37 per cent of UK landlords have tenants in rent arrears, according to new research from the National Landlords Association.
The study also reveals that 44 per cent of NLA members have suffered rent arrears over the last six months.
But only 50 per cent of landlords have attempted to recoup their loss of earnings in court.
NLA's research comes as YourMove reveals a surge in tenant demand, up 46 per cent year-on-year. The franchise's February report also claims that new landlord instructions have increased by 40.2 per cent.
Landlords: how to evict tenants in rent arrears
Even the best tenants can fall on hard times and default on their rent, especially in the current economic climate. And, at some point, a landlord may have to start the eviction process. Evicting tenants involves legal expenses and a period where the landlord won't receive any rent (as tenants rarely pay rent if they are facing eviction).
So, if you're a landlord, try to guard against the costs of rent arrears and eviction by keeping a special fund which you can dip into to pay for expenses should rent arrears, or eviction, happen.
But when the tenant gets into rent arrears, what can you do? Here's our top tips to what you can do to evict your tenant.
1. Once rent arrears have occurred, contact your tenant without delay.
Always monitor your tenant’s rent payment to avoid rent arrears building up. But if you find out that your tenant is in rent arrears, immediately get in touch with your tenant and impress the urgency that rent arrears should be paid. When you’re addressing your tenant about rent arrears, make sure that you get it in writing.
Offer help to your tenant to reduce their rent arrears. You may be able to assist your tenant in getting Housing Benefit to help them pay off their rent arrears.
2. Serve the necessary eviction notices immediately - Section 21 Notice and Section 8 Notice.
When evicting tenants for rent arrears, or any other reason, you must have a ‘ground’ for eviction and to have served the proper notice on the tenant before legal proceedings are started.
The two grounds for eviction most commonly used are:
The shorthold ground
This shorthold ground is used as part of the court process called the “accelerated possession procedure”. You can only use the shorthold ground to evict tenants if the tenancy is:
- an assured shorthold tenancy (AST) (or a short assured tenancy (SAT) in Scotland)
- there is a written form of tenancy agreement
- you have served a Section 21 Notice on the tenant (or a Section 33 Notice, along with a Notice to Quit, in Scotland)
- the fixed term has expired (or six months, whichever is the greater)
Serious rent arrears (ground 8)
This rent arrears ground (ground 8) is used as part of the 'normal' fixed date procedure (where a court order can only be made after a court hearing which you’ll have to attend to give evidence).
You can use this rent arrears ground if:
- the tenant is in rent arrears of more than two months (or three months in Scotland)
- you have served a Section 8 Notice on the tenant (or a Notice to Quit and an AT6 Notice in Scotland)
For more information on serving a Section 21 Notice and a Section 8 Notice, see Lawpack's article “How to terminate a tenancy agreement in England and Wales”.
And for more advice on serving a Section 33 Notice and Notice to Quit or AT6 Notice and Notice to Quit, see "How to terminate a tenancy ageement in Scotland."
3. Issue eviction proceedings through the courts.
Once you have served the Section 21 Notice or Section 8 Notice on your tenant in rent arrears, you need to obtain a possession order through the courts. There are two court eviction procedures:
The accelerated possession procedure
This eviction procedure can be used after you have served a Section 21 Notice.
When applying for a possession order, you should use the special accelerated possession procedure form and make sure that copies of all relevant documents are sent to the court.
If you win your eviction case against the tenant, you’ll receive a possession order and an order that the tenant pays fixed costs.
Advantages of the accelerated procedure
- It’s quicker than the rent arrears procedure because you don’t have to attend a court hearing.
- The tenant cannot stop you gaining possession of the property, as you’re allowed possession as of right after the end of the fixed term.
Disadvantages
- The eviction process isn’t that quick; it still takes about eight to ten weeks.
- You cannot use the accelerated procedure to claim rent arrears and obtain a money judgment.
If evicting the tenant is more important than reclaiming the rent arrears, you may want to serve a Section 21 Notice and wait for the longer notice period to expire. Then you can use the accelerated possession procedure so you’re certain that you’ll get an eviction order.
This would also be a better course of action if there is a chance that the tenant will raise a defence and counterclaim for compensation on the basis that your property is in poor repair.
Normal ‘fixed date’ proceedings
This eviction process involves a court hearing where you’ll have to attend and present your case to the judge, giving evidence to the court of the rent arrears due at the date of the hearing.
You’ll also normally be entitled to a money judgment for any rent arrears due at the date of the hearing, and an order that the tenant pays future rent until the tenant vacates your property.
If the tenant’s rent arrears remain unpaid, you can enforce this judgment through the courts and you’ll also be entitled to an order for costs.
In Scotland, all eviction proceedings for possession are under the ‘summary cause procedure’ at the Sheriff Court, unless in addition you’re seeking payment of rent arrears in excess of £5,000, in which case an ordinary action should be raised.
Advantage of the fixed date procedure
- The fixed date procedure can be used if the tenant is in rent arrears and the tenancy still has several months or longer to run (as you cannot evict under the shorthold ground during the fixed term). This eviction procedure can save you from serious financial losses.
Disadvantage
- You cannot obtain a possession order when using the rent arrears ground if the rent arrears are paid (e.g. by Housing Benefit) before the hearing date. This is all right if you simply want to reclaim the rent arrears, but may be annoying if you actually want to evict the tenant.
More landlord and tenancy information
Top tips on preventing tenant rent arrears
How to manage and evict troublesome tenants
Landlords: How to avoid a bad tenant
How to terminate a tenancy agreement in England and Wales
How to terminate a tenancy agreement in Scotland
Tenancy deposit schemes: what landlords need to know
Essential terms in a tenancy agreement
Can't sell your home? Then let it out! Useful tips for beginner landlords
Landlords: How to make a property inventory
Eviction: Q&As


