What are rent arrears?
Rent arrears arise when rent remains unpaid after it has become due under the tenancy or occupation contract.
If arrears continue to increase, a landlord may need to consider taking formal action to recover the unpaid rent, pursuing any liable guarantor and, where appropriate, seeking possession of the property.
Keeping an accurate rent statement or schedule of arrears, together with supporting tenancy documentation and records of payments received, can be important when pursuing a rent arrears claim.
Can a landlord recover unpaid rent from a tenant?
Where a tenant owes rent, a landlord may be able to pursue the tenant for payment of the outstanding debt.
The appropriate course of action will depend on matters including:
- the amount of rent arrears outstanding;
- whether the tenant remains in the property;
- whether there is a guarantor;
- the terms of the relevant tenancy or occupation contract;
- the tenant's current whereabouts and financial circumstances; and
- whether the landlord also wishes to regain possession of the property.
Our rent recovery solicitors can assess the circumstances and advise whether pursuing the tenant, guarantor or other available route offers appropriate prospects of recovery.
Can a landlord recover rent arrears from a guarantor?
Where there is a tenancy guarantor, it may be possible to pursue the guarantor for unpaid rent, depending upon the terms and enforceability of the guarantee.
We can review the guarantee agreement, advise on the extent of the guarantor's potential liability and, where appropriate, pursue payment from the guarantor alongside or instead of the tenant.
Can a landlord evict a tenant for rent arrears?
Potentially, yes. However, rent recovery and possession are separate issues, and the correct possession procedure will depend upon where the property is located and the circumstances of the tenancy or occupation contract.
Our landlord solicitors can advise you on both recovering the rent arrears and regaining possession of your property, where required.
How we can help recover rent arrears
Our specialist landlord solicitors can assist at every stage of the rent arrears recovery process, including:
- reviewing the tenancy agreement, rent statement and supporting documentation;
- advising on the prospects of recovering the debt;
- carrying out or arranging tracing where a former tenant's whereabouts are unknown;
- reviewing and advising on guarantor liability;
- sending a formal letter before claim;
- negotiating repayment proposals or settlement;
- issuing court proceedings for unpaid rent;
- obtaining judgment where the claim is not defended;
- advising on defended rent arrears claims; and
- advising separately on possession proceedings based on rent arrears.
Fixed-fee rent recovery for residential landlords
Step one: trace the tenant and assess prospects of recovery
Where required, we will instruct a trace agent to identify the tenant's or guarantor's current address.
We will review the available information and documentation and advise you on the prospects of recovering the rent arrears before further legal costs are incurred.
This allows you to make an informed decision about whether to pursue the debt.
Step two: letter before claim
Where it is appropriate to proceed, we will prepare and send a formal Letters of Claim to the tenant and/or guarantor setting out the sums owed and the basis of your claim.
We will monitor the deadline for response and advise you on the next steps following any response, repayment proposal or failure to engage.
Step three: issue court proceedings
If payment is not made and court proceedings are appropriate, we can prepare the claim form and particulars of claim and issue proceedings to recover the outstanding rent from the tenant and/or guarantor.
Our fixed fee covers the claim through to obtaining judgment where no defence is filed.
If the claim is defended, we will advise you on the issues raised, the next steps and the likely additional legal costs before progressing the matter further.
Why choose Stephensons for rent arrears recovery?
When rent remains unpaid, you need clear advice about whether the money can realistically be recovered and what it will cost to pursue it.
Our specialist residential landlord team can deal with both the debt recovery and possession aspects of a rent arrears case, allowing us to advise you on the overall strategy rather than viewing the unpaid rent in isolation.
We offer:
- specialist landlord debt recovery solicitors;
- experience pursuing tenants and guarantors;
- advice on both rent recovery and possession;
- fixed-fee options for stages of the recovery process;
- clear advice on the prospects of recovery; and
- representation in court proceedings where required.
For specialist advice about recovering unpaid rent from a tenant or guarantor, call us on 0161 696 6170.
Rent recovery case study
Successful possession and rent recovery claim
Ms. A initiated possession proceedings under Section 21 of the Housing Act 1988 against three tenants occupying her property, one of whom was a qualified solicitor.
The solicitor tenant sought to defend the claim by raising unfounded allegations of disrepair and issuing a counterclaim on the same grounds.
The matter was listed for a directions hearing, during which we presented compelling arguments that led the court to dismiss both the defence and counterclaim. As a result, Ms. A's claim for possession was successful, and the court ordered the tenants to pay costs in the sum of c£11,300.
Following recovery of possession, Ms. A pursued the outstanding rent arrears. This led to a further payment of c£14,800 by the solicitor tenant in full and final settlement of the arrears.
This case highlights the importance of asserting legal rights, even when the opposing party is a legal professional. It demonstrates that landlords should not be deterred from pursuing valid claims due to the perceived status or expertise of their tenants.