landlord must serve the correct notice (Form 3A) and rely on one or more statutory grounds for possession. For ordinary rent arrears cases, the main grounds are Grounds 8, 10 and 11.
Ground 8 is mandatory if the legal test is met. For monthly rent, the tenant must owe at least three months' rent. For weekly or fortnightly rent, the tenant must owe at least 13 weeks' rent. The arrears must be at or above that level both when the notice is served and on the date of the court hearing.
The notice period for Ground 8 is four weeks before the landlord can apply to the court.
If the tenant pays enough to bring the arrears below the Ground 8 threshold before the hearing, the court cannot make a mandatory possession order on Ground 8. Arrears caused by unpaid Universal Credit or housing benefit also do not count for Ground 8.
If the tenant is claiming Universal Credit, any delayed payment is not counted towards arrears.
Ground 10 can be used where the tenant owes rent, even if the arrears are below the Ground 8 threshold. The notice period is four weeks.
Ground 10 is discretionary. The court will only make a possession order if it is reasonable to do so.
Ground 11 deals with tenants who repeatedly pay rent late. It can still be relevant where the tenant reduces or clears the arrears before the hearing, because the issue is the persistent delay in paying rent. The notice period is four weeks.
Ground 11 is also discretionary. The landlord should have evidence of the payment history and the effect of the repeated late payments.
The difference matters. If Ground 8 is proved, the court must make a possession order unless another legal issue prevents it from doing so. Grounds 10 and 11 are different. The court considers whether it is reasonable to evict the tenant, taking into account the arrears, payment history, conduct, hardship, and any repayment proposals.
Landlords often rely on Grounds 8, 10 and 11 together. Ground 8 deals with serious arrears. Grounds 10 and 11 help where the tenant pays down the arrears before the hearing or has a long pattern of paying late. If relying on more than one ground, use the correct notice period for every ground included.
The notice is linked on our website in the Other Forms part of the website, or you can download it from the .gov site here.
You can use our possession wizard to help determine the most appropriate grounds to use, given the individual circumstances.
Full guidance on completing the section 8 notice Form 3A is available here.
Possession proceedings take time and money. Before issuing a claim, consider:
If the tenant has no realistic way to repay, a money judgment may have limited value. That does not mean possession should be delayed indefinitely, but it should be a commercial decision based on the evidence.
A tenant threatened with possession may contact the council for help with homelessness. In reality, councils often wait for the possession process to progress before arranging alternative accommodation. Some tenants are told to remain in the property until a court order or bailiff appointment.
If a tenant leaves before they have to, the council may decide that they made themselves intentionally homeless. That is one reason tenants sometimes stay until the end of the legal process, even where everyone accepts the tenancy has broken down.
Furthermore, not paying rent is typically considered to make oneself intentionally homeless, so no help is available.
Good records make rent arrears cases much easier to manage. Keep the rent account, bank statements, benefit information, correspondence, repayment plans, inspection notes and notices together. Avoid informal side agreements that are not written down.
If possession becomes necessary, use the current section 8 notice and check the ground, threshold and notice period before serving it. A rent arrears claim can fail because the notice is wrong, the arrears calculation is unclear, or the evidence does not match the ground relied on.