What Can I do If My Tenant Misses Rent?
What to Do When a Tenant Misses a Rent Payment
Option One - Send a notice to remedy - 14 day breach notice
If your tenant has missed a rent payment and is less than 21 days in arrears, it’s essential to take prompt action to address the situation. The recommended first step is to issue a 14-day breach notice, requesting that the overdue rent be paid. This formal notice can help reinforce the importance of staying on top of rent payments while also giving your tenant a clear deadline to catch up.
However, it's also crucial to maintain open communication and work with your tenant to develop a strategy for catching up on the missed payment. In some cases, setting up a payment plan may be the best solution. You can even formalise this agreement through Tenancy Services using a FastTrack Resolution application, which helps streamline the process.
To better understand the process and what a notice to remedy might involve, you can refer to this Tenancy Services link.
Option Two : Applying for Tenancy Termination
If your tenant’s rent arrears extend beyond 21 days, you have the option to apply to the Tenancy Tribunal for termination under Section 55(a) of the Residential Tenancies Act (RTA). This section allows landlords to seek termination when tenants have not paid rent for 21 days or more. Additionally, if a tenant fails to remedy overdue rent after you’ve issued a notice to remedy, you can also apply for termination through Tenancy Services.
Taking this step can help protect your interests as a landlord while ensuring the tenancy obligations are upheld.
Option 3: Managing Rent Arrears in a Periodic Tenancy
For landlords dealing with rent arrears under a periodic tenancy, there’s an additional provision in the Residential Tenancies Act (RTA) that you can utilise. Introduced in February 2021, Section 55(1)(aa) offers a structured approach to handling arrears in these types of tenancies.
If your tenant is five working days in arrears, you can serve a notice demanding payment. It’s important to note that these must be working days, so weekends and public holidays don’t count. This notice must include key details such as the overdue amount, the dates for which the rent is overdue, the tenant’s right to challenge the notice by applying to the Tenancy Tribunal, and whether this is the first, second, or third notice within a 90-day period.
If a tenant receives three such notices within 90 days, you may then apply to the Tenancy Tribunal for termination of the tenancy. This provision gives landlords a clear path forward when managing ongoing rent issues in a periodic tenancy.