Facing the curveball of an unexpected missed rent payment can feel like an uphill battle, even for the most seasoned property developer. The anticipation of seeing that payment reflected in your account, and the subsequent cloud of uncertainty when it doesn't materialize, can seem daunting – but stay calm!

It's important to handle this situation delicately and level-headed, whilst also ensuring your own interests are protected.

Here are some steps and tips you should consider if you find yourself dealing with an unpaid rent issue:

Step 1 – Take a Look Over Your Lease Agreement

Before taking any actions just yet, it would be a good idea to review the tenant's lease agreement and ensure that you've given your tenant clear terms about rent deadlines, penalties, and the process in case of non-payment. Your actions should align with your lease terms.

Step 2 – Contact the Tenant

If a rent payment hasn't arrived on its due date, it's crucial to get in contact with the tenant immediately to resolve the situation as soon as possible. It might just be an innocent oversight, delays from the bank, or a temporary financial hardship.

Written correspondence – Write a formal, polite, but firm letter or email, alerting the tenant about the missed payment and inquiring as to the reason. Remember to mention the lease terms to remind them of their obligations. It is especially important to maintain a record of these interactions, should you need them for legal purposes in the future.

Want to download our 'Rent Chase Letter Sequence Templates' to make your life a bit easier during this stressful time? This downloadable document consists of five customisable templates, ranging from initial communications with tenants to a final demand to them and their guarantor. Available to download now in our members-only Downloads Inventory.

Dialogue and Understanding – If the tenant responds to your initial communications and explains that they are facing temporary financial difficulties, discuss possible payment plans or temporary solutions. Remember to always get any agreement in writing.

Step 3 – Threaten Legal Action

After multiple unanswered attempts to communicate with a tenant and their guarantor, we would suggest a last resort of threatening legal action, a month after overdue rent – in the way of a final demand notice.

You should then pass the account on to your solicitors with instructions to issue Court proceedings against the tenant and their guarantor.

Step 4 – Start an Eviction Process

In the UK, if a tenant has rent arrears of 8 weeks or more, you can serve a Section 8 notice citing ground 8.

Legal eviction should always be the last resort, considering its complexities and the time it takes. If the tenant doesn’t comply with final demand notice, you may start eviction proceedings.

• Hire an attorney/solicitor who is knowledgeable about your local landlord-tenant laws
• Lodge a complaint with your local court and attend the court hearing
• Never attempt 'self-help' evictions like changing locks or shutting off utilities, as these might land you in legal trouble

Keeping Records

Regardless of the scenario, it's crucial to keep a record of all interactions with your tenant concerning rent payments. Make sure you:

• Save copies of all written correspondence
• Document details of phone conversations or in-person meetings
• Keep a record of all payments and attempted payments

Tenant Communication Best Practices

Maintaining a good relationship with your tenants is key to avoiding, or solving, issues of unpaid rent. Here are some tips:

• Be professional and respectful – treat tenants as your customers.
• Maintain clear and open communication – be sure to listen to their concerns while reminding them of their commitments.
• Be firm but empathetic especially during unforeseen circumstances like illness or job loss.

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PLEASE NOTE: Always seek professional legal advice before moving ahead with landlord-tenant issues like eviction. The process varies drastically depending on your location and local landlord-tenant law. Being well-informed before acting can save you valuable time and resources.

Don't forget to join The Hive Members Club and download our 'Rent Chase Letter Sequence Templates' now!