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Published 17 August 2017
There is a number of options open to a landlord when a tenant falls into arrears. One option is to issue debt proceedings. From 1 October 2017 a new Pre-Action Protocol will apply to debt proceedings issued against individuals (including sole traders). This will effectively make it more difficult and time consuming for landlords to recover arrears owed by tenants who are individuals.
The new Pre-Action Protocol will require landlords to give defaulting tenants detailed information about the debt, and to provide extra time for repayment and for the tenant to obtain debt advice. Failure to comply with the Protocol may incur cost penalties in any subsequent proceedings. The aim is to protect individuals from premature debt actions and to encourage the negotiation of payment plans or other forms of dispute resolution.
In anticipation of the new Protocol, landlords may wish to consider other ways to protect themselves against default by tenants who are individuals. For example:
Please contact us if you would like to discuss your options further.
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