Rent arrears are
quite simply a cessation of income for the landlord. Non-payment of rent is one
of the most common reasons for repossession but many landlords are reluctant to
take this action - trusting in the tenant to put things rights in the long
term. Obviously, every case differs but the landlord must be attentive to their
business and while a little leeway may be appropriate sooner or later financial
considerations must prevail.
Good accounting is essential in order that
the landlord is immediately aware of a problem and can address it without
delay. If the rent is paid by bank standing order the landlord should monitor
their account within a couple of days of the rent payment date to ensure that
funds are received. If the landlord prefers to collect the rent personally then
they have an immediate indication of a problem.
One aspect which cannot
be ignored is when the rent is paid as Housing Benefit by the local authority.
It is essential that the benefit is paid directly to the landlord and not the
tenant. In the event that the tenant ceases to qualify for the housing benefit
the landlord will know immediately and can then take action.
The
landlord should be aware that as soon as the tenant is two months behind with
the rent the property can be repossessed. If repossession is effected by the
conventional route the rent arrears can be added to the claim at no further
costs. However, if the Accelerated Possession route is adopted the recovery of
the rent arrears becomes the subject of a separate action, probably using the
Small Claims Court. This is fully explained on our page at
Repossession Orders.
To commence
repossession proceedings please go to our repossession
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