Non-payment of rent is always an uncomfortable subject. It’s important to remember that it can happen for a number of reasons, from simple mistakes to financial problems. For landlords, non-payment of rent means a hole in the budget and problems with buy-to-let mortgage repayments.

In this blog, we look at the service estate agents like Cobbles provide to landlords when tenants do not or cannot pay the rent. These services are available to landlords who use the “rent collection” and “fully managed” services, but not to the “let only” landlords. 

It’s important to remember that the situation could escalate to an eviction. In the event of eviction, it’s vital that we have behaved professionally and followed procedure on behalf of our landlords. If we don’t, we can undermine the eviction process and the non-paying tenants might stay on.

1.     We talk to the tenants and try to solve the problem informally

This is always the best starting point when a tenant has not paid the rent. We talk to tenants as early as possible after the non-payment of rent. Sometimes it’s a simple mistake, like the tenant not knowing when the rent was due or mistyping the amount on their banking app. 

If the tenant genuinely cannot pay the rent, talking together about it is the best way of keeping channels of communication open. Depending on the landlord and the tenants, sometimes a good solution is to adjust the rent or create a payment plan to help the tenants keep up.

2.     Talk to the guarantor, if there is one

Sometimes, referencing has revealed that one of the tenants needs a guarantor. The function of the guarantor is to provide the rent if the tenants cannot pay. They have signed a document to say that they are liable for the rent so if there is a guarantor, we always ask them for rent after speaking to the tenant. 

3.     Contact tenant and guarantor in writing

If, after fourteen days, rent has still not been paid, we can follow up again with both the tenant and guarantor. While we may make a phone call, we also follow up in writing so we can provide evidence that we are following procedure. It is also harder for a tenant to plead ignorance if there is an email asking them for the rent. As before, it’s important that we follow procedure exactly or we risk losing your right to evict your tenant. 

4.     Start eviction proceedings

If the rent is two months in arrears, we will talk to you about starting eviction proceedings. This will be a Section 8 notice as the tenant has broken the terms of the tenancy by not paying the rent. Together we will decide how long a notice period to give the tenants, but this is usually fourteen days. Alternatively, the tenant might agree to surrender the tenancy, which is when they agree to move out without any fuss but sometimes without paying the outstanding rent. 

Reclaiming unpaid rent

We know that regular rent is part of your financial plan, and not receiving it can cause problems. Fortunately, landlord insurance usually covers you for non-payment of rent, and you can usually claim back what the tenants were unable to pay. 

Let property in Guildford

Our thorough referencing service means that it’s rare for a Cobbles tenant to get behind with the rent. However, if tenants don’t pay, we have the knowledge, experience and paperwork to deal with it appropriately on behalf of our landlords. 

If you have property to let in Guildford, we’d love to hear from you. In addition to rent collection services, we also offer let only and fully managed property services so we can give you the right support for your needs. Get in touch today on 01483 457 000.