Rent Arrears Payment Plan Letter Generator
Turn rent arrears into a clear instalment plan, see the full repayment schedule and clearance date, and generate a printable payment plan letter.
Arrears & Repayment Details
Letter Details
Scenario Analysis: Different Repayment Amounts
| Extra Repayment | Instalments | Clearance Date |
|---|---|---|
| - | - | - |
Repayment Schedule
| Period | Date | Rent Due | Extra Repayment | Arrears Remaining |
|---|---|---|---|---|
| Enter arrears and repayment details to see the schedule. | ||||
Calculation Breakdown
InstalmentsEnter your details to see each step.
What Is A Rent Arrears Payment Plan?
A rent arrears payment plan sets out how unpaid rent will be repaid over time, usually as a fixed extra amount added to the ongoing rent each period until the arrears reach zero.
How Is The Schedule Worked Out?
The total arrears are divided by the agreed extra repayment amount to give the number of instalments, then spread across the chosen frequency from the start date to give a clearance date.
Who Is This For?
Landlords proposing a structured way to recover arrears, and tenants wanting to offer a realistic plan they can actually afford, based on their own income.
Common Mistakes
Common mistakes include agreeing an instalment that is not affordable long-term, forgetting that ongoing rent must still be paid alongside the extra repayment, and not putting the agreement in writing.
What Happens Next?
Once agreed, both sides should keep a copy of the plan, track payments against the schedule, and revisit the plan if circumstances change significantly.
Important Considerations
A payment plan does not automatically prevent a landlord from seeking possession if arrears are serious. If arrears are large or a claim is being considered, both sides should seek advice promptly. Landlords should also test whether the property remains viable without assuming every missed payment will be recovered; the Buy To Let Remortgage Calculator can compare a refinance, while the cash-flow sensitivity calculator can model voids and rent shortfalls.
Frequently Asked Questions
What is a rent arrears payment plan?
It is an agreement to pay off rent arrears in instalments, on top of ongoing rent, until the arrears balance reaches zero.
How is the number of instalments worked out?
Total arrears divided by the extra repayment amount per period, rounded up to the next whole instalment.
Does a payment plan replace ongoing rent?
No. The extra repayment is on top of the ongoing rent, which should continue to be paid as normal.
What if the plan takes too long?
Plans longer than around 36 months may be unrealistic. Consider a higher instalment, a lump sum, or discussing benefit or hardship support.
Does agreeing a plan stop eviction proceedings?
Not automatically. A landlord may still be entitled to seek possession if arrears reach the level needed for a Ground 8, 10 or 11 claim, even with a plan in place, unless they choose not to.
What is the affordability check?
It compares the extra repayment to the tenant's net income as a rough guide: under 10% is broadly comfortable, 10-20% manageable, and over 20% tight.
Is the affordability check an official test?
No. It is an illustrative guide only, not a lender, court or benefits affordability assessment.
Should the plan be put in writing?
Yes. A written plan signed or acknowledged by both sides avoids confusion about what was agreed.
What is the Pre-Action Protocol for Debt Claims?
It sets expectations that a landlord pursuing arrears as a debt through the courts should give the tenant a reasonable chance to propose a repayment plan first.
Can a tenant propose their own plan?
Yes. Tenants can use this tool to propose a realistic plan to their landlord based on what they can actually afford.
What happens if a payment is missed?
This depends on what is agreed. Many plans specify what happens if an instalment is missed, so it is worth agreeing this upfront.
Does this cover benefit claims like Universal Credit?
No. This tool does not calculate benefit entitlement. Tenants struggling with rent may want to check eligibility for support separately.
Can I include a lump sum in the plan?
This calculator assumes equal instalments. For a lump sum followed by smaller instalments, reduce the arrears figure by the lump sum first and recalculate.
Is this legal or financial advice?
No. This tool provides a general repayment schedule and letter draft only.
Where can I get help with rent arrears?
Shelter, Citizens Advice and the NRLA all publish guidance on handling rent arrears for tenants and landlords.
Sources
- Shelter: rent arrears, what to do
- Citizens Advice: rent arrears
- GOV.UK: Pre-Action Protocol for Debt Claims
Last updated: 2026-07-22. This page gives an estimate and drafting tool only and is not legal, tax, financial, or employment advice.