What to do if you’ve missed rent
When a tenant falls into rental arrears, it’s important for both the tenant and landlord to deal with the issue as soon as possible. Tenants should talk to their landlords if they’re likely to miss or have already missed a payment. They’re not obliged to, but landlords might be able to offer a repayment plan until you get your finances under control.
If you offered to temporarily pay part of your rent and your landlord doesn’t agree to it, you should still pay that rather than not paying anything. This will put you in a better position if your landlord decides to take legal action.
If you can’t repay your rental arrears quickly, landlords can take legal action to recover the owed money. This might include beginning the legal proceedings to evict you. However, these steps can be stressful and costly for both parties, so resolving rental arrears as quickly as possible is best for everyone.
If you’re unsure how to get started tackling the problem or feel unsure at any point in the process, seek tailored support. Organisations such as Citizens Advice, Shelter and StepChange can explain your rights to you and help you plan a way out of rental arrears. They can also help you find out if you’re entitled to benefits which you haven’t claimed.
“If you are in a situation where you are facing rent arrears, or arrears of any kind, you should reach out to an independent debt advice charity like StepChange, who are on hand to support you and talk through your options,” Simon Trevethick, head of communications for StepChange, told The Big Issue.
“As rent arrears is a priority debt, you should always try to agree a repayment plan. You can also contact your local council to see if they offer any discretionary support if you’re struggling to pay your rent. This support varies from council to council. We would also advise you to maintain contact with your landlord and see if there’s anything they can do to support you, such as working with you to agree an affordable repayment plan.”
Ask for breathing space
The Breathing Space initiative is a government scheme which protects you while putting together a plan to pay off your debts. It’s a temporary measure, lasting up to 60 days, and shields you from building up extra interest or being pulled into court action.
You can’t use the Breathing Space scheme if you have been on it in the last 12 months, though this doesn’t apply if you were using the Mental Health Crisis Breathing Space initiative – which is available to people receiving specific types of mental health treatment and lasts longer.
Some types of debts can’t be included in the Breathing Space scheme, such as child maintenance payments, student loans, crisis loans and universal credit advance payments.
To apply for the initiative, you need to receive advice from a debt adviser who, as well as helping you put together a budget and debt payment plan, will go over your circumstances and assess if you’re eligible. If you are, they will send your application to the government’s insolvency service.
Remember that Breathing Space gives you a break from debt pressures while you get on top of your finances, but does not write off what you owe.
The scheme is available to people in England and Wales, while those in Scotland can apply for a debt moratorium which is similar.
Be clear on what you owe
It’s important to go through records of your rent payments, like a rent book or bank statements, to make sure that what you are still to pay matches what your landlord says you owe.
Check that you aren’t being held liable for all arrears despite part of it being owed by someone else, which could be the case if you share with someone or if you took over someone’s tenancy.
Work out what you can afford to pay back
As a priority debt, addressing rental arrears should be at the top of your to-do list. That means working out a feasible way to pay this month’s rent to avoid falling deeper into debt, if possible, and deciding how much on top of your standard rent you might be able to afford to start paying back what you owe. But all of that has to come after creating a detailed budget.
List all your sources of income, which might include wages, benefits and any other earnings. Then write a detailed list of all expenses, prioritising essentials like food, utilities and transport. You can note down both income and outgoings on a weekly or monthly basis, depending on how often you pay rent.
Subtract your outgoing costs from your total income to determine what’s left for rent payments. It’s important to be realistic and honest about spending habits, or you could end up committed to a repayment plan which you can’t afford. A debt adviser can help you come up with the right figures and plan a route out of rental arrears.
“You can either do this using a budgeting tool, or through a debt advice organisation like StepChange,” said Trevethick.
“Once you have assessed how much of a budget surplus you have at the end of the month after all your bills and everyday expenses, you can allocate this to repaying your debts. If you find yourself in a negative budget, meaning you are spending more on essentials than you earn, then seek further support.”
People struggling to make ends meet have likely already considered and acted on the extra costs they could cut. But it’s always worth keeping in mind non-essentials such as subscription services which could be cancelled. Check you’re not paying too much for things like council tax, which can be discounted depending on your circumstances, or energy and water bills which can often be adjusted for those on low incomes.
Where can I get help with rent arrears?
As well as working on a budget yourself, there are a number of organisations which offer advice and emergency financial support to those who have fallen into rent debt.
You might consider contacting:
- Citizens Advice for free, confidential advice on a number of issues, including getting help with rental arrears and negotiating with your landlord
- Shelter for expert advice on housing problems and what your rights are as a tenant
- Your local council for housing support or Discretionary Housing Payments
- StepChange, a debt charity offering free advice
- National Debtline for confidential support and free tools if you’re addressing problem debt such as rental arrears
- Turn2us, an anti-poverty charity helping people access benefits, grants and other support. You can also use their online tool to find an adviser at an organisation local to you
Grants to clear rent arrears
If you need help with rental arrears, you could apply for a discretionary housing payment (DHP). These are one-off payments from your local council which you don’t need to pay back. They are only offered to people who already claim universal credit or housing benefit.
Your claim will be assessed based on your circumstances, such as your income and how you could be affected if denied a DHP, so it’s important to give the council as much information as possible.
Visit your local authority’s website for details on eligibility and how to apply.
Some charities also offer one-off grants to those stuck in debt or struggling to pay for necessities. If you need to get help with rental arrears, try using an online grants search tool.
Could I be evicted for being in arrears?
A landlord can evict a tenant – or ‘seek possession’ – for being in arrears, but there are specific processes they have to follow for the eviction to be legal. That’s why it’s crucial to hold onto all paperwork to support your case.
Depending on your type of tenancy, your landlord could follow different types of procedures when they decide to evict you. For rental arrears, this will most commonly involve a Section 8 notice. Once you have been served with this and if your arrears remain unpaid, a landlord can ask the court for a possession order.
They must still allow you the correct notice period and give you the correct paperwork. Speak to an adviser if you’re unclear on what your rights are.
“Your landlord can’t serve you with an eviction notice if it’s less than four months since the tenancy started,” said Trevethick, “if you live in a house in multiple occupation [HMO] without a licence, or if your deposit isn’t protected by the deposit protection scheme.
“Your landlord must give you two months’ notice to vacate the property if they serve you with a Section 21 or Section 8 eviction notice.”
Tenants have the right to challenge an eviction in court, particularly if the notice is incorrect or if you can prove that the amount of arrears is incorrect.
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