"My tenant hasn’t paid rent for 3 months!"
That’s what a landlord client said to me last week, panicking about what to do next.
You might think this situation is rare – but unfortunately, it’s something I hear more and more from landlords and letting agents these days.
It’s easy to jump to conclusions and think tenants aren’t paying because they’re being irresponsible. But the reality is often very different. In most cases, tenants don’t pay because they can’t pay.
This landlord wasn’t alone.
A recent survey of 1,000 families on Universal Credit revealed the stark reality many tenants face:
• Only 6% of families on Universal Credit had no rental arrears.
• 43% were cutting back on food just to pay rent.
• 46% were sacrificing spending on heating to keep up with payments.
• Despite these sacrifices, 35% frequently and persistently underpaid their rent.
When you look at these numbers, it’s clear that this isn’t about irresponsibility—it’s about survival.
In this particular case, the tenant had been through a nightmare. After a life-changing medical diagnosis, they began radiotherapy, which made it impossible to work consistently. As a result, their income dropped, and they couldn’t keep up with rent.
On the other hand, the landlord was also in a tough spot. Their mortgage payments were due, and the lender wasn’t cutting them any slack. This created a shared burden, with both tenant and landlord losing sleep over what the future might hold.
But there is hope!
Here’s what we did to turn things around and how you can do the same:
✅ Step 1: Understand the tenant’s situationWe took the time to sit down with the tenant and review their income and expenses. Understanding the full picture is crucial. In this case, we discovered that while the tenant had some income through benefits, it wasn’t enough to cover their rent or address the growing arrears.
What you can do: Sit down with your tenant and seek to understand why they’ve fallen into arrears. Get the full picture so you can make an informed decision on what to do next.
✅ Step 2: Apply for a Discretionary Housing Payment (DHP)Next, we guided the tenant through a DHP application. This process involved:
1. Explaining why the tenant fell into arrears (medical treatment, in this case).
2. Providing evidence to show the circumstances were unavoidable.
3. Demonstrating how the DHP would help them get back on track.
We worked closely with the tenant to gather all the necessary documents and ensured their application was error-free.
What you can do: To find the application form for a ‘DHP’ go on your councils website and search ‘Discretionary Housing Payment’ or go on Google ‘Council name + DHP’. You should then be re-directed to the correct web page and follow the instructions to make your application.
✅ Step 3: Follow up with the councilOnce the application was submitted, we stayed on top of it. Following up regularly with the council is key to ensuring progress and addressing any questions or delays.
What you can do: Ask the tenant to sign a consent letter granting you permission to speak on their behalf. Then follow up with the relevant council department with the consent letter attached. Keep following up for regular updates on how the case is going.
The result?The council approved the DHP application, covering the tenant’s £7,000 in rental arrears.
The tenant got a fresh start to rebuild their life, and the landlord could finally breathe knowing their mortgage payments were safe.
The takeaway?
If you’re a landlord or tenant facing a similar challenge, don’t wait for things to spiral out of control. Solutions like these exist—you just need to take the first step. And remember, you don’t have to do it alone—my team is here to help.
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