What to do when your tenant stops paying rent: Seven important steps

If your tenant has stopped paying their rent, follow these seven key steps to resolve the issue as quickly and effectively as possible.

1. Contact the tenant

First and foremost, you should contact the tenant by telephone to speak with them about the missed payment. A polite and friendly phone call at this stage can help you determine if the tenant knows about the missed payment and if they have any financial hardships to work through.

After the phone call, write an email confirming what you discussed as proof of communication. You need to document all communication you have had with the tenant to try and resolve the issue amicably.

2. Give them some time to make the payment

Sometimes there can be a delay with a bank transfer, or perhaps the tenant has received payment from their employer a few days late. Agree with the tenant for them to pay the outstanding rent as soon as possible but give them some time.

3. Agree on a repayment plan

You could agree with your tenant to set up a repayment plan to clear their rent arrears by increasing their monthly rent in the future until the arrears have been cleared. Discuss this with your tenant to make sure any repayment plan is affordable for them.

4. Consider a rent reduction

If you have a good relationship with your tenant and they have not caused any trouble in the past, consider reducing the rent temporarily to support them with their financial situation. This will allow you to keep receiving rental income until the tenant has solved their financial problem.

5. Put it in writing

Make sure all agreements and communication with the tenant are put in writing. This includes the outcome of conversations, any payment plans agreed or timelines for paying back the arrears.

6. Contact the guarantor

If your tenant has a guarantor, you will need to contact them if the tenant cannot pay the arrears. The guarantor is required to make any outstanding payments on behalf of the tenant.

7. Seek legal advice

If you are still not able to recoup the arrears from the tenant or the guarantor, you must send a letter in writing confirming that you will begin eviction proceedings unless the arrears are cleared within seven days from the date of the letter. Obtain legal advice from a specialist to ensure you know how to proceed with the eviction process.

Now that you've finished reading this blog, it's time to take action! Whether it's implementing the tips you just learned, sharing your thoughts in the comments section, or spreading the word to others who may benefit from this information, don't let this knowledge go to waste.