‘Rent Arrears’... What does it actually mean and how to deal with them?

Tenants | Thu 22 Oct 20

‘Arrears’ is another way of saying you’ve fallen behind on your rent payments and you owe your landlord money as a result. If you’ve had a letter or notice from your landlord saying you’re in arrears, it’s important you address the problem and don’t ignore it. Arrears won’t go away on their own, but by tackling the debt head-on and involving your landlord, you put yourself in the strongest position to resolve it in a way that works for everyone involved.

Address unpaid rent quickly

Some tenancy contracts ask that you simply clear any unpaid rent before you leave to avoid losing your deposit or paying a fee if you have a Zero Deposit™ Guarantee. Other contracts will tell you that you have to pay interest for late rent, so it’s important you pay on time so the situation doesn’t get even more costly.

If you’re behind on your rent, it can be stressful. But it’s important to address the problem right away. Ignoring it can make the problem spiral, affect your credit rating and you could be evicted or taken to court.

Speak to your landlord and explain why your rent is late

Telling your landlord why you’ve fallen behind on rent might help, for example if you’ve lost your job or been ill. They might be able to set up a repayment plan with you. You’ll still have to pay everything you owe, but in smaller chunks that can make the amount feel more manageable than if you had to pay it in full. For example, if you owe £500 you could pay your landlord an extra £100 a month for the next five months to clear it. Be careful you don’t agree to repay more than you can afford and split the amount over more months if you need to.

Make sure you understand what you owe

If you live with other people, the arrears might not all be your responsibility. If you all signed a separate tenancy, each of you will only be responsible for paying your portion so you won’t have to pay anything they personally owe. If you signed a ‘joint tenancy’ though, you’re all responsible together to pay. That means if someone can’t cover their portion, you’ll need to pay it.

Sometimes it’s possible for there to be a mix-up with a previous tenant. So always check your bank statements and the dates being questioned. It’s possible you’ve paid, but your housemate hasn’t or that someone who lived in the house before you was late and it’s only just been noticed. If you haven’t got a record of what you’ve paid, ask your landlord for a statement.

It’s always a good idea to keep your own records so if you are ever challenged on what you owe, you have the right information.

Apply for financial help if you need it

If you’re regularly struggling to pay your rent because you lost your job or earn less than you did, you might be able to get help from the government like Universal Credit. Even students can apply under some situations. Otherwise you can seek advice from organisations like the Money Advice Service if you need a little guidance.