A payment plan should address the reason for the shortfall. Asking for an unrealistic instalment may produce a signed promise without improving the account.
Understand affordability
- Ask what can realistically be paid after essential costs and encourage independent debt advice for a continuing problem.
- Identify whether income timing differs from the rent date or whether the rent itself is no longer affordable. An arrears instalment cannot fix an ongoing monthly deficit.
- Consider support, benefits administration or an agreed temporary arrangement without promising eligibility or debt write-off.
Put the agreement in writing
- State the starting balance, ordinary rent, extra arrears instalment, payment dates and method. Identify any amount that remains disputed.
- Explain how receipts will be allocated and when statements will be sent. Keep the arrangement understandable without specialist terminology.
- State the review date and how either party should report a problem. Do not add unlawful fees or an unsupported default penalty.
Review performance fairly
- Reconcile each payment and tell the tenant the remaining balance. Correct an error before treating the plan as broken.
- If an instalment is missed, ask why and consider a revised sustainable proposal. Record the response and decision.
- If formal action remains necessary, give the adviser the full plan history and use the country's correct process.
Write down the figures so the plan can be checked
Separate current rent from the additional arrears instalment and state the dates for both.
- For a fictional £900 arrears balance, an affordable extra £75 a month would take twelve payments to clear, provided current rent is also paid and no other adjustment arises. Do not present that plan as viable without discussing the household's available income.
- State the opening balance, disputed items, payment reference, first payment, review date and who to contact if circumstances change. Explain how receipts will be recorded.
- At each review, reconcile actual payments before deciding that the plan failed. Record a revised agreement clearly and obtain advice about any existing notice or proceedings rather than assuming the plan cancels them.
Example: £900 arrears at £75 a month
In this fictional example, £75 monthly would clear £900 in 12 payments only if current rent is paid and no new arrears arise. Show those two obligations separately. If the tenant can pay only the ordinary rent, the plan needs reconsideration rather than an assumed £75 surplus.
What to do
- Confirm the agreed or disputed starting balance.
- Agree current-rent and arrears payments separately.
- Set a review date and update the plan if circumstances change.
Evidence to keep
- Dated balance and payment-plan terms.
- Tenant proposals, agreed changes and actual receipts.
Sources and guidance
- What a private landlord must do about rent arrearsScottish Government · checked 20 October 2026
- Universal Credit: rented housing guide for landlordsDepartment for Work and Pensions · checked 20 October 2026
- Giving notice to evict tenants in EnglandUK Government · checked 20 October 2026