Early arrears action helps agencies grow as eviction rules tighten

Agencies managing arrears well were found to increase lettings management commission income by over 13% in 12 months.

Related topics:  Agents,  Renters Rights Bill
Property | Reporter
15th October 2025
Neil Cobbold - Reapit - 595
"With the Renters’ Rights Bill set to extend eviction timelines, agents who don’t act immediately on arrears could find themselves stuck, struggling to collect late rent, incapable of evicting, and unable to give landlords the assurance that they’ll be able to take legal possession of their properties within a reasonable time of tenants defaulting"
- Dr Neil Cobbold - Reapit

As the Renters’ Rights Bill nears Royal Assent, Reapit is urging letting agents to prioritise early arrears management to grow their agency, safeguard income, and protect landlords. Data from Reapit’s automated rental payment platform, PayProp, shows a clear link between arrears control and commission growth.

In September 2025, the top 10% of agencies with the lowest arrears on PayProp had fewer than 1.4 tenants in arrears per agency, with tenants owing an average of £513. According to the latest Office for National Statistics data, this represents less than 39% of average monthly UK rents. That same group of agents grew their lettings management commission income by over 13% in the preceding 12 months, highlighting the correlation between effective arrears management and rental income growth.

Rule changes make arrears management critical

The Renters’ Rights Bill returned to the House of Lords on 14 October for final consideration, extending the eviction threshold in England for tenant arrears to three months before an eviction notice can be served. Current court delays already mean landlords wait an average of 27.9 weeks to repossess a property once an eviction notice is issued. With accelerated possession being removed, these delays are expected to increase further.

Dr Neil Cobbold (pictured), commercial director at Reapit, explained: “With the Renters’ Rights Bill set to extend eviction timelines, agents who don’t act immediately on arrears could find themselves stuck, struggling to collect late rent, incapable of evicting, and unable to give landlords the assurance that they’ll be able to take legal possession of their properties within a reasonable time of tenants defaulting. That’s why automation and early intervention are essential strategies for managing arrears for any agency that wants to protect its income and grow its landlord portfolio.”

Tools to act quickly

PayProp offers proactive arrears management tools, enabling agents to respond as soon as arrears are automatically flagged. Because the platform is bank-integrated, agents can view the live payment status of every tenant, showing who has paid and who has not, 24/7. Proactive reminders can be approved and sent in bulk via email and text message. This timely prompting results in 64% of tenants responding within 48 hours.

“The most successful agents on our platform are those who act early,” added Cobbold. “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.”

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