Collecting Rent Arrears

When a client agrees to rent a property there is a lot of paperwork involved which should be read carefully before signing. One of the most important pieces of information to be remembered is the agreement of rent, how much to pay when it needs to be paid, and finally money details etc. This is then a contract that if broken consequences have to be taken. It is a very stressful situation for all the parties involved including the landlord as they have bills to pay and will have to begin court proceedings if the situation doesn't change.


The process


The process of collecting rent arrears is far from easy. First of all, each person needs to get together to discuss what action will be taken. This could be a repayment plan to catch up on the money owed, more serious cases will then involve the court or an eviction. You will likely receive a letter detailing the offense. No one wants to get to the final stages so paying back money is the best option and needs to be planned carefully with the landlord. This is why it's always crucial to read all the small print in the contract so both parties are protected.

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The limits


There are certain limits in regards to payments that can lead to bankruptcy for the renter. Normally this is in the range of over £5000 in rent arrears. This is then known as a statutory demand for the money. The tenant can then contact their local citizen advice for information on finances, or if there is any help they can avail of to pay back the money owed in a hurry.


The eviction process


If the repayment plan is not working out or you're dealing with a difficult tenant then, unfortunately, issuing an eviction notice is the only way forward. This cannot be done immediately according to the law you need to submit in writing the notice to leave including the reasons in this case rent arrears. Then there is a court order leaving the tenant knowing the situation and how long they have to vacate the premises. Most tenants decide to stay until the last date, this gives them time to finish packing all their belongings. Even though its stressful for everyone it is the law to keep up with payments when agreeing to rent an apartment for a certain amount of time.