Late tenant payments can be a major concern for landlords, and it’s one of the top worries right alongside property damage. In this post, we’ll break down a tried-and-tested process that can drastically reduce rent arrears, keeping everything structured and professional to ensure you get paid.

Step 1: Daily Monitoring and Initial Contact (The 7-Day Rule)

The first crucial step begins before there’s even a problem: checking the bank daily. It sounds simple, but it’s vital. If you’re a landlord with multiple properties, monitoring rent payments each day will allow you to address issues immediately rather than letting them pile up.

The 7-Day Sequence:

• If rent hasn’t been received by the due date, contact the tenant the next day. Whether by phone, email, or WhatsApp (depending on your relationship with them), this contact should be firm yet fair. It might be a simple mistake or oversight, and many issues are resolved here.
• Contact them every day for the first week (hence the “7 in 7” approach). The final step of this sequence is a knock on the door. By this point, you’ve made multiple attempts to connect, and face-to-face interaction ensures the tenant is still living there.

Step 2: Escalate with a Notice of Intention (Day 7)

If, after seven days, you still haven’t received payment, it’s time to take things up a notch. This is where you issue a Notice of Intention. This document is semi-formal and lets the tenant know that you are serious about taking action if payment isn’t received.

• The notice clearly states that if rent isn’t paid, you will be forced to begin eviction procedures. Though serious, the wording is professional and empathetic, acknowledging that mistakes happen while reinforcing the importance of resolving the issue.
• This often works as a wake-up call for the tenant, as the situation is now more serious. It still leaves room for negotiation if the tenant is facing temporary financial hardship.

Step 3: Continuing Contact and Monitoring (Days 7-28)

This part of the process is about balancing persistence with compassion. By now, you’ve made multiple contacts and possibly issued a Notice of Intention. Now you need to ramp up your efforts while maintaining professionalism.

• The goal is to ensure the tenant knows you are serious, but you are also open to understanding their circumstances. Regular follow-up is key. If the tenant has committed to a payment plan or made partial payments, stick to the agreed-upon dates and check in to ensure they follow through.
• If the tenant is struggling due to job loss or other hardships, help them explore potential solutions like benefits or government aid. Show empathy, but be clear about the importance of paying rent.

Step 4: Legal Action (Day 28)

After 28 days, if the tenant still hasn’t paid or come to an agreement, it’s time for the final step: legal action. Depending on the situation, you’ll either issue a Section 21 notice to reclaim possession of the property or pursue other legal avenues like a Section 8 notice for breach of contract.

• By now, all your actions should be carefully documented to ensure you are protected legally. This is crucial if the issue escalates to the courts.
• The legal process is a last resort, but it’s necessary in cases where the tenant is non-responsive or refuses to pay. Luckily, if you’ve followed the previous steps, you’ve likely resolved the issue long before it reaches this stage.

Conclusion: A Proven System for Reducing Arrears

By sticking to this 28-day process, dubbed the “7 in 7, 21 in 21” system, you’ll find that rent arrears drop significantly. In our experience, this method has reduced arrears to less than 1% across a large portfolio of properties. It strikes the right balance between compassion and professionalism, helping to maintain good landlord-tenant relationships while ensuring rent is paid on time.

The key to success is consistency: daily monitoring, clear communication, and sticking to the outlined process.