Debt Recovery Procedure – Landlords

The date the tenant is required to pay their rent is detailed in their tenancy agreement. We cannot guarantee that the tenant will pay on time but will make every effort to ensure they do. We will monitor rents regularly and check for arrears at least every two days.

If the rent is in arrears, we will adhere to the following procedure, unless alternative arrangements for a particular tenancy/property have been agreed with the landlord in writing.

Stage 1

If the rent is two days late we will endeavour to contact the tenant by telephone to bring this to their attention, request an explanation as to why the rent has not been paid and inform them that they are required to pay it within two days. If the tenant is not contactable by telephone then we will send them a letter or email which draws their attention to the arrears and asks them to ensure payment is made within two days or contact the office by telephone if they do not expect to be able to pay within this timeframe.

Stage 2

If the rent remains unpaid after following the above procedure, we will contact the landlord in writing, either by letter or email, to advise them of the situation.

We will endeavour to contact the tenant by telephone again to bring the arrears to their attention, request an explanation as to why the rent has not been paid and inform them that they are required to pay it within two days. We will also send the tenant a letter or email which:

  1. states that the rent is still in arrears despite the previous reminder;
  2. asks them to ensure payment is made within two days or contact the office by telephone if they do not expect to be able to pay within this timeframe;
  3. states that if they fail to pay the rent within this timeframe the landlord may begin legal action to recover the property and/or the arrears; and
  4. warns them that a late payment charge or interest may be applied if rent is not received within twodays (if the tenancy agreement allows for this).

 

If the tenant has a guarantor we will also contact them at this point to request payment. We will endeavour to make contact by telephone and also issue them with a written request for payment. 

Stage 3

If the rent remains unpaid despite the above two reminders, we will contact the landlord in writing to advise them of the situation. We will also continue to chase the tenant (and guarantor, if applicable) for payment by telephone or in writing at least once a week and will keep a written log of these actions and any response received from them. If the tenancy agreement allows for a late rent charge or interest then we will apply it at this point in the procedure. 

We will also endeavour to arrange a meeting with the tenant, ideally at the rental property, to discuss the rent situation and, where applicable, signpost the tenant to other sources of advice and assistance.

If we suspect or know that the tenant is in receipt of housing benefit such as local housing allowance or universal credit, we will contact the appropriate body to advise them of the arrears and apply for any housing benefit to be paid directly to us rather than to the tenant. In the case of universal credit, we will also apply for a regular deduction to be made from the tenant’s claim to pay off the arrears. 

Stage 4

If, despite the above actions being followed, it appears that the tenant is not going to pay the rent, we will advise the landlord of alternative options for chasing the arrears such as instructing a third party debt collection agency or the landlord pursuing the tenant through legal channels to recover the arrears. We will also discuss with the landlord the option of serving notice to end the tenancy. 

General Points

If at any point the tenant disputes the debt we will provide them with a clear written rent statement and offer to meet them face to face to explain the statement.

If at any point we believe that the tenant is struggling to manage their finances, we will signpost them to places they can seek advice such as Citizen’s Advice Bureau.

In the case of there being multiple or joint tenants/guarantors for a tenancy, we will follow the above procedure to pursue all the tenants and guarantors. 

In contacting tenants or guarantors who owe money, we will not act intimidatingly or threateningly, nor misrepresent our authority or the correct legal position. 

In the case of the tenant incurring debts other than rent arrears (for example damages to the property not covered by the deposit), we will follow all of the procedures outlined in stages 1-4 above that are applicable to the type of debt.