Investing in rental properties is a great way to diversify your portfolio and provide a reliable income. It also has the potential to be quite profitable. But what do you do when one of your tenants stops paying rent?
It’s important to understand that this is a common issue for landlords. The vast majority of landlords will eventually have to deal with tenants who don’t pay rent on time. Tenant not paying rent is one of the biggest risks associated with being a landlord. UK law gives landlords a few options when it comes to collecting rent. You can either:
- Send a written demand for payment
When your tenant stops paying rent, you will need to send them a letter asking for the money that is owed. This letter should state the amount of rent that is due and when it’s due, as well as any other fees they owe you (e.g., late fees). It’s a good idea to keep a copy of this letter for your records. If a tenant owes you more than 3 months’ worth of unpaid rent, you must also include more information in your letter. You need to include additional evidence with your demand letters, such as copies of receipts or bills for any unpaid rent, utility, or repair charges.
- Start court proceedings
If your tenant doesn’t pay the rent after you’ve sent them a written demand, you can take them to court. This is known as “starting proceedings.” You’ll need to fill out an “Application for a Possession Order” and submit it to your local court. Once you’ve done this, the court will set a hearing date. At the hearing, both you and your tenant will have a chance to present your case. If the court decides in your favor, they’ll issue a “Possession Order.” This means that your tenant will have to leave the property within a certain timeframe
- Apply to have the tenant evicted
If your tenant isn’t paying rent and you’ve tried other methods to resolve the issue, you may need to start eviction proceedings. This is a legal process that can be complicated, so it’s important to understand your rights and responsibilities as a landlord before starting the process.
You will have to give them the notice to vacate. This notice must be in writing and must state the reasons for the eviction, as well as the date by which the tenant must vacate the property. Once the notice to vacate has been served, the tenant has a certain number of days to either pay the rent owed or move out of the property.
If the tenant doesn’t comply with the notice to vacate, you can then file an eviction lawsuit with your local court. This lawsuit will be scheduled for a hearing, at which point you’ll need to present your evidence to the judge. If the judge rules in your favor, they will issue an eviction order, which gives the tenant a certain amount of time to vacate the property.
- Hire a bailiff to evict the tenant
If your tenant still hasn’t vacated the property after you’ve obtained an eviction order from the court, you can hire a bailiff to remove them from the premises. This is often the last resort for landlords, as it can be costly and time-consuming.
The first step in hiring a bailiff is to obtain a “Writ of Possession” from the court. This writ will give the bailiff the authority to evict the tenant from your property. Once the bailiff has evicted the tenant, they will change the locks on the property and post a notice informing the tenant that they are no longer allowed on the premises.
While it’s not an easy process, evicting a tenant is sometimes necessary to protect your rights as a landlord. By familiarizing yourself with the process and knowing your options, you can ensure that the eviction is handled smoothly and efficiently.