Combined with tighter eviction rules, landlords with multiple properties are under increasing pressure to maintain cash flow and accurate financial forecasts.
How the Renters’ Rights Act 2025 reshapes high-volume arrears recovery
The Renters’ Rights Act 2025 marks a fundamental change in how landlords and finance teams must manage rent arrears at scale. With the removal of Section 21”no fault” evictions and fixed-term tenancies phased out, landlords must follow stricter legal procedures which can make recovering arrears slower and less predictable.
Limiting rent increases to once per year puts landlords with multiple properties under pressure, as maintenance costs often rise more frequently than rental income. Matching rent increases to market rates adds another layer of complexity, forcing landlords to anticipate market movements, tenant behaviour and income timing to avoid gaps in cash flow.
Landlords increasingly depend on Section 8 evictions to remove tenants. In the UK, this requires serving notice on specific grounds such as, rent arrears of more than 2 months or serious property damage, before proceeding with court action. If the tenant settles the arrears after notice is served, landlords are unable to regain possession, adding delays and unpredictability across their portfolio.
For finance teams and landlords, the result is an increase in risk when recovering. In this environment, high-volume arrears can’t be managed reactively. Early insight allows landlords to prevent arrears from accumulating, while streamlined processes, such as faster and cleaner escalation, ensure timely action. Together, they are essential for protecting income and maintaining predictable cash flow under the new regulatory framework.
Common misconceptions when recovering high-volume rent arrears
Recent data from Reposit indicates that rent arrears have risen by 44%, with the average outstanding balance now reaching £2,597 per tenancy. For landlords managing large portfolios, this is more than a short-term cash-flow issue and represents a growing operational and compliance risk. As arrears accumulate across multiple properties, the ability to fund essential maintenance and meet statutory obligations becomes increasingly strained.
One recovery approach works for all tenants
One of the most common misconceptions in arrears recovery is treating all cases the same. High-volume portfolios typically have a broad mix of the following arrears profiles:
- Short-term arrears: Usually arise when a tenant faces temporary financial difficulties, such as redundancy or unexpected expenses
- Vulnerable tenants: Some tenants may have health or personal circumstances that limit their ability to maintain a regular income
- Disputed balances: Tenants might challenge the rent owed or raise concerns about property condition and whether it meets rental standards
Cases of long-term non-engagement: Often happens when a tenant has vacated the property or contact details are outdated, making communication and recovery more difficult
Treating all arrears cases the same rarely delivers the best results as each account comes with its own challenges, risks and tenant circumstances. For landlords managing multiple properties, failing to distinguish can delay the appropriate action and slow decision-making.
By identifying the type and severity of arrears early, landlords can apply proportionate strategies that improve recovery outcomes while controlling risk.
Key principles for high-volume arrears recovery:
Identify patterns early to separate short-term payment delays from repeat non-payment before balances escalate across the portfolio
- Adapt engagement based on behaviour, using supportive contact where payment is likely and firmer escalation where delays are ongoing, keeping large volumes under control
- Use consistent, repeatable processes like email and letter templates to reduce manual effort, support teams handling large case numbers and maintain oversight across the portfolio
Legal action is the fastest and most effective solution
Legal action should be viewed as part of a broader arrears recovery framework rather than the default response to non-payment. For landlords managing large rent books, reliance on court proceedings can be costly and unpredictable as ongoing backlogs continue to delay resolution and cash-flow recovery.
Instead, early engagement with tenants and the use of well-governed repayment arrangements tend to result in stronger recovery outcomes. These approaches help reduce escalation into formal disputes and allow landlords to manage arrears at scale, without over-reliance on legal processes.
This is particularly relevant for high-volume landlords. Recent data from Private Landlord Survey shows that while around 80% of private landlords reported no rent arrears in the past two years, this figure falls to just 49% among landlords with five or more properties. With portfolio growth increasing the risk of arrears, proactive and repeatable recovery strategies, such as automatic payment reminders, become a commercial necessity.
Older debts aren’t worth pursuing
UK behavioural insights suggests that tailored early contact improves arrears engagement and supports earlier repayment agreements alongside addressing historic arrears.
Many organisations write off aged arrears too quickly but changes in circumstances can often make older balances recoverable when approached appropriately. A common scenario we’ve seen is where arrears result from temporary income disruption. For example, redundancy or reduced working hours, rather than a sustained inability to pay. When tenants later return to stable employment, historic balances can often be recovered through structured repayment plans and negotiation.
Taking Control of High-Volume Rent Arrears
Landlords overseeing large tenancy portfolios face the dual challenge of escalating balances and operational strain, where even small delays can affect cash flow and forecasting accuracy. Implementing structured and early engagement is essential to control risk and support financial stability. Collections+ works with landlords facing high-volume rent arrears to apply these strategies consistently, supporting income protection and the recovery of older balances.
