It’s a common fear amongst Landlords, but it doesn’t happen often.  

There is always a chance, but perfect paperwork is the key. 

We like to think that we choose the right tenants, but they can turn bad, or they could lose their jobs, anything can happen, and they might not pay. 

When this does happen, it’s usually infrequent. However, we do have a process to ensure it doesn’t happen.  

We have an incredibly low arrears rate, and you probably won’t believe us- it’s 0.5%. Well around that, it’s actually a little less and we’re telling the truth.  

When looking into property agencies we wanted to buy, a few had a 20 to 40% arrears rate, and we were in disbelief! 

Any lettings agency should have a process for dealing with unpaying tenants, and this is ours;  

• Check the bank every day- this way you can keep on top of tenants who haven’t paid and act quickly. If you contact them in a week saying their rent is a week late, you’re setting the precedent that a week is acceptable. 
• Call them on the telephone- it’s not a chat or you reminding them they haven’t paid because they know they haven’t. It’s you ringing up and asking for it.  

Being a landlord is a two-sided agreement, and one side is you recieiving payment for providing a secure and decent home for them.  

If you provide a safe home, reference them well, and put them in perfect paperwork, you highly reduce the risk of them not paying.  

As we stated at the beginning, paperwork is the key.  

You can’t serve notice if you don’t have an EPC, the right gas or electric certificate, or a registered deposit, and you have to be able to prove it all.  

If you do everything right, if they don’t pay notice, chase them up and ask for payment.  

We have seven notices in seven days, where we contact them every day until the 7th day, and if they haven’t paid, we knock on the door. Another factor you may not have thought of is they could have left; they may have done a runner. 

Between the 7th and 28th day, there is some contact, but as a Landlord you have to be careful not to harass the tenant. It won’t look great on you if it goes to court, and also, they may have lost their job or be in a tight spot, so you have to be realistic and compassionate whilst taking action.  

On the 28th day, we always ask for a repossession.  

We serve a Section 8, 20, 21- whatever it may be. Don’t worry about Section 21 being abolished, you can always get the tenant out.  

The idea is to get a good one in the first place to avoid all this! 

The Twin Track Process is what we follow when getting possession; we refer to it as a ‘Fast Track’. It includes chasing arrears, which you can do separately, as well as debt collection. Think of it as a filter- if you have a decent house, referencing, and good paperwork, you are narrowing your problems.  

Check up, be quick, and phone after the first day.  

Tenants usually do pay and if not the 7th day is commonly the final nudge. Even if it goes as far as the 28th day and you serve notice, they’re likely to pay it in full, or partly, or they may even set up a payment plan.  

Our arrears rate is 0.5% and it’s by following this process and choosing good tenants to begin with.  

It’s what you do about it if they don’t pay; that’s what matters.