Propertymark Industry Supplier TDS helps letting agents prevent, prepare for, and resolve rent arrears disputes. With the right processes and a proactive approach, agents can protect landlords, reduce stress for tenants, and avoid time-consuming adjudications.
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Common difficulties with arrears claims
Rent-related disputes typically arise when tenants leave owing money; whether through missed monthly payments, shortfalls, or a misunderstanding. Often, these disputes happen because tenants assume the deposit covers the final month’s rent, or because there’s been a lack of clear communication about what’s owed. Sometimes it’s down to incomplete rent schedules, or confusion when deductions for rent and damage overlap.
Whatever the cause, one thing is certain: when it comes to rent arrears, having clear, consistent documentation makes all the difference.
Prevention starts at the beginning
While it’s not always possible to prevent rent arrears entirely, especially when a tenant suddenly stops paying, there are steps letting agents can take to reduce the likelihood and limit the impact. From the outset of a tenancy, clear communication, good systems, and regular engagement can go a long way in avoiding confusion and helping tenants stay on track.
- Set expectations early - Be crystal clear at check-in that the deposit cannot be used as the final month’s rent unless agreed in writing. Include this in your welcome pack and tenancy agreement and remind tenants again when notice is given.
- Conduct thorough affordability checks - Start with strong tenant referencing, including income verification and credit checks. If there’s any doubt, consider a guarantor for further security.
- Use standing orders or direct debits - In today’s world, there’s really no reason for rent not to be paid via bank transfer. Encourage tenants to set up a standing order or direct debit from the outset. It creates a clear, trackable payment trail, avoids confusion, and ensures there’s a reliable record if any issues do arise.
- Keep a detailed rent ledger - Maintain a month-by-month rent statement showing rent due, rent received, payment method, and balance. This should be updated throughout the tenancy and shared with the tenant if any arrears arise.
- Act early on missed payments - If a tenant misses rent, don’t wait until the tenancy ends to act. Open a dialogue early and document every communication. Offer reasonable repayment plans where possible. Early resolution reduces the chance of arrears ending in dispute.
Managing end-of-tenancy rent arrears
Even with strong processes in place, some tenants will still leave owing rent. In these situations, it’s essential to act quickly, communicate clearly, and back up any claim with the right evidence. A straightforward approach at the end of a tenancy can make all the difference when it comes to avoiding disputes.
Reconcile the rent account promptly
Once a tenancy ends, provide the tenant with a final rent account breakdown. Highlight the arrears and the period they relate to. This step alone often resolves misunderstandings.
Communicate before claiming
Explain clearly what part of the deposit is being claimed and why. When making deductions for both arrears and other issues (e.g. cleaning), break each down with evidence and amounts.
Gather and present evidence
TDS adjudicators require:
- A full rent account (ideally in spreadsheet or statement form)
- A copy of the tenancy agreement
- Bank statements showing payments received
- Evidence of communication with the tenant about arrears
- Any agreements or payment plans (even informal ones)
Be proportionate and transparent
If claiming the full deposit, make sure it reflects the actual arrears. Multiple issues should be presented separately. Transparency improves the chances of resolution without a formal dispute.
Mistakes to avoid
Some disputes can be avoided with just a few small tweaks to standard processes. One common pitfall is not updating the rent schedule regularly. A rent account that hasn’t been touched in months is much harder to defend. Another is failing to keep written proof of rent arrears. Without clear bank evidence or receipts, it quickly becomes one person’s word against the other.
Late or vague communication can also cause problems. Bringing up arrears for the first time at the check-out stage may blindside tenants and make them more likely to challenge the claim.
Finally, avoid combining unrelated deductions without proper breakdowns. Itemise rent arrears and property damage, showing exactly how each figure was calculated. TDS adjudicators rely on this clarity to make a fair decision.
For a more detailed overview of how disputes are assessed and what evidence is most effective, download the free guide to Dispute Resolution from TDS.
Mid-tenancy mediation with the Tenancy Redress Service
Issues that occur during a tenancy don’t always have to escalate to a formal dispute. The Tenancy Redress Service (TRS), owned and operated by the TDS Group, offers a free and impartial way to help landlords and tenants resolve complaints mid-term, before they become bigger problems.
If a tenant has already tried to resolve an issue directly with their landlord but hasn’t been successful, they can raise a complaint through the TRS. Even if the landlord isn’t a TRS member, the service will still try to help as long as the landlord agrees to engage.
Landlords can join the scheme for free by signing up directly with TRS or through the National Residential Landlords Assocation. Membership signals a willingness to resolve issues fairly and gives tenants reassurance that there’s a clear route to escalate complaints.
Letting agents should make both landlords and tenants aware of the Tenancy Redress Service. Doing so can:
- Encourage earlier resolution of rent arrears before they escalate
- Improve communication and trust between landlords and tenants
- Reduce the risk of deposit disputes at the end of the tenancy
If a landlord is a TRS member, remind tenants that they can contact TRS if they’re unable to resolve a complaint themselves. It’s a simple, practical way to defuse issues early.
Learn more and encourage landlords to join at: www.tenancyredressscheme.org.uk
Join TDS for expert support
Rent arrears remain one of the more sensitive and often complex areas of tenancy deposit disputes, especially in the current rental landscape. By putting strong systems in place from the start of a tenancy, staying alert to missed payments, and communicating clearly throughout, agents can reduce the chances of disputes and ensure smoother outcomes when problems do occur.
That’s where the Tenancy Deposit Scheme can help, with expert guidance, free tools and templates, and a trusted dispute resolution process. As a not-for-profit organisation, TDS focuses on continually improving the services, guidance and support available to agents, landlords and tenants alike, providing access to expert help when they need it most.
Join thousands of letting agents across England and Wales who already trust TDS to protect their deposits and support their compliance.
Visit www.tenancydepositscheme.com to join today.
TDS: Easy tenancy deposit protection
Tenancy Deposit Scheme (TDS) is the only not-for-profit, Government-approved tenancy deposit protection scheme offering both FREE Custodial tenancy deposit protection and Insured tenancy deposit protection.
