Managing rent arrears effectively

The most important thing to do is to get in touch with each other. For many tenants, this will be their first experience of not being able to pay essential bills and they may be apprehensive about contacting their landlord in the circumstances.

It is worse to ignore the situation and do nothing.

By starting a conversation with the landlord, the tenant can potentially relieve the stress of financial worries and access financial assistance from the landlord. For example, during the coronavirus pandemic the NRLA found that 90% of PRS landlords offered financial assistance in some way when asked by tenants affected by coronavirus.

The ability to help in this way will depend on the landlord’s own circumstances but, where the inability to pay is temporary, it will generally be better for the tenant and landlord to work together. This helps to avoid rent arrears spiralling and also means the landlord can avoid costs of reletting or evicting through the courts.

Tenants should contact their landlord via email or phone, clearly explaining their circumstances and asking what measures the landlord may be willing to provide in the circumstances to help alleviate the immediate debt problems.

Landlords can also proactively contact their tenants if they are concerned about the impact that the cost of living may be having on their finances. For most tenants, the impact on their finances will be temporary and they may be worried about talking to their landlord. By engaging compassionately with them, the landlord can not only help to reduce their money worries, but also ensure both parties are committed to working together to ensure any arrears are managed afterwards, allowing the tenancy to continue on long term.