Tenant Not Paying Rent: What to Do Before Eviction
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Before starting eviction: contact tenant immediately to understand why, send formal written notice, agree a payment plan if appropriate, check if they're claiming benefits, and document everything. Eviction should be a last resort - it's expensive and time-consuming.
When rent doesn't arrive, your first instinct might be to start eviction proceedings. But eviction costs £1,500-3,000+ and takes 4-6 months. Often, there's a quicker, cheaper solution. Here's what to do first.
First steps when rent is late
Contact your tenant within 3 days of a missed payment. The sooner you act, the more options you have.
Many late payments aren't intentional. Bank errors, forgotten standing orders, illness, or a simple oversight can all cause delays. A quick phone call often resolves the issue immediately.
Within 3 days of missed payment:
- Call or text the tenant directly
- Send a polite email noting the missed payment
- Ask if there's a problem you should know about
- Request confirmation of when payment will arrive
Document every contact attempt. Date, time, method, and what was said. This record becomes essential if you later need to prove you tried to resolve things amicably.
How to contact your tenant
Use multiple contact methods: phone, text, email, and letter. Keep records of everything.
| Method | Best For | Keep Record |
|---|---|---|
| Phone call | Immediate response, understanding situation | Note date, time, summary |
| Text message | Quick check-in, less confrontational | Screenshot conversation |
| Formal record, detailed information | Automatic record | |
| Letter | Formal warnings, legal weight | Keep copy, use recorded delivery |
If a tenant is avoiding contact, don't visit the property unannounced. You still need to provide proper notice for visits. A letter sent by recorded delivery provides proof of delivery.
Understanding why they're not paying
The reason matters. Job loss, illness, and benefit delays need different approaches than a tenant who simply won't pay.
Common reasons for non-payment:
- Job loss - May qualify for Universal Credit, likely temporary
- Illness or injury - May need time to access sick pay or benefits
- Relationship breakdown - Partner may have left, income halved
- Benefit delays - UC claims take 5 weeks minimum
- Dispute with you - May be withholding rent over repairs (this is illegal, but it happens)
- Financial mismanagement - Spent rent money elsewhere
- Won't pay - Has decided not to, has no intention to
The first four situations often respond well to payment plans and patience. The last three typically require firmer action.
Creating a payment plan
A written payment plan protects both parties. It must cover ongoing rent PLUS a contribution toward arrears.
Essential elements of a payment plan:
- Total arrears amount as of a specific date
- Ongoing rent amount and due date
- Additional weekly/monthly arrears payment
- What happens if payments are missed
- Signatures from both landlord and tenant
- Date the agreement was made
Example payment plan structure:
Rent: £1,000/month. Arrears: £2,000. Payment plan: £1,000 rent + £200 arrears = £1,200/month until cleared (10 months).
Be realistic. Setting unaffordable payments guarantees failure. Check the tenant's income and outgoings if possible.
Important: Get it in writing. A verbal agreement has little legal weight. Both parties should sign and keep copies.
Checking benefit eligibility and UC direct payments
If your tenant claims Universal Credit, you can request "Alternative Payment Arrangements" to have rent paid directly to you.
Universal Credit housing element can be paid directly to landlords through the UC Landlord Portal.
You can request direct payments if:
- Tenant has 2+ months' rent arrears
- Tenant is unlikely to manage their own finances
- Tenant has a history of arrears
- Tenant requests it themselves
To apply, you'll need the tenant's National Insurance number and your landlord details. The DWP will decide within 10 working days.
Benefits of direct payments:
- Rent comes straight to you, not via tenant
- Reduces missed payments due to money management issues
- Can also request arrears deductions (up to 20% extra)
When to send a formal warning letter
If informal contact fails after 14 days, send a formal letter stating arrears and warning of legal action.
A formal warning letter should include:
- Date and property address
- Total arrears owed, with breakdown by month
- Previous contact attempts and their outcomes
- Request for payment within 14 days
- Clear statement that legal action will follow if not resolved
- Offer of a payment plan (if willing)
Send by recorded delivery and keep a copy. This letter isn't legally required, but it demonstrates you tried to resolve things before court - judges notice this.
When to start eviction proceedings
Consider eviction when: communication fails, payment plans are broken, and there's no realistic prospect of the tenant paying.
Eviction should be a last resort because:
- It takes 4-6 months minimum
- It costs £1,500-3,000+ in court fees and legal costs
- You may never recover the arrears
- The property may be damaged during the process
Signs it's time to start eviction:
- Tenant ignores all contact attempts
- Multiple broken payment promises
- Tenant refuses to engage with solutions
- Arrears are growing, not shrinking
- Tenant has said they won't pay
If you decide to proceed, use Section 8 and cite Grounds 8, 10, and 11 together. Read our guide on evicting for rent arrears for the full process.
Cost of eviction vs alternatives
Eviction typically costs £1,500-3,000+ and takes 4-6 months. Alternatives like payment plans or mediation are often cheaper and faster.
| Option | Cost | Time |
|---|---|---|
| Payment plan | Free | Ongoing |
| UC direct payments | Free | 2-3 weeks to set up |
| Mediation | £100-500 | 2-4 weeks |
| Cash for keys | 1-2 months' rent | 2-4 weeks |
| Section 8 eviction | £1,500-3,000+ | 4-6 months |
| Eviction with bailiff | £2,500-4,000+ | 5-8 months |
"Cash for keys" means offering the tenant money to leave voluntarily. It sounds counterintuitive when they owe you money, but it's often cheaper than eviction. Offer 1-2 months' rent to leave within 2 weeks, with the property in good condition. Get the agreement in writing.
Frequently asked questions
How many days late before I can act?
You can contact your tenant immediately - there's no waiting period for communication. For formal eviction, Ground 8 requires 2 months' arrears, while Ground 10 works for any amount. But you should always try informal resolution first. Courts look favourably on landlords who've made genuine attempts to resolve issues.
Can I charge late payment fees?
Only if stated in your tenancy agreement. Under the Tenant Fees Act 2019, you can charge interest at 3% above Bank of England base rate on rent more than 14 days overdue. You cannot charge flat fees, admin charges, or penalty fees. Any clause in your agreement allowing higher charges is unenforceable.
Should I accept partial payments?
Usually yes - some money is better than none, and it shows the tenant is trying. However, document clearly that accepting partial payment doesn't waive your right to the full amount or affect your ability to pursue arrears. Be aware that if you're planning to use Ground 8 (mandatory eviction), the tenant needs to owe 2+ months at both the notice date AND the hearing. Accepting payments that bring them under 2 months means Ground 8 won't work.
What about guarantors?
If you have a guarantor agreement, contact them in writing when arrears reach a significant amount (e.g., one month). State the arrears figure, attach a copy of the guarantee, and request payment. Most guarantors pay quickly to protect their credit. You can pursue them through small claims court for amounts up to £10,000. The guarantor's obligation is separate from the tenant's - you can pursue both simultaneously.
Managing this yourself?
LandlordOS helps UK landlords stay compliant and organised:
- Automatic compliance reminders for Gas Safety, EICR, EPC
- Document storage with AI-powered certificate reading
- Tenancy tracking and rent management
LandlordOS tip
Set up rent reminders 3 days before the due date and alerts for the day after. The faster you act on a missed payment, the more options you have. LandlordOS tracks all tenant payments automatically and flags arrears immediately.