Many potential landlords hesitate to enter the rental market because they’re worried about problem tenants, property damage and unpaid rent, while others expect easy profits and hassle-free management. The reality? It lies somewhere in between.
Think of it like a bell curve. At one end, landlords face constant issues, while at the other, they enjoy smooth, profitable tenancies. The key to being on the successful side isn’t just about the property itself – it’s about managing relationships with tenants.
It’s important to remember that letting a property is a business transaction, and tenants are paying customers. How landlords treat them can make all the difference, especially when challenges arise. Most landlords and letting agents don’t take the time to build good relationships with their tenants, but that’s what sets us apart at Purseglove. We focus on building strong tenant relationships to create better outcomes for everyone involved.
In this blog, we’ll explore what landlords can do when things don’t go to plan, and see how, with the right approach, landlords can protect their investments right from the start.
The foundation for a positive tenancy
A strong landlord-tenant relationship starts before a tenant even moves in, and the way a property is marketed and maintained plays a big role in attracting the right people.
A well-presented, clean and modern home is far more likely to attract tenants who will treat it with care and respect. On the other hand, if a property looks neglected in photos or isn’t well-maintained, it sends a clear message: if the landlord doesn’t care, why should the tenant?
First impressions matter, but so does setting the right tone from day one. A smooth, professional application process, thorough referencing, and ensuring all compliance paperwork is in place can help lay the groundwork for a hassle-free tenancy. When tenants feel valued and everything is handled properly from the start, they’re far more likely to respect the property and communicate openly if issues arise.
Many landlords and letting agents focus on filling vacancies quickly, but a rushed or poorly managed process can lead to bigger problems down the line. Taking the time to get it right from the beginning can make all the difference.
Understanding tenant circumstances
Even with thorough referencing, life can be unpredictable. A tenant who was financially stable at the start of a tenancy might suddenly face difficulties – like job loss, illness or a personal crisis – and this can affect their ability to pay rent.
In these situations, communication is key. Tenants who have a good relationship with their landlord, agent or property manager are far more likely to be upfront about any struggles, giving everyone a better chance of finding a way forward. But when there’s no trust or connection, tenants may avoid contact altogether, and in those cases, the first sign of trouble is the first missed rent payment.
How a landlord responds at this stage can make a huge difference. Reacting too harshly can escalate the problem, but taking a calm, professional approach could help resolve the issue before it gets out of hand. Landlords who try to understand their tenants’ circumstances are more likely to find a positive way forward, such as setting up a payment plan or making informed decisions about next steps.
The right way to react to non-payment of rent
When rent is overdue, many landlords and agents immediately send formal letters demanding payment or outlining the consequences of non-payment. While this approach may seem firm and efficient, it can often backfire – especially if the tenant is already struggling! A tenant who feels threatened or overwhelmed may disengage entirely, which makes finding a resolution much more difficult.
At Purseglove, we’ve found that the most effective first step is simply to check in and show concern for the tenant’s wellbeing. A polite, professional message asking if everything is okay and offering to discuss any difficulties can go a long way and make the tenant feel heard. In many cases, this encourages tenants to open up and propose a solution, such as a short-term payment plan to catch up on arrears.
If communication is ignored, the next step should be a welfare check. Visiting the property with proper notice isn’t just about collecting rent – it’s an opportunity to assess the situation and ensure the tenant is safe. In some cases, tenants may be struggling more than they let on, and a face-to-face conversation can help find a resolution before things escalate further.
Of course, if a tenant refuses to engage and arrears continue to build, it’s time to take further action. However, by approaching the situation with professionalism and a willingness to work with tenants, landlords might be able to prevent disputes, reduce financial losses, and avoid unnecessary legal proceedings.
What to do when a tenant stops communicating
If a tenant isn’t engaging at all, landlords need to know their legal options and next steps. While patience and open communication are important, there comes a point where formal action is the only way forward.
Under current rules, tenants must be at least eight weeks behind on rent before a landlord can start the eviction process using a Section 8 notice. This process allows landlords to seek possession due to unpaid rent, though tenants may still be given a chance to catch up on payments. Another option is a Section 21 notice, which doesn’t require specific grounds for eviction – but be aware that the upcoming rental reforms will change how this works.
