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Unfortunately, I’ve dealt with my fair share of rent arrears – and I believe most long-term landlords have. It’s part of the business.
Experience has taught me that there is no “one fits all” approach when dealing with late rent, because the right course of action will largely depend on the dynamics of your relationship with your tenant(s) and the reason for the arrears.
For example, I tend to have healthy and personal one-on-one relationships with all my tenants (because I’m self-managing and hands-on), so in most cases I can comfortably send my tenants a friendly text message to give them a nudge, and go from there. And I generally think that’s the best approach if it’s an option. However, when that isn’t the case, and the relationship is more formal, I think triggering rent reminder notices is a reasonable option. It’s professional, it’s traceable and effective.
However, ultimately, it’s up to each landlord to assess their own situation and determine the best approach. So while I’m going to make the rent reminder notice templates I use available for download (for anyone to use), I do want to make the point that using them isn’t the default reaction.
Table of contents
- What are rent arrears reminder notices?
- When to serve a rent arrears reminder notice?
- Why serve rent arrears reminder notices?
- How to serve rent arrears reminder notices
- When to escalate matters onto the next step (i.e. eviction notice)
- Download Rent Arrear Reminder Notice Templates
What are rent arrears reminder notices?
I can’t stress enough, rent arrears reminder notices are NOT eviction notices. We’re no way near that stage and hopefully we never get there.
A rent arrears reminder notice is simply a formal and professional letter, reminding the tenant that they’re behind on rent and therefore should seek to pay the arrears ASAP.
Yes, of course, I’m sure the tenant doesn’t need a reminder – they’re fully aware they’re behind – but a courtesy reminder can be very powerful.
When to serve a rent arrears reminder notice?
So, I can only speak for myself, as I don’t think there are any hard and fast rules here.
I think timing is key and finding a balance is important here – you don’t want to serve the notice too early (as that may seem unreasonable), but at the same time you don’t want to leave it too long (as that will give the tenant the opportunity to fall deeper into arrears).
I usually leave it 10 – 14 days, as I want to get out the door before next month’s rent is due.
Why serve rent arrears reminder notices?
There’s a few reasons for sending rent reminder notices:
- It’s a professional approach and shows the tenant you’re doing things properly (which in itself can act as a catalysts for them to cover the arrears).
- God forbid if matters escalate and the rent arrears continue and this ends up going to court, you may need to prove that you served proper notice and did everything within your powers to resolve the issue reasonable.
- Rent arrears notices can be tracked, either by recorded delivery if posting them, or through emails.
How to serve rent arrears reminder notices
- Post – recorded delivery
Both methods make it easy to show proof of delivery (which is essential).
I recommend writing a “friendly” covering letter/introduction with the rent reminder notices – don’t just go in raw with the notices – informing the tenant that you’re taking this step because it’s protocol, otherwise it might come across as aggressive.
It’s also worth mentioning that you’re willing to work with them to get the matter resolved (presuming that is the case?). It’s not uncommon for tenants to go radio silent when they’ve fallen into arrears – remember, it’s most likely a scary time for them as well – so it’s important to try and encourage communication. Being kept in the dark can be extremely frustrating and scary, so keeping the situation amicable usually yields the most productive outcome.
When to escalate matters onto the next step (i.e. eviction notice)
Damn, shit has hit the fan if you’re interested in this part.
I’m sorry, and I’m with you for it.
This part can be brutal, but the most valuable piece of advice I can offer you is to ensure you remain composed at all times; act rationally and remain within the confinements of the law. I see it all too often, where landlords let their emotions take over them (which I totally get, because it’s our livelihoods on the line here) and end up doing more harm than good.
If the rent reminder notices don’t work and your tenant is still in arrears and possibly incurred further arrears – and you don’t see the situation resolving itself – then in reality, the next step is most likely going to entail serving a Section 8 eviction notice (this can only be served after your tenant has racked up 2 months of arrears). This approach is definitely jumping from a feather to a hammer, so proceed with caution. If you feel out of your depth, you might want to consider using a professional rent arrears and eviction service (I often think this is the best approach, especially for novice landlords).
But again, I must reiterate, it will depend on your circumstances, because your tenant may have a plausible reason(s) for the arrears and offer solid reasons to give them further time.
I’ve written an in-depth blog post on managing rent arrears, so I recommend reading that first to help determine your next steps.
I’m still here for you, but best of luck!
Landlord out xo
Disclaimer: I'm just a landlord blogger; I'm 100% not qualified to give legal or financial advice. I'm a doofus. Any information I share is my unqualified opinion, and should never be construed as professional legal or financial advice. You should definitely get advice from a qualified professional for any legal or financial matters. For more information, please read my full disclaimer.
Any documents you download from this website are just examples of its kind and should be checked by a professional. I give no warranties or representations concerning the documents, and accept no liability in relation to the use of the documents.
Oh yes.. The dreaded late payers! The last guy I had in my house was a nightmare! Every month I had to chase him.
So.. With when the next one moved in it was standing orders all the way! 1st of the Month now I get my money. I told the person this was part of the deal and said I wouldn't let to them without a standing order setup.
Touch wood she's been in there 5 months now and I haven't had a payment late by 1 day.
Maybe say to your person.. "I'm putting this in place as you always seem to forget. This will take that stress off your hands."
I hate chasing people as well and it's a great feeling knowing the money will just show up.
Also.. I find it's a great test when you're showing people. I just tell them upfront that it HAS to be a standing order.. If they make any kind of moans I show them the door.
All the best!
Simon