How to deal with non-paying tenants

Tenants who stop paying rent is often a worry for most landlords. We have all heard stories on how long it can take to evict a non-paying tenant and how a landlord can potentially lose thousands of pounds due to lack of rental income.

In the last five years we have come across various situations where tenants stopped paying their rents. The reasons vary. For instance, it can happen when tenants are going through challenging moments in their lives and, for one reason or another, had to delay the rent payment. On other occasions, tenants would simply stop paying, without giving us any notice or saying anything to us. Whatever the situation is, it is important to spot the issue on time.

One of the most important things you can do is to ensure you have a system in place that allows you to check your tenants’ rent payments.

If you have just a few tenants, then simply using basic online banking will suffice (and I would also recommend having a basic spreadsheet where you track all payment dates). But what if you have dozens of tenants?

In this case you should opt for a more sophisticated system. For instance, we use an online accounting software package that enable us to monitor the rent payments. When a tenant misses a payment, this is immediately flagged up in the system and we know straight away that there is a delay, since day one.

The second most important thing is communication.

In most cases,  the tenant will contact you and inform you about the situation. When you liaise with the tenant, you need to make sure that you are understanding but also assertive at the same time. The most important thing is to ask the tenant for the exact date when he/she expects to be paying the rent. If the date is too far ahead, then ask the tenant to pay the rent in parts; the first amount would be paid as soon as possible and, the remaining part, in their proposed date.

When a tenant is late with their rent payment, the longest we would suggest you to wait is two weeks. After this period, you really need to know what’s going on so that you can take action and sort out the situation.

If rent is delayed for two weeks, the first thing we would do is to suggest to the tenant to start looking for more affordable accommodation. In addition, we would offer the tenant a payment plan. As an example, even if it’s just £50 a week, it will start clearing out the rent arrears.

If the tenant is not willing to create a payment plan, I would suggest you to serve a Section 8 notice straight away and also fill in the online money claim applications. The process is very easy and quick and it just costs £25. The court will then contact the tenant within the next 14 days to arrange the repayment.

It is important that you offer the tenant the option to find alternative cheaper accommodation as often tenants feel that they are tied to a long contract and therefore discard his possibility straight away.  In my view, it is preferable to have a tenant who’s not paying the rent to move out earlier and to have a new tenant moving in as soon as possible, rather than waiting for the rent arrears to accumulate.

In summary, these are the main points to consider when dealing with non-paying tenants:

  1. Have a good system in place that allows you to check the rent payments.
  2. Communication – always know what’s happening and in what situation your tenant is in.
  3. Offer to pay the rent arrears in parts.
  4. Suggest the tenant to find cheaper alternative accommodation.
  5. Time – if the tenant is not communicating with you, do not wait to serve a Section 8 notice and fill in a court application.
  6. If there are any arrears after the tenant has moved out – fill in the online court money claim.

If you have any questions with regards to this topic, please do not hesitate to contact us.

