Can a landlord sue for unpaid rent?

Chasing rent arrears can be a frustrating task for landlords, and many arrears go unpaid for months or even years.

So, can a landlord sue for unpaid rent?

Yes, a landlord can sue for unpaid rent in England and Wales. This process typically involves several steps and may vary depending on the amount of rent arrears and the circumstances surrounding the non-payment. 

It is often advisable that landlords seek legal advice to help them decide the best option for recovering rent arrears from tenants.

How can a landlord recover unpaid rent?

Landlords in England and Wales have several options for recovering unpaid rent or resolving disputes with tenants. These options range from formal legal action through the courts to various forms of Alternative Dispute Resolution (ADR). Here is a detailed overview of these options:

Legal Action

Small Claims Court

The Small Claims Court is part of the County Court system and is designed for resolving disputes involving smaller amounts of money, typically up to £10,000. It is a more informal and cost-effective option compared to higher court claims.

The cost of filing a claim depends on the amount being claimed, but it is generally lower than higher court fees. If the claim is successful, a court order may be issued for the tenant to pay these costs.

County Court action

For claims exceeding £10,000 or for more complex cases, landlords can file a claim in the County Court. The procedure is more formal, and legal representation is often advisable.

The process is similar to the Small Claims Court, but with a more detailed procedure. The court may require a preliminary hearing and a full trial if the case is contested.

Costs will be higher than Small Claims Court but can be recovered if the claim is successful.

High Court

In rare and very high-value cases, landlords might take action in the High Court. This is usually only necessary for substantial claims or particularly complex cases.

Alternative Dispute Resolution (ADR)

Mediation

Mediation involves a neutral third party (the mediator) helping the landlord and tenant reach a mutually acceptable agreement.

Both parties meet with the mediator, who facilitates discussions and negotiations. The mediator does not make a decision but helps both parties find common ground.

Arbitration

Arbitration is a more formal ADR process where an arbitrator (or panel) hears evidence from both parties and makes a binding decision.

Both parties agree to submit their dispute to an arbitrator. The process is similar to a court hearing but is private and more flexible.

The decision is binding and enforceable by law.

Adjudication

Adjudication involves a neutral adjudicator reviewing the evidence and making a binding decision. This method is commonly used in construction disputes but can be applied to rental disputes.

The adjudicator reviews written submissions from both parties and makes a decision.

Negotiation

Direct negotiation between the landlord and tenant can often resolve disputes without third-party intervention.

The landlord and tenant meet or communicate to discuss the issue and try to reach an agreement.

County Court Judgment (CCJ)

A County Court Judgement (CCJ) is a court order that can be issued against a tenant who fails to pay the rent owed to a landlord. It is a formal declaration by the court that the tenant owes the specified amount of money to the landlord. Obtaining a CCJ can be a crucial step for landlords in recovering unpaid rent.

How can Expert Commercial Law assist?

The solicitors on our panel provide expert legal advice on commercial landlord and tenant disputes. They can also assist potential defendants in their cases if a claim is brought against them.

Please note we are not a firm of solicitors; however, we maintain a panel of trusted and regulated legal experts. If you contact us in relation to a freezing injunction query or a commercial law case, we will pass your case on to a panel firm in return for a fee from our panel firms. We will never charge you for passing your case to a panel firm.