Letting agents are being urged to act early on arrears to protect their income, safeguard landlords, and stand out in a more tightly regulated rental market.
As the Renters’ Rights Bill edges closer to Royal Assent analysis from Reapit’s automated rental payment platform, PayProp, shows a direct link between proactive arrears management and agency growth.
The top 10% of agencies with the lowest arrears using the platform in September 2025 had fewer than 1.4 tenants in arrears per agency, with tenants owing an average of £513 – less than 39% of the average UK monthly rent, according to ONS data.
Those same agencies grew their lettings management commission income by more than 13% over the past year, highlighting how effective arrears control not only stabilises cash flow but directly supports business expansion.
NEW EVICTION RULES
With new eviction rules set to lengthen timelines for repossession, experts are warning that agents who delay arrears action risk being left exposed.
Under the Renters’ Rights Bill, landlords will be unable to issue an eviction notice until tenants have been in arrears for at least three months – a change expected to increase pressure on both landlords and their managing agents.
Current court delays already stand at an average of 27.9 weeks from notice to repossession, and with accelerated possession being removed under the new legislation, that figure is expected to rise further.
Dr Neil Cobbold (main picture), Commercial Director at Reapit, says the reforms make automation and early intervention “essential strategies” for any agency serious about protecting revenue and retaining landlords.
RIGHT TOOLS FOR THE JOB
Reapit’s PayProp platform offers a suite of proactive arrears management tools, automatically flagging missed payments in real time through its bank-integrated system. Agents can instantly view live payment data and send reminders in bulk – by email or SMS – prompting tenants to act quickly.
The approach works: 64% of tenants respond within 48 hours of a reminder, significantly improving collection rates and reducing the administrative burden on agents.
According to Reapit, the most successful agencies on PayProp share a common trait – they act early. By doing so, they not only secure more predictable income but also strengthen their reputation for professionalism and reliability in an increasingly challenging lettings environment.
Cobbold adds: “The most successful agents on our platform are those who act early. They’re not just protecting their commission; they’re building a reputation for financial control and professionalism that attracts landlords who are increasingly nervous about arrears and eviction delays.
“We see that play out in their growth stats, with the agents that manage arrears the best growing their rental commission income over the last 12 months. And those are the agents landlords are looking to protect their rental income.”
