What to Do When a Tenant is Late on Rent in Manchester and Rochdale 

If a tenant is late making a rent payment, it can be a worrying time for landlords, especially if they are reliant on the rent to cover mortgage payments. Even tenants who are usually reliable might miss rent payments for a range of reasons.  

Sometimes a missed payment might be a simple oversight, or it could be a sign that your tenant is in financial difficulty. It is important to approach the situation calmly and in line with all the regulations that apply. 

We’ve provided some guidance for landlords in Bury, Tameside and across Manchester to help resolve the situation as swiftly and amicably as possible. 

How To Deal With A Tenant’s Late Rent Payments?   

If your tenant is late making a payment, the first step should be to contact them to check whether they are aware that they have missed a payment. You can do this with a text message or phone call but you should follow it up with an email so that you have written records of your communications. 

What To Say To Tenant When Rent Is Late? 

When communicating with your tenant, remain polite and courteous, and show empathy if they are having financial difficulties. When sending the first reminder, you can use wording such as: 

Dear (Tenant’s Name) 

I hope you are well. I am writing to let you know that the rent due on (date) has not yet been received. The amount of (amount) was due on (date). 

Please can you advise when the payment can be expected. If you would like to discuss a payment plan, please get in touch as soon as possible so we can find a solution to prevent any further action and to help ensure we meet our obligations under the tenancy agreement. 

I look forward to hearing from you. 

Kind regards, 

(your name and contact details) 

How Late Can A Tenant Pay Rent? 

Unless you have included a grace period in the tenancy agreement, the tenant should make the payment on the due date. If the payment has not been received on the due date, an informal reminder may resolve the issue if the tenant then makes the payment. 

From a legal perspective, once a payment is 14 days late, the landlord can send a formal letter, stating that they will be forced to follow legal procedures to seek possession of the property.  
 

Can You Evict A Tenant For Paying Rent Late? 

Yes, the landlord can evict a tenant by serving a Section 8 eviction notice for late rent payments but under the grounds of serious rent arrears, this can only be served following 2 months of missed rent and 14 days’ notice is required. The alternative option is to serve a Section 21 notice and then attempt to recover the arrears through a separate court claim. 

How Many Months Can A Tenant Be Late On Rent? 

As soon as the tenant misses a payment they are in breach of their tenancy agreement but if the landlord chooses to start eviction proceedings under the grounds of serious rent arrears, the Section 8 can be served after two months of rent payments. 

How To Deal With Late Rent Payment? 

These are the recommended steps to follow when dealing with late rent payments: Check the tenancy agreement 

Firstly, check the tenancy agreement to see if there is any grace period included. Grace periods will usually be a few days maximum. 

1. Contact the tenant immediately 

Get in touch with the tenant to remind them that the payment has not been received and give them the opportunity to make the payment. 

2. Record all communications 

When communicating with your tenant, keep a record of every communication as you may need to use it as evidence if you end up going to court to recover missed rent payments and to gain possession of the property. 

3. Avoid harassment or unlawful eviction 

Even if you are frustrated because the tenant is not responding to your communication, it is important that you follow all the legal rules. This includes not harassing the tenant and you should never be tempted to take actions that would be deemed as an unlawful eviction e.g. changing the locks. 

4. Suggest a payment plan 

If your tenant advises that they have some financial difficulties, offering a repayment plan can help to resolve the situation. For example, the outstanding rent could be spread out and added to the next 3-6 months of their monthly rent payments. 

5. Send formal reminders 

Once a payment is 14 days late, a formal reminder can be sent to the tenant advising them that you may be forced to take further action and seek possession of the property. 

6. Charge interest/late fees (if agreed) 

After 14 days, landlords are entitled to charge interest on the missed payment of up to 3% above the Bank of England base rate. This can only be done if the tenancy agreement stipulates that interest will be added to missed rent payments. 

7. Contact their guarantor 

If the tenant has a guarantor, you should contact them to advise of the late rent, as they are legally responsible for paying missed rent payments if the tenant cannot make the payment. 

8. Contact rent guarantee insurance 

If you have taken out rent guarantee insurance, contact the company to advise them of the situation and to find out how to submit a claim. You can then use your insurance to recover the missed rent payment, minus any excess payment that is due. 

Seek mediation 

You may want to consider using a mediation service to help resolve the situation before you get to the stage where you need to take court action. Landlord and tenant mediation services can help to come to an agreed arrangement, such as payment plans. 

9. Get legal advice 

Before you start legal action with the eviction process, it is a good idea to get legal advice to make sure that you follow all the correct processes, as any breaches of the legislation could be classed as a criminal offence and you could be prosecuted. 

10. Pursue eviction via Section 8 or 21 

Decide which eviction notice you want to serve to obtain a possession order for the tenant to leave the property. The Section 8 notice grounds for eviction includes serious rent arrears after two months of missed rent payments. A Section 21 notice could speed up the eviction, but you would need to claim for arrears in a separate court claim. Section 21 evictions are set to be abolished when the Renters’ Rights Bill comes into force. 

11. Consider small claims court 

Landlords can use the small claims court to claim unpaid rent of up to £10,000. You can make the claim by using the online form on the gov.uk website and you will usually have a court hearing to decide the outcome. 

Chasing missed rent payments is one of the biggest frustrations for landlords but if you use a letting agent, they will do this on your behalf. If you’re a landlord in Royton, Saddleworth or Oldham, we can manage the rent payment collection process in line with all the legal requirements. Contact us to find out more about our letting services.