Tenant not paying rent: what landlords need to know

Rent arrears are relatively rare in the private rented sector. Data from the English Housing Survey shows that less than 10% of tenants fall into arrears at any point in a 12-month period, and even fewer experience persistent arrears. Even so, when arrears do happen, they can be stressful for everyone involved, especially as many landlords will not have dealt with the situation before. This guide sets out what to do if a tenant stops paying rent, from the first conversation through to recovering unpaid rent, and where tenants can turn to for extra support. 

How to prevent rent arrears with your tenant

The best way of preventing arrears is by selecting tenants who will pay the rent on time and in full.  

This can usually be identified through properly referencing and credit checking applicants to see if they: 

1. Have enough income to afford the rent;  
2. Have a good credit history with no evidence of non-payment (such as a county court judgement);  
3. Can obtain a suitable reference from their previous landlord.  
4. Can prove they are who they say they are. 

For a small fee, NRLA members can perform these referencing checks via NRLA Tenant Referencing. 

Alternatively, for landlords who want to perform the check themselves, we have a range of templates, including application forms and previous landlord references, in our guide to referencing tenants..  

What to do if your tenant doesn't pay rent: a step-by-step guide

If rent arrears build up, it is important to act quickly and stay within the law. Delays can affect the legal options available and make recovering the debt harder later on, so following the right process from the outset matters. 

Step 1: Communicate with your tenant

Starting a conversation with a tenant as soon as an issue arises can ease the stress on both sides and open the door to a practical solution. Arrears are not always deliberate. A tenant may have lost their job or be waiting on a benefit claim, so a calm, understanding approach is far more likely to get results than an aggressive one. 

Where a conversation happens by phone or text, it is good practice to follow up in writing with a short summary of what was discussed and agreed, giving the tenant a reasonable window, usually seven to 14 days, to raise any corrections or disagreements. This creates a clear paper trail that both parties can refer back to. 

Where possible, agree a realistic, affordable repayment plan and put it in writing. If there is a guarantor in place, bring them into the conversation too, bearing in mind their own financial circumstances may also have changed since the tenancy began. 

The NRLA has a number of letter templates to help you start this conversation and, where necessary, document the steps you have taken to recover the arrears.   

For more detail on starting this conversation and keeping good records, see our guide to managing arrears effectively. 

If your tenant is not engaging with you then you can also offer mediation by a third party to reach a negotiated settlement.  

Step 2: Know what you can and cannot do

You are entitled to try and recover rent arrears, and you should do your best to do so. However, you must follow the law when trying to recover arrears. Particularly the rules set out in the Renters’ Rights Act.  

Avoid harassing the tenant or doing something that could be seen as illegal eviction. Both are offences that can lead to fines. As of 1st May 2026, this is up to a maximum of £40,000 by a local authority.  

Typical examples of harassment include things like: 

• Refusing to perform repairs 
• Threatening to change the locks or be physically violent to the tenant 
• Cutting off utilities such as electricity or heating 

Illegal eviction occurs where you prevent the tenant living in the property without obtaining a possession order. This could include things like: 

• Changing the locks 
• Having someone other than a bailiff evict your tenants 
• Using an incorrect notice claim the tenancy has ended 

Read more about civil penalty offences and enforcement of the Renters’ Rights Act rules here.  

You should also be aware that your tenant may enter a ‘Breathing Space’. During a ‘Breathing Space’ a debtor works with a debt advisor to work out a plan to pay off their debts. The Breathing Space will typically last 60 days and during that time, creditors are prevented from contacting the debtor about the debt, or taking enforcement action to recover arrears during this time.  

If you are notified that your tenant has entered a ‘Breathing Space’, you can read more about how it affects you in our dedicated guide.   

Where possible, agree a realistic, affordable repayment plan and put it in writing. If there is a guarantor in place, bring them into the conversation too, bearing in mind their own financial circumstances may also have changed since the tenancy began. 

The NRLA has a number of letter templates to help you start this conversation and, where necessary, document the steps you have taken to recover the arrears.   

For more detail on starting this conversation and keeping good records, see our guide to managing arrears effectively. 

If your tenant is not engaging with you then you can also offer mediation by a third party to reach a negotiated settlement.  

Step 3: Serve an eviction notice

If you cannot arrange a repayment plan, then the next stage is to seek a possession order. This will start with an eviction notice.  

Following the abolition of Section 21, Section 8 is now the main possession route for rent arrears cases. Notices must be served correctly and must set out the specific grounds being relied on. Getting this wrong, or serving notice before fully exploring the options above, can lead to a case being adjourned in court, which only delays matters further. 

Before serving notice, landlords should follow our pre-action plan for managing arrears and avoiding possession claims, which sets out the steps to take and the records to keep. 

For the full process of serving notice correctly, see our guide to ending a periodic assured tenancy. 

Section 8 notice

For arrears cases, the relevant grounds are 8, 10 and 11. Ground 8 is mandatory, meaning a judge will generally have to grant possession if it is met, but from 1st May 2026 it can only be used where the tenant is three or more months in arrears (13 weeks for weekly rent). Grounds 10 and 11 are discretionary, so the court retains a choice over whether to grant possession. As above, arrears caused by delayed Universal Credit payments do not count towards the Ground 8 threshold. 

Read our full breakdown of Section 8 rent arrears grounds for more on how these grounds work. 

Court possession order

If the tenant does not leave after receiving a Section 8 notice, your next step will be to apply to court for a possession order. You will need to have evidence of the arrears and what steps you have taken to recover the arrears.  

