What to do for tenant not paying

Tenants who do not pay their rent can be very frustrating for landlords.

It might happen that the tenant’s circumstances change or that they find another place, but if this is something they could have told you about before, it will hurt your relationship with them if you evict them. However, there are some cases where the landlord has to take action against the tenant.

In most cases, a tenant not paying their rent is a breach of contract and the landlord can take legal action against them in order to get back any money they are owed or allow you to end the tenancy. You cannot be forced into letting someone stay in the rental property if they don’t pay – this is called retaliatory eviction.

Tenants renting from the social housing sector are governed by different rules than private renters. You can find out more on our page about eviction of social housing tenants .

If they don’t leave after you’ve given them notice, you will need to go through the legal process of ending the tenancy.

Before taking any action, talk with your tenant about their situation and how they plan to pay the rent in future. If they are experiencing financial difficulty, there may be options available to them that do not involve eviction.

Of course it’s important that you keep evidence of your attempts to speak with them. For example you could keep a written record in a rent book or tenants’ file, and make a note when you’ve made contact. Sending letters by recorded delivery will help prove they received your communications.

Waiving the Rent

If you want to waive the rent due from a tenant, it’s very important to make this clear in writing. It can be difficult to get back rent once you’ve waived it, so think carefully before you do!

Entering the Property

You may need to take court action if your tenant won’t allow you access into the property or is refusing to pay any rent while they live there.

If you want to know more about this option, see our information on evicting tenants from private rented homes .

In some cases, you may be able to ask the Court to allow you access the property. This should only be used as a last resort.

Further Options

If you have difficulty getting your tenant to pay their rent, there are organisations that can give you advice and support which will depend on where they live. For example, Shelter provides free housing advice for tenants and landlords in England and Wales . The National Landlords Association is a membership body for private sector landlords and can offer advice and support.

If you’re uncomfortable talking to the tenant yourself, an adviser may be able to do it for you.

Eviction

If all other avenues fail, there are two ways of evicting a tenant who hasn’t paid their rent:

  1. Getting a court order for possession – this will allow you to evict the tenant if they don’t leave.

If you are trying to get your tenant evicted because they haven’t paid their rent, it’s important that you do this within the correct legal time frame. If you don’t, you could end up being liable for money that is owed to them.

5 Benefits of hiring a collection agency

Most companies have been struggling with debts. These debts make it difficult for companies to grow and are also time-consuming when it comes to recovery. Therefore, to reduce this burden to companies, many collection agencies have been formed. A collection agency’s primary role is to make debt follow-ups for repayment on behalf of another company or organization. These collection agencies are usually paid a commission or fixed amount by the respective companies. Below are some top benefits of hiring a collection agency:

  1. Takes off the debt burden

Today, most organizations are outsourcing the services of collection agencies to withdraw the burden involved. A collection agency properly understands how to go about the whole process without destroying your client relationship. Additionally, if you outsource the debt collection function, you will reduce the time required for following the debts and use it productively to grow your business. Lastly, you will not incur additional costs for hiring people to collect debts for your business.

  1. Experience

A collection agency will use both its knowledge and experience to ensure a successful recovery. As a business owner, you might lack this experience, and that why you might not be successful in your debt collection campaign. If you want quick recovery, simply outsource the services of a professional collection agency.

  1. Increased payment chances

Sometimes, you might keep calling your clients to make their payments for goods or services without any success. In this case, you need the services of a collection agency. They usually have well-trained professionals who understand the best tricks and techniques for luring clients to make their payments. Additionally, they understand all collection laws that are essential in preventing any legal fallout. For instance, collection agencies will use polite language that sometimes involves threats to their credit scores and history.

  1. Legal protection

Debt collection has its laws and regulations. If you decide to DIY debt collection, you might end up infringing the rights of your debtor. This can further escalate to a lawsuit where you’ll be involved in another battle. In this case, you might even end up losing more money than what you were following from the debtor. Using a collection agency is beneficial since if a legal battle arises against your business, you will be given the necessary documentation to prove that the collections were lawful.

  1. Documentation

The process of debt collection involves businesses giving collection agencies some records containing clients’ information such as their phone numbers, emails, and debt amount. A collection agency will document all this information together with any client comments so that it becomes easy to retrieve each client’s file from time to time until full payment is made.

In conclusion, these are some top benefits of hiring a collection agency. For businesses that want to focus on other areas of operations and eliminate the need for hiring additional staff to collect their debts, it’s essential to find a professional debt collection agency’s services. You’ll cut down on cost and increase business efficiency.