Writing a rent arrears letter requires a careful balance of professionalism and assertiveness to effectively communicate with a tenant who is behind on their rent payments.
Start by including the date and both your and the tenant’s contact information at the top of the letter. Clearly state the purpose of the letter and provide a concise but detailed account of the outstanding rent, specifying the amount owed and the period it covers.
Be sure to reference the terms of the lease agreement, including any late fees or penalties. Express understanding and encourage open communication to address any underlying issues causing the arrears.
Clearly outline the steps the tenant should take to remedy the situation, including the deadline for payment and any consequences for further non-compliance.
End the letter on a firm yet polite note, reinforcing the importance of timely resolution and emphasizing the consequences of continued non-payment. Always maintain a professional tone to preserve the landlord-tenant relationship while addressing the financial matter at hand.
Does it matter if the tenancy is fixed-term when dealing with rent arrears?
Yes, it does matter if the tenancy is fixed-term when dealing with rent arrears. In a fixed-term tenancy, both the landlord and tenant are bound by the terms of the agreement for the duration of the fixed period. If a tenant falls into arrears during a fixed-term tenancy, the landlord cannot simply end the tenancy early without following proper legal procedures.
For example, in the UK, even if the tenancy is fixed-term, a landlord can seek to recover unpaid rent through the courts or serve a notice seeking possession under certain conditions, such as a Section 8 notice. However, the landlord cannot evict the tenant without a court order during the fixed term unless there is a break clause in the tenancy agreement that allows for early termination under specific conditions, such as non-payment of rent.
Furthermore, while the tenant is still in the fixed term, they are liable for rent until the end of the period unless the tenancy is legally terminated or they come to a mutual agreement with the landlord.
Example Rent Arrears Tenancy Letter Template
When do rent arrears occur
Rent arrears occur when tenants fall behind on their rental payments, which can be a challenging issue for both landlords and tenants. There are several reasons why rent arrears may occur, including financial difficulties, job loss, illness or injury, unexpected expenses, or changes in personal circumstances.
For example, a tenant may have lost their job or experienced a reduction in income, making it difficult to keep up with rent payments. Alternatively, unexpected expenses such as medical bills or car repairs may put a strain on a tenant’s finances, making it harder to afford rent.
Landlords may also contribute to rent arrears by failing to maintain the property or by being unresponsive to tenant complaints, which can lead to tenants withholding rent. Whatever the cause, landlords and tenants need to communicate and work together to find a solution that works for both parties, such as setting up a payment plan or seeking financial assistance.
Landlord Letter To Tenant Late Payment – Rent Arrears Letter
Here we have two rent arrears letter templates, which you can download completely free, to help you communicate with tenants who fail to pay their rent on time.
All you have to do is click on the links below to download them, personalise them for your tenant and put them in the post:
Download Late Rent Chase Up Letter 1
Deal with non-payment of rent issues immediately. If rent is more than 3 days overdue, then send out this first letter. (Always take into account bank holidays, Christmas and Easter breaks because banks do not process any payments at these times).
The final sentence of the letter talks about imposing an administration charge for late payment. You can only include this if you have given details of the administration charge in your tenancy agreement.
Download Late Rent Chase Up Letter 2
This letter is sent out only if you have received no response 4 days after you sent out the first rent chase up letter. This clearly gets across your no-nonsense approach to resolving this situation quickly and most tenants will respond to this letter.
All content on this form and other forms for landlords published by Property Division are provided “as is”, with no guarantees of completeness, accuracy or timeliness, and without representations, warranties or other contractual terms of any kind, express or implied. Property Division does not represent or warrant that this letter or other material supplied by Property Division will be accurate, current, uninterrupted, error-free or omission-free.
TIP: Creating and agreeing to an inventory with your tenant at the start of the tenancy could prove essential in a dispute. You can get our free landlord inventory template here.