In case the rent arrears are of low value it is always difficult for a landlord to know how to go about rent arrears recovery, more so if the financial position of the tenant isn’t strong and the letting market is undergoing a slump. Most of the times, the landlords try to work something out mutually with their tenants but if that bears no fruit a landlord might be left with no option but to take action against his tenant.
If case of rent arrears for a commercial property, landlord may decide to forfeit his tenant’s lease and he may do so by changing the locks (an option unavailable to a residential landlord). It is upto the landlord to pursue the rent arrears or not after getting back the premises. On the other hand, a residential landlord wanting to recover rent arrears does not have a choice; he must resort to proceedings. He may do so for both the possession and the rent arrears, or either of the two as per the circumstances.
Because of the county court small claims regime and the no-costs rule the landlords might be better off if they take insolvency proceedings rather than court proceedings. The consequences are much more serious for the tenant and there may be costs advantages in doing so. When it comes to costs generally it is worth considering if the costs related to recovery can be claimed through the service charge.
Recovery of rent arrears is a service which we are adept at providing (subject to limitations) for a fixed fee.