We have a detailed guide, including completion notes for filling out the forms to applying to court for a hearing for more on this process. 

Step 4: Recover the unpaid rent

After recovering possession via Section 8, there will usually be a county court judgement for the debt, but the arrears will still be unpaid.  

Landlords will have to consider at this stage whether it is worth trying to recover the arrears. If the tenant does not have much income, then repayment of the debt may come in very small payments and take a long time to clear. Many landlords prefer not to try and recover the arrears as a result.  

Deducting rent arrears from the tenancy deposit

If you have a deposit, then you may deduct some of the outstanding arrears from the tenancy deposit. 

See our guide to protecting a deposit in England for more on how deposit deductions work. 

Enforcing the judgement

Typically, if you have served a Section 8 notice based on rent arrears, then you will also ask the court to include a money judgement for the arrears. This judgement will be registered when you apply to court for a bailiff. 

Once this has been done, you may enforce the County Court Judgement in a number of different ways. Guidance on these options is available here.  

What help with rent arrears is available for tenants?

Tenants struggling with rent arrears may be able to access support including: 

• Breathing space: a debt moratorium giving tenants time to arrange an affordable repayment plan with a debt advisor, during which landlords cannot take action to enforce the debt. 
• Discretionary housing payments: extra help from the local council towards rent costs, on top of any benefit entitlement. 
• Universal Credit advances: an advance payment to bridge the initial five-week wait for a first Universal Credit payment, repaid gradually from future payments. 
• Universal Credit direct payments: landlords can apply for the housing element of a tenant's Universal Credit to be paid directly to them once arrears have built up. 

What to do if a tenant doesn't pay utilities?

Normally it will be the tenant’s responsibility to pay utilities and the landlord does not become liable for unpaid utilities. However, mistakes can happen, so if you are contacted for payment of a utility you should make sure you have evidence that the tenancy is ongoing and the tenant is the responsible person.  

Where you are the bill payer and the tenant is not paying money owed to you (e.g. using more energy than the fair usage policy), then it will usually be sensible to deduct outstanding payments from the deposit at the end of the tenancy. 

How we can help you

Managing rent arrears is easier with the right guidance and support behind you. We produce practical resources for our members, including template letters for arrears and a full pre-action plan, and our guide to managing arrears effectively can point you towards the debt advice and benefits guidance your tenant may need too. Join us to access this support and speak to our team about your situation. 

Can a guarantor be liable for rent arrears?

Yes, where a guarantor is named on the tenancy agreement, they can be asked to cover unpaid rent. Landlords should involve the guarantor in discussions as soon as arrears arise, and can send a formal written demand for payment if the arrears continue. An unpaid guarantor debt can also lead to a CCJ. 

Can you deduct unpaid rent from the tenant's deposit?

Yes, where both parties agree, outstanding arrears can be deducted from the tenancy deposit, and this can be a practical option for short-term arrears. Landlords should be aware that doing so means the deposit will no longer be available to cover any damage to the property. 

Can I change the locks if my tenant stops paying rent?

If the landlord wishes to end an assured periodic tenancy, and the tenant does not, then the landlord must follow the correct legal procedure. This means they must serve a Section 8 notice, obtain a possession order from the court and enforce that order via a bailiff or high court enforcement officer.  
 
Changing the locks without following the correct procedure is illegal eviction which can lead to a fine of up £40,000 or a criminal record.  

How much in rent arrears are needed for a section 8 notice?

From 1st May 2026, a tenant needs to be three or more months in arrears (13 weeks if paying weekly) before a landlord can rely on the mandatory Ground 8. Arrears caused by a delay in a Universal Credit payment do not count towards this threshold. 

See our guide to Section 8 rent arrears grounds for the full list of grounds and thresholds. 

How long do possession proceedings take?

This will vary depending on the court you are applying to. Court wait times vary significantly across the country with long delays particularly likely in London.  

You should expect to wait at least six months between applying to court and enforcing the judgement via a bailiff though.  

Who notifies the council when a tenant leaves?

This should be the tenant, but in practice it’s sensible for the landlord to notify the local authority if the bill payer changes or a tenancy ends. 

What can I do if a tenant receives Universal Credit but is not paying rent?

Where a tenant receives Universal Credit and arrears have built up to two months or more, the landlord can apply for a managed payment so that the housing element of the tenant's Universal Credit is paid directly to them rather than to the tenant. 

What is the difference between Section 8 and Section 21?

Section 21 allowed landlords to end an assured shorthold tenancy without giving a reason, but it has been abolished as of 1st May 2026.  

Section 8 notices  are now the only way for landlords to end an assured tenancy. This requires landlords to give notice specifying one or more grounds for possession set out in Schedule 2 of the Housing Act 1988, such as Grounds 8, 10 and 11 for rent arrears. 

Read more in our guide to Section 8 rent arrears grounds. 

Can a tenant be evicted during a fixed-term tenancy for rent arrears?

As of 1st May 2026, fixed-term assured tenancies no longer exist. They have been replaced by assured periodic tenancies. These tenancies are open-ended from the start and can only be terminated by the landlord if they serve a Section 8 notice citing one or more possession grounds.  

How do I report a tenant to a credit agency for unpaid rent?

If you have registered a county court judgement for the unpaid rent then this will be added to the tenant’s credit history. Similarly, if you pass the debt on to a third party debt collector it will usually be reported to the credit bureaus and added to the tenant’s credit history.