For tenants who have gone completely silent, receiving a formal notice can sometimes prompt a response, as it makes the consequences of non-payment clear. A polite but firm letter explaining that all other options have been exhausted can encourage engagement, whereas a more aggressive approach might only push them further away.
How this notice is issued also matters, as it must be done in a legally compliant way. There are specific legal requirements depending on the method used (e.g. whether it’s delivered digitally, by post, or by hand) and if it isn’t served correctly, the notice could be challenged or deemed invalid, which could delay further action. We can guide landlords through this process to ensure notices are delivered correctly and effectively.
It’s also important for landlords to document all communication attempts, payment history and legal notices. If the situation escalates, this record will be essential for court proceedings.
The legal process for recovering possession
Taking legal action to recover possession of a property can be time-consuming and expensive, so it’s always best to treat this option as a last resort. Even with a Section 8 notice, courts often expect landlords to provide additional grounds beyond unpaid rent, and tenants can be given quite a bit of time to get their affairs in order before an eviction order is granted.
Another challenge is that tenants can delay proceedings by making small payments to reduce arrears below the required threshold. This can prolong the process significantly, leaving landlords in a difficult position.
With rent reform and the planned abolition of Section 21 notices on the horizon, evicting tenants over unpaid rent is likely to become even more complicated and time-consuming. That’s why it’s more important than ever for landlords to take a proactive approach by choosing the right tenants, being open and understanding if problems do arise, and tackling problems with humanity early on. Prevention is always the best option.
Dealing with property damage and rent arrears
If you’re faced with property damage or unpaid rent once a tenant moves out, it’s important to assess the situation carefully before deciding how to claim against the deposit. If the outstanding debts go beyond what the deposit covers, landlords have the option of pursuing a County Court Judgment (CCJ) through Money Claim Online. This can impact the tenant’s credit score, making it harder for them to rent in the future or get loans.
Beyond a CCJ, there are other legal options, such as using bailiffs to recover the debt or applying for an attachment of earnings order, which deducts money directly from the tenant’s wages. However, it’s important to be aware that these routes come with extra costs and aren’t always successful.
When is it time to move on?
Even after landlords have exhausted all the options, some tenants have no financial means to repay their debts. When this happens, landlords need to carefully consider whether pursuing legal action is worth the time, cost and effort involved. Court proceedings can be expensive and lengthy, and if the tenant has no assets or income, recovering the unpaid rent may be impossible.
Sometimes, the most practical approach is to accept the situation, learn from the experience, and focus on moving forward with new tenants. While it’s understandably frustrating, the key is to take steps to prevent similar issues from happening in the future – starting with a strong approach to tenant selection and management. A well-referenced, reliable tenant is far more valuable in the long run than chasing debts that may never be recovered.
The importance of robust tenant referencing
Thorough tenant referencing is the first and most effective line of defense against problematic tenants, so landlords should always check a tenant’s financial stability, rental history, and employment status before they move in to highlight potential risks before they turn into problems.
If there are any concerns about a tenant’s ability to meet rental payments (such as having a lower income or limited rental history, or being self-employed), requiring a guarantor provides an extra layer of protection. Guarantors are legally responsible for the rent if the tenant is unable to pay, and this reduces the financial risk for landlords.
At Purseglove Property, we take tenant referencing seriously and have developed our own in-house tenant referencing system to ensure a thorough and reliable process. Thanks to these strong procedures, we’re proud to say that in over 10 years of business, we’ve never needed to commence court proceedings to gain possession of a property. While unexpected changes in a tenant’s circumstances can still occur, we take a proactive approach to managing these situations, working with tenants early on to find solutions.
A proactive, relationship-driven approach to property management
At Purseglove Property, we believe the best way to prevent serious tenant issues is by maintaining good communication with tenants, setting clear expectations, and handling problems early on to avoid rent arrears and disputes. And when difficulties do arise, it’s important to stay calm, informed and strategic.
If you need support with tenant referencing, managing arrears, or handling a rental issue in Nottinghamshire, we can help. Get in touch for expert guidance and practical solutions to keep your rental business running smoothly!