With Gratitude,
Ilva Pam
www.primepropertycare.com

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Isabelle Marchand
Isabelle Marchand
09:10 02 Dec 18
I was a tenant for PPC for 3 years and always found them very responsive and truly helpful. They have sorted any problem that had come up with the flat every time and with no delay. Would truly recommend!
Yunsuh Huh
Yunsuh Huh
18:49 03 Nov 18
I lived at the flat managed by Prime Property Care ltd. My experience is really amazing! In terms of cost, quality, and location, it was the best deal. I found one close to my office, just like 15 mins away from Bank station but the rent is so affordable. lived there about 2 years. Moving out now since I will get married and need a bigger room but my experience with Prime Property Care ltd is awesome!! I really like them and their service. They know you by your name. You also know them by their name. Hope you can find your home from these people as well!! MANY MANY THANKS to Prime Property Care ltd sincerely!!!
Allan Lewis
Allan Lewis
21:14 16 Oct 18
I have worked for Ilva and Alex for the past 6 years and have always found them to very professional and a pleasure to work for. Reports from the tennents are always complimentary and as a tradesman I find their service and commitment to their business is very professional and of a very higj standard. Highly recommended.
London S
London S
11:58 13 Oct 18
I've known Ilva and Alex for 4 years now. They have been super helpful and making a serious effort to change the letting industry in London. My journey would have been very different without their support. I have connected to so many great people through their events, which I am very grateful for! ~ Elena
Alex Soul
Alex Soul
14:01 08 Oct 18
I just wanted to say how proud I am with our Team and the way they deliver service to all our Tenants and Landlords. At times it can be challenging and difficult, but it is always rewarding to know that we really help our Landlords with getting that peace of mind they deserve, whilst helping and taking care of our tenants to ensure their stay is safe and pleasurable experience. Thank you all! We will keep striving for even better quality, bigger impact and more value in this industry for both Landlords and Tenants. With Gratitude, Alex (Founder)
Andrea Vucetich
Andrea Vucetich
20:02 30 Mar 17
I've been staying with them for 3 months now and given what I've seen around I feel like finding this agency was a veey lucky strike... Nothing exceptional about the house, it's just like in the description, but the price is fair for London average and I yet have to experience a problem with heating, intrusive inspections from landlord/agency or stuff like that... Which for the stories that I've heard around, really is as good as you get, I believe
margot pereira
margot pereira
15:17 26 Sep 15
It has been 6 months that Ilva and Alex are taking care of the flat where I actually live in London, and they are sincerely the best agency I ever met. They are really nice, flexible, comprehensive, and are concerned about the welfare of the tenants. In my case, they renovated all the flat held by a previous agency who let the flat in poor conditions. It is a pleasure to be in contact with these human persons, who are not establishing ridiculous rules in order to make money as I saw in previous agencies. I highly recommend their services :-) Margot.P
margot pereira
margot pereira
15:17 26 Sep 15
It has been 6 months that Ilva and Alex are taking care of the flat where I actually live in London, and they are sincerely the best agency I ever met. They are really nice, flexible, comprehensive, and are concerned about the welfare of the tenants. In my case, they renovated all the flat held by a previous agency who let the flat in poor conditions. It is a pleasure to be in contact with these human persons, who are not establishing ridiculous rules in order to make money as I saw in previous agencies. I highly recommend their services :-) Margot.P
Aarti Shah
Aarti Shah
22:01 24 Sep 15
I have used Prime Property Care for managing one of my properties for over 2 years. Never have my tenants felt so happy and well cared for by Ilva and Alex's warm and friendly approach. Their attention to detail and genuine passion for the service they provide to tenants makes an ordinary rented house into a comfortable living home. I could not recommend them highly enough.
Aarti Shah
Aarti Shah
22:01 24 Sep 15
I have used Prime Property Care for managing one of my properties for over 2 years. Never have my tenants felt so happy and well cared for by Ilva and Alex's warm and friendly approach. Their attention to detail and genuine passion for the service they provide to tenants makes an ordinary rented house into a comfortable living home. I could not recommend them highly enough.
Thor Portess
Thor Portess
20:14 24 Sep 15
I have used Prime Property Care's property management services for the past 3 years and have been in the property industry for 17yrs to date. Ilva and Alex provide a first class service and are ethical in their business practice. I've only had one problem tenant and Prime Property dealt with this situation both professionally and efficiently. Together with my tenants and business partners, we are very happy with Prime Properties services and are happy to recommend them. Thor Portess, London
Thor Portess
Thor Portess
20:14 24 Sep 15
I have used Prime Property Care's property management services for the past 3 years and have been in the property industry for 17yrs to date. Ilva and Alex provide a first class service and are ethical in their business practice. I've only had one problem tenant and Prime Property dealt with this situation both professionally and efficiently. Together with my tenants and business partners, we are very happy with Prime Properties services and are happy to recommend them. Thor Portess, London
Andreea Pavaloiu
Andreea Pavaloiu
19:53 16 Sep 15
When I first moved to the apartment it was not managed by Ilva. I cannot and do not want to remember the previous management agency. Needless to say they charged ridiculous fees for services they provided when they were no longer needed. And then the change in management occured and things finally started to look and feel normal, as standards grew. Ilva was extraordinarily committed to doing all the necessary work in the house, while also providing for our security and comfort. She was really understanding and present and made sure everything was done properly and in a short amount of time. Extremely kind, respectful and professional, she turned the property into a home. Soooo thank you so much for all the help. I totally recommend the agency for high quality accommodation in London. Best wishes, Andreea
Yury Khreptovich
Yury Khreptovich
21:11 08 Sep 15
The way this guys operate makes you fill that you in the good hands. Definitely will recommend to others. Keep up the good work!
Yury Khreptovich
Yury Khreptovich
21:11 08 Sep 15
The way this guys operate makes you fill that you in the good hands. Definitely will recommend to others. Keep up the good work!
Nelson Velosa
Nelson Velosa
17:58 04 Sep 15
We have known Alex and Ilva for many years. And it is hard to believe what the previous review said. When we used to live in England they helped us with our property needs. Now we work together. We have some properties in Portugal and guys always try to find the right buyers or tenants for us. When we were buying our own apartment, their advises were very useful and helpful. They work fast and very professionally and sometimes I surprise a lot how these young people can know so much and have so rich experiment. I strongly recommend to rely on their values and services they provide.
Nelson Velosa
Nelson Velosa
17:58 04 Sep 15
We have known Alex and Ilva for many years. And it is hard to believe what the previous review said. When we used to live in England they helped us with our property needs. Now we work together. We have some properties in Portugal and guys always try to find the right buyers or tenants for us. When we were buying our own apartment, their advises were very useful and helpful. They work fast and very professionally and sometimes I surprise a lot how these young people can know so much and have so rich experiment. I strongly recommend to rely on their values and services they provide.
K Kodra
K Kodra
13:35 04 Sep 15
I know Alex for over 10 years now and I know Ilva very well as well. They do put all the positive energy into what they do and stay highly committed to their hight ethical values. Growing business is not easy and for the last 3 years I have seen they have been doing exceptionally well helping Tenants and Landlords to find best solutions for their property needs in London. They have also advised me personally on a number of occasions with regards to purchasing and renting my own properties. I definitely rely on their values and services they provide. Kim
K Kodra
K Kodra
13:35 04 Sep 15
I know Alex for over 10 years now and I know Ilva very well as well. They do put all the positive energy into what they do and stay highly committed to their hight ethical values. Growing business is not easy and for the last 3 years I have seen they have been doing exceptionally well helping Tenants and Landlords to find best solutions for their property needs in London. They have also advised me personally on a number of occasions with regards to purchasing and renting my own properties. I definitely rely on their values and services they provide. Kim
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