There are a number of ways you can support renters who have fallen behind on their rent. NRLA trainer and debt expert Julie Ford (main picture) explains more.

These are difficult times. As the cost-of-living crisis continues to bite, more and more of us are feeling the squeeze.

Latest figures from the English Housing Survey show more than 300,000 private rented households across the country were in rent arrears in the 12 months to 2022.

But what can you do if your tenant doesn’t pay their rent?

The important thing is not to panic.

The vast majority of tenants do not want to default on their payments, but the perfect storm of rising costs and a challenging economic climate mean many are struggling to stay afloat.

What many landlords do not know is that there is help available for struggling households, which can help bridge the gap while they get back on their feet.

No landlord wants to get rid of a good tenant, so the first step when it comes to tackling arrears is to get in contact with them at the earliest opportunity to find out exactly what has happened in terms of any missed payment.

You then need to work out the most appropriate way forward. Also, you could ask yourself whether there is a portion of the debt you could write off, or whether a repayment plan could help the tenant pay it off in stages.

If that’s not an option, the next stage is to consider whether the tenant is accessing benefits they may be entitled to. Talk to them to make sure they are claiming everything they should.

If you are confident that they are, then you could apply for support from either the local council or central government, which has billions of pounds in funding to help those struggling to pay their rent.

They could also be eligible for discretionary housing payments, which are available to those claiming housing benefit, or Homelessness Prevention Grants.

Other funding streams

There are also a number of additional funding streams offering grants and other financial support for individuals in need, depending, again, on their circumstances.

Many landlords don’t know this, but there are around 3,000 national and local charities, legacies and trusts, which in 2022 alone gave out almost £380million in funding.

Examples include:

• Town or parish-based groups

• Illness and disability charities

• Occupational charities, for example those offering funds to support hospitality workers, hair and beauty professionals or sales assistants for example.

• Military charities

• Utility companies, many of which have grant funding to cover utility bill arrears as well as other debts

• Support groups for the elderly.

This funding does not need to be paid back but does require a commitment from the landlord that they will do all they can to maintain the tenancy long term if their tenants access cash.

What if my tenant and I can’t find a way forward?

There will be tenants that are wilfully withholding rent and have no intention of paying, in which case you will need to serve a Section 8 notice on grounds of arrears, when they owe at least two months’ rent.

If your tenants are genuinely no longer able to afford the rent on an ongoing basis – even with short term help – then you can put them in contact with the council which is obliged to support them in finding new accommodation on the basis that the place they are living in is no longer affordable.  

They may also benefit from speaking to an independent debt adviser, with charities such as StepChange offering a free service.

More information:

For more information on Julie’s ‘Managing Rent Arrears’ course and to book, visit: nrla.org.uk/training

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