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	Non or Late Payment of Rent
	[Avoiding Non-Payment of Rent] [Recovery Process] [Points to Remember]

The problem of rent arrears should be addressed as soon as it rears its ugly head. You need to take the course of action that will best help you achieve a positive outcome - either the payment of the arrears or the fast repossession of the property. To help you achieve this in the most effective way possible, it is worth speaking to our managing agents, and if necessary a solicitor.

There are three main things that B.T.C residential will do to help minimise the risk of non-payment of rent:

- Use standing orders or direct debits for rent payments, as the inconvenience of shutting them down is a disincentive to tenants who are thinking of dodging rent..
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- Request that the tenant use a guarantor if the tenant's ability to pay the rent looks in any way doubtful. The guarantor will usually be someone fairly close to the tenant, and most people would think twice about forcibly passing on liabilities to a family member, friend or other acquaintance.

- We would generally make sure that we include a non-payment of rent clause in the tenancy agreement. This should make provision for a charge if the tenant fails to pay a rent instalment within 7 days of the due date. It should also include details of charges that will be incurred for subsequent reminder letters whilst the rent remains in arrears.

Here is the process that we generally use to recover rent that is overdue :

- 7 Days After Rent is Due: Letter sent out informing tenant of amount and due date of arrears. This letter carries a charge of £30 and advises the tenant that there will be a charge of £20 for any subsequent letters that are required to be sent whilst the tenant remains in arrears.

-14 Days After Rent is Due: A further letter is sent to the tenant at a charge of £20. This letter threatens legal proceedings and outlines the repossession proceedings. At the same time, a separate letter is sent to the guarantor (if there is one) to remind them of their obligations and responsibilities and requesting that they encourage the tenant to pay the overdue rent.

- 21 Days After Rent is Due: A visit is made to the property in an attempt to meet with the tenants and persuade them to pay the overdue rent. If this is unsuccessful, then a further letter will be sent to the tenant advising them that this is the last opportunity to pay the rent before possession proceedings are instigated.

- 28 Days After Rent is Due: Possession proceedings are usually considered at this point, though a mandatory possession order is unlikely to be granted until rent has been in arrears for two months.

- You should take legal advice before constructing similar letters yourself.

- Often, non payment of rent is due to administrative errors in the setting up of standing orders. This can take up to a week to resolve, and it is advisable to show goodwill when dealing with such instances.

- Most tenancies are operated under joint and several liability, meaning that even if only one tenant is defaulting, it should be treated as though all tenants are. You are legally entitled to take action against all of the other tenants to recover money from one defaulting tenant.

- On some occasions, tenants refuse to pay due to unhappiness with the condition of the property. By law, tenants may only refuse to pay the rent or reduce payments where the problem is a safety or health matter, such as those concerning: Structural repairs, draining, gutters, external pipes, water, gas, electricity, sanitation, heating and hot water.