A rent arrears process for letting agents after the Renters' Rights Act
Ground 8 now needs three months' arrears, so early action matters. A day-by-day rent arrears process for letting agents in England.
Rent arrears used to end, for many landlords, with a Section 21 notice. That route closed in England on 1 May 2026. The mandatory arrears ground, Ground 8, now needs at least three months' rent owed and four weeks' notice.
That makes the first few weeks of arrears the part that matters. An agency that notices a missed payment on day one, talks to the tenant and agrees a plan rarely needs a court. This guide sets out a process you can adopt as it is. Legal points checked against gov.uk on 16 September 2026.
Why early action matters more now
- A landlord cannot rely on Ground 8 until three months are owed, so a slow response means a longer, more expensive problem.
- Tenants in genuine difficulty usually respond better to a quick, calm conversation than to a formal letter weeks later.
- Clean records from day one are what a court, and a landlord, will want to see.
A day-by-day process
| When | Action | Who |
|---|---|---|
| Day 1 after rent is due | Confirm the payment is missing, not just late in the bank feed | Accounts |
| Day 2 | Friendly reminder by text or email with the amount and how to pay | Property manager |
| Day 5 | Phone call: find out why, and when payment will come | Property manager |
| Day 7 | Tell the landlord, with the facts and what the tenant said | Property manager |
| Day 14 | Written arrears letter with a rent statement; offer a payment plan | Property manager |
| Day 21 | Agree and record a payment plan, or escalate | Manager |
| Day 30 onwards | Review against the plan weekly; discuss options with the landlord | Manager |
| 3 months owed | Landlord decides whether to serve Form 3A on Ground 8, with advice | Landlord and agent |
Adjust the days to your agency, but keep the order: check, remind, talk, inform, put it in writing, agree a plan.
Payment plans that work
A payment plan is usually the fastest route to getting the money back. Make it:
- Realistic. Base it on what the tenant can actually pay on top of the ongoing rent.
- Written. Amount, dates, and what happens if a payment is missed.
- Tracked. Check each instalment on the day it is due, not at month end.
- Agreed with the landlord before you offer it.
If the tenant receives Universal Credit and has fallen behind, the landlord can ask the Department for Work and Pensions for the housing element to be paid directly to them. Check the current eligibility rules on gov.uk before promising it.
When arrears reach the possession grounds
If a plan fails, the landlord has two kinds of arrears ground to discuss with you or their solicitor:
- Ground 8: at least three months' rent owed, four weeks' notice, mandatory if the arrears still meet the threshold at the hearing.
- Grounds 10 and 11: some rent owed, or persistent late payment. These are discretionary, so the court decides whether possession is reasonable.
Notice is given on Form 3A. Our guide to ending a tenancy after Section 21 covers the notice, the court forms and the fees.
Records that make or break a case
Whatever happens, keep:
- a rent statement showing every charge and payment, with dates
- copies of every reminder, letter and email
- notes of every call: date, who spoke, what was agreed
- the signed payment plan and a record of each instalment
- the tenancy agreement and proof the deposit was protected
Mistakes to avoid
- Waiting for month end to spot a missed payment.
- Informal promises that nobody wrote down.
- Adding unlawful charges. Late payment fees are restricted under the Tenant Fees Act.
- Serving a notice on the wrong form, or before the arrears meet the threshold.
- Letting a landlord contact the tenant in a way that could amount to harassment.
How Letfold helps
In Letfold, each tenancy has a rent schedule, so arrears show the moment a payment is missed. You can set up payment plans, reconcile a bank statement CSV against expected rent, and match standing orders. Tenants can see what they owe in their own portal, and landlords see their statements in theirs. See how Letfold works for letting agents.
Frequently asked questions
How many months of arrears are needed for Ground 8?
At least three months' rent, with four weeks' notice on Form 3A.
Can I still use Section 21 for rent arrears?
No. Section 21 was abolished in England from 1 May 2026. Arrears cases use Ground 8, or the discretionary Grounds 10 and 11. (A "Ground 8A" for repeated arrears was proposed while the Bill was in Parliament but is not in the Act.)
What should a payment plan include?
The extra amount, the dates, how it will be paid, and what happens if an instalment is missed, agreed with the landlord and confirmed in writing.
Can a landlord charge a late payment fee?
Only within the limits of the Tenant Fees Act. Check the current rules before adding any charge.
Sources
Checked on 16 September 2026:
- Guide to the Renters' Rights Act (gov.uk)
- Repossessing your privately rented property after 1 May 2026 (gov.uk)
- Tenant Fees Act amended by the Renters' Rights Act 2025 (gov.uk)
This article is general information, not legal advice.
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