The Tenant Register That Doesn't Officially Exist... But Works Anyway

Many landlords considering the implications of the Renters' Rights Act will be asking the same question: how can I safeguard my investment from problematic tenants when the routes to regain possession are becoming more limited?

The answer is not a simple one. There are many layers to the issue, and in some cases landlords may unintentionally be contributing to the problem by focusing on the short term rather than the long term.

On a human level, anyone can fall on hard times. A tenant may lose their job through redundancy, experience ill health, suffer a relationship breakdown, or face financial difficulties that are beyond their control. There are countless reasons why a previously reliable tenant may begin to struggle with their rent payments.

At that point, it is important to approach the situation with compassion and understanding. Many tenants who encounter financial difficulties will proactively contact their landlord to explain their circumstances, although some may be less forthcoming. Where landlords notice missed payments or a decline in communication, reaching out in a non-confrontational way can often help prevent matters from escalating.

A tenant who falls into arrears may simply be experiencing a temporary setback. In these situations, a realistic payment arrangement that reduces short-term pressure while gradually recovering the outstanding balance can often help a tenant get back on track.

When arrears arise, landlords should make every reasonable effort to work collaboratively with tenants to find a sustainable solution. Maintaining communication helps ensure the landlord remains a source of support and engagement, rather than becoming another problem the tenant avoids confronting.

Of course, cooperation is not always forthcoming. Some tenants refuse to engage, fail to keep promises, or repeatedly ignore attempts to resolve the situation. While this can be incredibly frustrating, it is often at this point that the wider issue begins to perpetuate itself.

Where landlords have exhausted reasonable efforts to communicate and resolve arrears, many will understandably begin the process of regaining possession. While this may solve the immediate problem for that landlord, it can simply move the issue elsewhere, allowing the same behaviour to be repeated with another landlord.

At the same time, the Renters' Rights Act introduces a range of measures intended to improve standards and accountability across the private rented sector, including the abolition of Section 21 evictions, new landlord registration requirements and enhanced enforcement powers. While these changes are intended to improve the experience of renters, some landlords have questioned whether there is sufficient accountability for tenants who repeatedly fail to meet their contractual obligations.

This raises an interesting question: as landlords will be subject to public registration and increased scrutiny, should there also be a mechanism that allows landlords to identify tenants with a proven history of serious rent arrears and non-payment?

Data protection and privacy legislation would make any formal tenant register legally challenging to implement and operate, particularly where personal data and allegations of misconduct are involved. However, there is already an established system that can serve a similar purpose.

That system is the county court process and, where appropriate, a County Court Judgment (CCJ).

Many landlords are unaware that rent arrears can be pursued as a debt through the courts. Before bringing a claim, landlords are expected to follow the appropriate pre-action process and provide the tenant with an opportunity to address the debt. If this is unsuccessful, a claim for the outstanding rent can be made through the court system. In many cases, this can be done online through Money Claim Online (MCOL), the government's service for recovering fixed sums of money. Claims made through MCOL are generally suitable where the amount being claimed is known, the claim is for less than £100,000, and the defendant has an address in England or Wales. [gov.uk], [moneyclaim.gov.uk]

The process is relatively straightforward. The landlord creates an account, completes details of the debt being claimed, provides a brief summary of the basis of the claim, retains supporting evidence, and pays the applicable court fee online. The tenant is then served with the claim and has the opportunity to pay the debt, admit the claim, propose repayment terms, or dispute the claim. If the tenant fails to respond within the prescribed timescales, the landlord may be entitled to request judgment by default.

Court fees are payable based on the value of the claim and are payable when the claim is issued. In many successful claims, these fees can also be added to the amount sought from the tenant.

To succeed, landlords should be prepared to demonstrate that they have acted reasonably throughout the process. This may include evidence of attempts to communicate with the tenant, proposed repayment plans, correspondence regarding the arrears, and accurate rent statements showing the amount outstanding.

The court will then consider the evidence provided by both parties before deciding whether the debt is owed.

Where the court determines that the arrears are due, it may issue a judgment requiring repayment either in full or by instalments. If the tenant fails to comply, the landlord may be able to take further enforcement action through the courts.

The significance of this is that if a County Court Judgment is entered and the debt is not satisfied within the relevant timescale, the judgment may be registered and remain on the tenant's credit record for up to six years. This can affect their ability to obtain credit and may also be identified during future tenant referencing checks, providing future landlords and letting agents with evidence of an unsatisfied court judgment arising from unpaid debt, including rent arrears where that was the basis of the claim. A judgment paid in full within one month can generally be removed from the register, whereas judgments paid after that period remain recorded but can be marked as satisfied.

While court action should always be a last resort, it is important for landlords to understand the options available to them. Working constructively with tenants wherever possible remains the best outcome for all parties, but where tenants consistently refuse to engage, there are legal mechanisms available that can help improve accountability and reduce the likelihood of the same issues being repeated elsewhere.

In the absence of any formal tenant register, the county court process arguably remains the closest thing available to a system that balances compassion for those facing genuine hardship with accountability for those who repeatedly refuse to meet their financial obligations. It does not label someone as a "bad tenant", but it does create an independent and legally verified record where a debt has been proven and left unresolved.