Payment of Rent during the possession process

The landlord can continue to accept rent from the tenant at any time during the possession process, from service of the notice to possession. The old rule that this could in some circumstances invalidate the landlord’s right to possession by accepting rent does not apply for assured/assured short-hold tenancies.

The landlord can continue to accept rent from the tenant at any time during the possession process, from service of the notice to possession. The old rule that this could in some circumstances invalidate the landlord’s right to possession by accepting rent does not apply for assured/assured short-hold tenancies. Indeed the landlord must accept rent if it is offered – he cannot artificially continue a rent arrears claim by refusing to accept the rent.

In the event that a Landlord has successfully obtained a possession order from the court, rent is still payable up to and including the date ordered by a judge that the tenant should leave. Should a tenant remain in occupation after that date bailiffs will need to be employed to implement the Court Order and, until they physically remove the tenant from the premises, an ‘occupational charge’ (also known as mesne or mean profits) equivalent to the daily rate of the original rent may be lawfully charged.

 When accepting any payments in the above circumstances, a Landlord should be careful to acknowledge receipt under the appropriate heading. E.g. as rent; in the case of payments and arrears to and including date of possession order and as ‘an occupational charge’ (or the correct legal definition – mesne profits); for any payments in respect of occupying the accommodation from period between non-compliance with possession order date until the day of eviction by bailiffs.

If possession is ordered on the grounds of rent arrears (after following the Section 8 possession route), the court will normally order the tenant to pay back the rent owed at a rate appropriate to their circumstances. If asked to consider it, the court may also award a sum to cover interest on the outstanding rent.