No landlord wants to deal with rent arrears, but the reality is they can happen even with the most reliable tenants.
Whether it’s due to a change in employment, unexpected bills, or personal circumstances, a disruption in cash flow can be stressful for both parties.
In the post-Renters’ Rights Act market, the rules for managing arrears have changed significantly. With the abolition of Section 21 and the move to a fully periodic system, being proactive and compliant is more important than ever.
Here you’ll find everything you need regarding rent arrears, along with practical steps to protect your rental income.
- What is rent arrears?
- 5 tips for landlords to prevent rent arrears
- Understanding your eviction options for rent arrears
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What is rent arrears?
Rent arrears occur when a tenant misses a payment or pays late. Under the new Assured Periodic Tenancy (APT) framework, even a single day’s delay technically creates arrears.
Since 1st May 2026, Section 21 has been abolished. This means that if arrears build up, you can no longer use a “no-fault” notice to regain possession. You must now rely solely on Section 8, which has been updated with new thresholds and notice periods that you must follow strictly.
5 tips for landlords to prevent rent arrears
While late rent payments are generally low across the UK, you don’t have to just wait and hope for the best.
There are several steps you can take to reduce the chances of rent being paid late or arrears building up during your tenancy without immediately resorting to legal action.
1) Never skip tenant referencing
One of the main reasons tenants fall behind on rent is simply that they can’t comfortably afford it. With affordable housing in short supply in many areas, some tenants might apply for homes that stretch their budgets too thin, often out of necessity.
By ordering a tenant referencing report, you can avoid letting to tenants who may struggle to pay. These reports include an affordability check, which looks at whether a tenant’s income is enough to cover the rent with some financial breathing room. If a tenant doesn’t pass this check, it’s a clear sign you should be cautious about their ability to pay rent on time.
At OpenRent, our comprehensive tenant referencing reports go beyond basic checks, providing detailed information on income, credit history, and past rental behaviour. This helps you make informed decisions and significantly reduce the risk of rent arrears.
2) Use automated rent collection
Not all rent arrears are intentional, as many examples of late payment stem from simple disorganisation or a mismatch in pay cycles.
To prevent this, you should always ask your tenants to set up a standing order from their bank account to yours, ideally scheduled a few days before the rent is due to allow for processing time.
For a more robust solution, OpenRent’s built-in rent collection service automates this entire process by chasing late payments on your behalf and providing a real-time dashboard of all transactions.
Having this clear, digital paper trail is essential in 2026, as the courts now require precise evidence of payment history should you ever need to pursue a claim for arrears.
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3) Keep communications open
Building a positive relationship with your tenant is one of the most effective ways to manage risk under the new periodic tenancy framework.
If a tenant is self-employed or receives government benefits, their income may occasionally fluctuate due to factors beyond their control.
By keeping communication channels open and respectful, your tenant is much more likely to warn you of potential issues before they become serious debts.
The new regulations expect landlords to act reasonably, and in cases where a tenant’s financial hardship is permanent, maintaining a professional dialogue can lead to a mutual surrender of the tenancy.
This allows the tenant to move to a more affordable property without a legal battle, while you remain free to re-let the property quickly to a more suitable applicant.
4) Opt for rent guarantee insurance
While preventative measures are important, having a safety net like Rent Guarantee Insurance (RGI) is now a critical part of a modern landlord’s strategy.
Under the Renters’ Rights Act, the legal process for regaining possession due to arrears can take slightly longer, meaning your rental income could be at risk for several months.
With OpenRent’s RGI, you can submit a claim if your tenant falls behind, covering tenancies with rents up to £3,000 per month.
Our rent guarantee insurance also includes legal expense cover, so you won’t have to worry about legal costs if you need to take action through the courts. Plus, the policy stays active even if you change tenants, as long as the new tenant passes the referencing checks.
While insurance can’t prevent arrears, it acts as a safety net so you can focus on managing your property with confidence.
5) Use a guarantor over prohibited upfront payments
You must remember that the 2026 rules have strictly capped rent in advance at one month, meaning you can no longer mitigate high-risk applications by asking for several months’ rent upfront.
Because of this restriction, using a UK-based guarantor has become one of the most effective ways (alongside thorough referencing and RGI) to secure a tenancy against potential arrears.
A guarantor becomes legally responsible for any unpaid rent, providing an additional layer of financial security that often prompts tenants to pay more reliably.
When a tenant knows that their late payment will directly affect a family member or friend who has signed as their guarantor, they are statistically more likely to prioritise their rent, making this a much more sustainable strategy than requesting prohibited upfront payments.
Reduce the risk of rent arrears by checking affordability, employment status and credit history before the tenancy begins. Start Tenant Referencing
Understanding your eviction options for rent arrears
If your tenant has fallen into serious rent arrears, the legal process for regaining possession has changed significantly following the full implementation of the Renters’ Rights Act on 1st May 2026.
With the abolition of Section 21, you can no longer use a “no-fault” notice to end a tenancy when payments stop. Instead, you must now rely exclusively on a Section 8 notice, which requires you to state a specific legal ground for possession.
Section 8 Ground 8 (mandatory)
For rent arrears, the primary route is Ground 8, but the thresholds have been strengthened to give tenants more time to rectify their situation.
The mandatory threshold for rent arrears has increased from 2 months to 3 months. This means that at the time you serve the notice, and at the time of any subsequent court hearing, the tenant must owe at least three full months of rent. Plus, the notice period you are required to give the tenant before you can apply to the court has been extended from 2 weeks to 4 weeks.
You must also be aware of the “right to cure” rule; if a tenant pays off enough of the debt to bring the total arrears below the 3-month threshold before the court hearing, the judge is no longer legally obligated to grant a possession order.
Section 8 Ground 10 (discretionary)
While Ground 8 remains a mandatory ground for possession if the 3-month threshold is met, you can also cite discretionary grounds, such as Ground 10 for any amount of arrears or Ground 11 for persistent late payment. In these cases, the court will decide whether it’s reasonable to grant an eviction based on the specific circumstances.
To ensure your notice is valid in 2026, you must also be vigilant about your administrative compliance. If you have failed to register the property on the Private Rented Sector Database (once it goes live) or have not provided the tenant with a valid Gas Safety Certificate and EPC, your attempt to regain possession could be blocked or challenged in court.