Tenants Not Paying Rent in South London? Here’s What to Do

You can’t just get rid of a tenant who is not paying rent in the UK, but you can take action. Before your mind races, find out what your next step should be – and remember that a calm approach can get results.

More tenants have fallen into rent arrears over recent years, according to This Is Money. In London, rent now consumes an average 38.9% of tenants’ incomes, a financial pressure which can lead to missed payments. So as a landlord in Southwark, Bermondsey or Lewisham, you’re not alone in facing this challenging situation – it’s a major cost associated with being a landlord.

Read on to find out what you can do if your tenants are not paying rent on your South London property.

What to do if a tenant is not paying rent

Landlords can take legal action if tenants are not pay the rent, however, you must follow the process carefully.

1 Keep your conduct legal

Landlords have rights if the tenant isn’t paying rent, but your tenant’s rights still stand so you must follow the law on unpaid rent and evictions. Don’t take risks. Illegal action could derail eviction proceedings later on, or even attract criminal charges.

Do:

• Follow every letter of the law
• Stick to mandated timelines
• Keep records of correspondence
• Follow up verbal communication in writing

Don’t:

• Let frustration lead to aggressive behaviour
• Threaten your tenants
• Change the locks
• Disconnect the utilities
• Remove the tenants’ belongings

2 Understand why the renter is not paying rent

Speak calmly to the tenants as there may be a legitimate reason for not paying the rent on time. If there’s a genuine cause behind it, you could risk losing good tenants.

3 Contact tenant about missed payment

Contact your tenants by phone, text or email. If the tenants are unaware or they have a temporary problem, e.g. a payroll glitch or banking error, they might make the missed payment immediately. If your tenant is receiving housing benefits but not paying, prompt them to find out if they qualify for financial support.

4 Formally contact your tenant about arrears

If you have a tenant not paying rent and not responding, send a formal letter asking for payment according to the rental contract. Also notify the guarantor about the unpaid rent, if there is one. You can use an example letter for ideas, but essentially, set out the facts:

• Rental arrears are outstanding
• Future rent payments must be promptly paid
• How long tenants cannot pay rent before eviction (2 months)

5 Review your landlord insurance policy

Some landlord insurance policies cover lost income from rent arrears. Consult your policy documents or ask your insurer how to claim, and what evidence you will need. You can also contact your deposit protection scheme about claiming the amount at the end of the tenancy.

6 Follow up with a second letter

If you have a tenant not paying rent and not responding, and it’s now 14 days since the rent was due, send a second letter. Reiterate the problem and request the missing amount.

7 Send a final warning letter for arrears

Send a third and final letter asking for the outstanding rent if it’s not been paid after 21 days. Warn your tenant that otherwise, you will start the eviction process.

8 Begin eviction proceedings

If they’ve missed 2 months’ payments, you have the right to evict a tenant for not paying rent under the Housing Act 1988. There are two processes, though the government’s Renters Rights Bill is due to remove the option of Section 21 evictions in the near future.

Section 8

You can give a Section 8 notice at any point, but only for certain reasons, such as unpaid rent or other breaches of the tenancy agreement. You should:

• State the broken tenancy agreement clause
• Issue the tenants with Form 3, available on gov.uk
• Give the correct amount of notice (2 weeks and 2 months depending on the reason)

Section 21

You can issue a Section 21 notice for a ‘no fault’ eviction if you:

• Have not received an improvement notice in the previous 6 months
• Hold a valid EPC
• Issue the tenant with Form 6a to give notice
• Are past the first 4 months of the tenancy
• Give 2 months’ notice minimum

If the tenants still won’t pay rent and won’t leave the property, apply to court for a possession order. The court could also order the tenant to pay rent arrears, court fees and legal costs. Whichever route you go down, we recommend consulting a legal expert. Once your property is vacant, you should consider whether you need to acquire empty property insurance to protect the home.

Know how to handle a renter not paying rent?

We will happily answer your questions about your rental property in Rotherhithe, Canary Wharf, Canada Water, New Cross or the surrounding areas of South East London. Contact the team at Oliver Jaques.