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You are here: Home / Managing a Tenancy * / NEW Tenant in Rent Arrears Guide - / Rent Arrears Letters
  • NEW Tenant in Rent Arrears Guide -
  • Rent Arrears Check List
  • Accelerated Bailiff Application Rent Arrears
  • Rent Arrears Letters
  • Benefits Claimant Council and Legal Advice
  • Rent Arrears Negotiation Hints & Tips +
  • Index of rent related matters
  • Working with Guarantors
  • Check if your Tenant is Bankrupt or subject to Debt Relief Order.
  • Suspension, overpayments and repayment of LHA Housing Benefits
  • Inspections & Access *
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  • How to Increase the rent - Two months Notice
  • Rolling Onwards Tenancy *
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  • Tips for Landlords: Working Successfully With Your Letting Agent

Rent Arrears Letters

PIMS Rent Arrears Letter Pack

From first missed payment to pre-court demand — built to protect your position and prepare for possession if required.

Download Full Arrears Letter Pack

Rent arrears are not just a money problem.

They are an evidence problem, a timing problem and often a compliance problem.

PIMS view is simple: your letters are your audit trail.

If the case reaches court, your success will depend on whether you can show:

  • you acted early,
  • you acted reasonably,
  • you gave the tenant opportunity to pay,
  • and you built a clear, consistent paper trail.
PIMS Insight: Most landlords lose control not because they are wrong — but because they have no written evidence of what actually happened.

The PIMS Arrears Letter System

This is a structured escalation process. Each letter builds your position and prepares for enforcement if required.

  • Step 1: First missed payment letter
  • Step 2: Second arrears warning
  • Step 3: Third escalation letter
  • Step 4: Section 8 Notice (Form 3A)
  • Step 5: Pre-court formal demand
PIMS Tip: This is not about sending letters — it is about building a case file the court can trust.

Legal Requirements You Must Not Miss

  • You must provide a statement of account to the tenant
  • All rent demands must comply with Section 47 Landlord & Tenant Act
  • Letters form part of CPR Part 55 possession process
  • You must show the tenant had opportunity to remedy arrears
PIMS Warning: Failing to send arrears letters can result in legal costs being awarded against you — even if the tenant owes rent.

Guarantor Strategy — Your Strongest Leverage

If there is a guarantor, you should involve them early.

  • Notify guarantor of arrears immediately
  • Send formal demand letters
  • Keep them informed of escalation

→ View Guarantor Guidance

PIMS Insight: Tenants may ignore you. Guarantors rarely ignore financial exposure.

Universal Credit and Direct Rent Payment

The practical rule

Where the tenant receives Universal Credit and is not paying rent, landlords should consider whether a direct rent payment or arrears deduction request may help protect cash flow.

When to consider this

  • The tenant is on Universal Credit
  • Rent is not being paid to the landlord
  • Arrears are growing
  • The landlord needs a cash-flow protection route alongside arrears control

Real consequences

Universal Credit direct-payment action may reduce ongoing loss, but it is not a substitute for arrears letters, rent schedule control, inspection records or Section 8 preparation where possession later becomes necessary.

Useful links

  • GOV.UK direct rent payment / arrears deduction
  • PIMS benefits claimant arrears guide
PIMS Tip: Direct rent payment is Plan B cash-flow protection. It does not replace possession strategy.

When to Move to Section 8

Only escalate once:

  • letters have been issued
  • arrears are evidenced
  • tenant has failed to respond

→ Use PIMS Section 8 Notice (Form 3A)

PIMS Legal Reality: A Section 8 Notice is not the start of your case — it is the result of the work you have already done.

Preparing for Court — Before You Issue

  • Full rent schedule (accurate)
  • Copies of all arrears letters
  • Service records
  • Inspection and repair records
PIMS Insight: By the time you issue a claim, your bundle should already exist.

Final Reality Check

People like living rent free.

Tenants may be advised to delay, defend and counterclaim.

Your protection is not speed — it is preparation.

“By failing to prepare, you are preparing to fail.”

Join PIMS for Full Arrears System & Support

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Fit for Habitation|March 2019 The ACT is intended to define minimum standards a rental property MUST be and makes a clearer pathway way for Tenants to be compensated|https://www.pims.co.uk/fit_for_habitation_act_march_2019/ Guarantor|The person who provides a guarantee and promises to make payment good should the person responsible for the agreement fail|http://www.pims.co.uk/guarantors/ MEES|The Minimum Energy Efficiency Standard (MEES) Landlords are charged with the requirement to bring their rental property to a minimum EPC rating of E. Property with F and G rating will effectively be banned from the rental market April 2018 |http://www.pims.co.uk/epc/ Section 11|Section 11 of the Landlord and Tenant Act 1985 places an obligation on the landlord to maintain the structure and exterior of the property, including installations for the supply of water, gas and electricity, heating systems, drainage and sanitary appliances|http://www.pims.co.uk/landlord-section-11-repairs/ serving date|This date is the date deemed received at the property - as an example if posted allow for posting days|/serving-notice-on-a-tenant-delivery-days/ Tenancy Application|The objective of vetting is to empower yourself so you can make an informed decision as to the calibre of the prospective person. Making your decision on facts and figures is invaluable and this is why you should always take references. The application form also provides you with permission to perform credits. This form details all the information you should ever require deal with most eventualities including absconding tenants|http://www.pims.co.uk/doc/57/ Tenant Fees|From June 2019 where renting properties in England gone are the days of charging for admin, letting fees, vetting, references, inventory, check in, check out, cleaning, pet insurance or ANY other fee that is not explicitly permitted within the legislation. |https://www.pims.co.uk/ban_letting_fees_act_2019/