Unpaid rent can be a major concern for both landlords and tenants, especially when a tenancy ends with outstanding payments still due. If you're a landlord trying to recover unpaid rent or a tenant unsure of your responsibilities, understanding the legal position is essential. In this guide, we’ll explore what rent arrears are, whether tenants can owe rent after moving out, and what steps landlords can take to address the issue.
What are rent arrears?
Rent arrears happen when a tenant fails to pay their rent as agreed in the tenancy agreement. This may involve partial payments, late payments, or a complete lack of payment. Regardless of personal circumstances, tenants are legally obligated to pay rent on time. Unpaid rent can leave landlords unable to cover mortgage payments, property maintenance, or other expenses.
Can a tenant owe rent arrears after moving out?
Yes, if a tenant leaves a property with unpaid rent, they are still legally responsible for paying the arrears. The debt doesn’t disappear when the tenancy ends - it remains valid and enforceable, meaning the landlord can still take action to recover it.
What are the consequences for tenants?
Unpaid rent can have serious financial and legal consequences for tenants, including:
Damage to their credit score: If the landlord takes legal action and secures a County Court Judgment (CCJ), it can negatively impact the tenant’s credit history for six years, making it harder to get loans, mortgages, or credit cards.
Legal action from the landlord: Landlords can pursue unpaid rent through the small claims court or hire a debt collection agency, which could lead to additional fees and costs for the tenant.
Difficulty renting in the future: When applying for a new rental, landlords often check references and may refuse to rent to someone with a history of unpaid arrears. A CCJ could also show up in tenant referencing checks, making it harder to secure a new home.
What options does a landlord have?
If a tenant moves out owing rent, landlords still have several options to recover the unpaid amount. The best approach depends on how much is owed and whether the tenant is willing to cooperate.
1. Contact the tenant
In many cases, landlords and tenants can resolve rent arrears through direct communication. A polite but firm conversation - either by phone, email, or letter - can encourage tenants to agree on a repayment plan.
💡 Tip: If the tenant is willing to pay but needs time, a written payment agreement with a clear installment plan can help both parties come to a fair resolution.
2. Deduct arrears from the deposit
If the tenant paid a deposit at the start of the tenancy, landlords may be able to use it to cover unpaid rent. However, deposit deductions must follow strict rules:
The deposit must be protected: If the deposit was held in a Deposit Protection Scheme, landlords must provide evidence of rent arrears when making deductions.
The tenant must be informed: Landlords should give a clear breakdown of deductions and an opportunity for the tenant to dispute them if necessary.
If the deposit doesn’t cover the full amount owed, landlords may need to consider further action.
3. Take legal action
If the tenant refuses to pay, landlords have the legal right to recover the debt through the courts. This process usually starts with a formal warning:
Send a letter before action (LBA): This is a formal legal notice warning the tenant that legal action will be taken if they don’t pay. Courts expect landlords to send an LBA before starting proceedings.
Use the small claims court: If the arrears are under £10,000, landlords can file a claim online through the small claims court to recover the debt.
Apply for a County Court Judgment (CCJ): A CCJ legally enforces repayment, impacts the tenant’s credit rating, and can make it harder for them to rent in the future.
💡 Editor's insight: "A letter before action is a crucial step before taking legal action. Courts expect landlords to follow the pre-action protocol, which includes issuing a formal warning before filing a claim. This can also strengthen your case in court if the tenant refuses to pay."
4. Use a debt collection agency
If a tenant ignores legal warnings, landlords can hire a debt collection agency to recover the money. These agencies have experience in chasing unpaid rent, but they charge a fee or commission for their services.
5. Get legal advice
If recovering rent arrears becomes complicated or stressful, landlords can seek professional legal advice. Specialist rent arrears solicitors can:
Assess the best legal route for recovering unpaid rent
Help draft legal documents such as letters before action
Represent landlords in court if needed
💡 Bottom Line: If a tenant moves out owing rent, landlords have multiple options to recover the money. Starting with direct communication is often the best first step, but if that fails, legal action, deposit deductions, or hiring a debt collection agency may be necessary. If you're unsure of your rights, getting expert legal advice can help you navigate the process smoothly.
What if you’re not certain the tenant has moved out?
In some cases, a landlord may not be sure if the tenant has officially vacated the property, leading to confusion over the status of rent arrears.
Key considerations:
Check for notice of termination: If the tenant hasn’t provided notice, they may still be liable for rent payments.
Inspect the property: Ensure the property is empty and the tenant has returned the keys.
Confirm abandonment: If a tenant has left without notice, landlords must follow proper legal procedures to establish abandonment. Taking immediate possession of the property without legal confirmation could lead to claims of illegal eviction.
FAQs
Can landlords pursue rent arrears after a tenant moves out?
Yes, landlords can pursue rent arrears even after the tenancy ends. The debt remains valid, and landlords can take legal action to recover the outstanding balance.
Can tenants negotiate rent arrears repayment?
Yes, tenants can negotiate a repayment plan with their landlord. Open communication and a formal agreement can help resolve arrears without escalating the issue to court.
How long do landlords have to recover rent arrears?
Under UK law, landlords have six years from the date of the unpaid rent to take legal action to recover arrears.
What happens if a tenant refuses to pay rent arrears?
If a tenant refuses to pay, landlords can escalate the matter by sending a Letter Before Action, applying to the small claims court, or pursuing a CCJ.
What happens to rent arrears after a possession order?
When a possession order is granted by the court, it means that the landlord has the legal right to regain possession of the property. However, this doesn’t automatically erase any rent arrears owed by the tenant. Rent arrears can still exist even after the tenant has been evicted or has vacated the property.
Final thoughts
Unpaid rent after a tenant moves out can be frustrating for landlords and stressful for tenants, but there are ways to handle the situation. Landlords have legal options to recover the money, while tenants should try to resolve arrears before moving out to avoid long-term financial and legal issues.
If you're dealing with rent arrears, getting the right support can make a big difference. Landlords may benefit from speaking to a specialist landlord solicitor, while tenants can seek help from legal advisors or tenant support organisations to understand their rights and options.
References
Private renting rent arrears from Gov.UK
Eviction for rent arrears from Citizens Advice
