Risk to Resilience: Rewriting the Rent Arrears Rulebook in the New PRS
At The Depositary, we talk a lot about reducing friction, saving time, and making tenancy conclusions smarter. But our recent chat with Julie Ford of Lettings Advice Service reminded us that innovation in lettings isn’t just about speeding things up - it’s about improving outcomes. Especially when it comes to one of the sector’s most persistent pain points: rent arrears.
Julie brings over 30 years of frontline experience across lettings, compliance, local authority engagement, and tenant support. Her message to the sector was crystal clear: rent arrears need to stop being treated as an inevitable cost of doing business and start being seen as a signal - a trigger for smarter, more strategic action.
Rent Arrears Are a Systemic Signal — Not Just a Tenant Problem
There is currently over £1.7 billion available in grants and funding for tenants in distress - yet this lifeline is often underutilised. Instead, many arrears spiral out of control due to late intervention and a lack of awareness around available support.
In many cases, tenants aren’t unwilling - they’re overwhelmed. With the right support, they can recover quickly. But only if someone steps in early, asks the right questions, and connects them to real help.
That’s where letting agents, PBSA managers, and BTR operators come in.
Agents as Enablers: Turning Insight into Action
Julie challenged the industry to stop thinking about agents as passive administrators. Instead, they need to be equipped as early intervention specialists.
That means:
Adjusting communication templates to reduce fear and defensiveness
Providing staff with basic training in grants, signposting, and support networks
Reframing arrears letters from demand to dialogue
Embedding welfare awareness into day-to-day processes
Letting agents are often the first to notice that something’s changed. If they’re empowered to respond - not just report - they can de-escalate problems before they become costly.
PBSA & BTR: Why Proactivity Matters More Than Ever
Large-scale operators have a unique opportunity. In PBSA and Build to Rent, portfolios are sizeable, tenant journeys are centralised, and communication can be streamlined. That means greater visibility - and greater responsibility.
Julie’s insights are especially relevant here:
Rent arrears in PBSA can disrupt operational cashflow and dent investor confidence
In BTR, reputational risk from aggressive arrears handling is growing
Tenants expect modern, flexible, fair systems - not legal escalation as default
Operators who embed supportive arrears strategies now will lead the next wave of tenant-centric growth.
What This Means for Our Sector
The Renters (Reform) Bill is forcing change. Section 21 is on its way out. Section 8 is under pressure. But legal tools alone won’t solve this.
The PRS needs:
Earlier, better communication with tenants in difficulty
Access to funding and grants to support struggling renters
Systems that allow agents to act with empathy, without compromising standards
At The Depositary, we see an opportunity to extend our mission of better tenancy conclusions upstream. Smarter arrears management means fewer disputes, faster resolutions, and stronger tenancies.
We’re not here to replace agent empathy with automation - we’re here to make space for it.
Rethinking Value in a Lettings Business
Rent arrears don’t just affect income - they affect perception. Tenants talk. Reviews matter. And for institutional landlords, ESG goals and reputational benchmarks are now commercial considerations.
Julie’s core message? Agents and operators who can demonstrate compassion and competence will win more trust, more instructions, and more loyalty. Not because they’re avoiding arrears, but because they’re managing them better.
Final Thoughts: Better Lettings Means Better Listening
The future of our sector isn’t just faster- it’s fairer. By addressing arrears with insight instead of indignation, and by empowering agents to act strategically, we build a PRS that works better for everyone.
We’re grateful to Julie for reminding us that sometimes, leadership isn’t about finding new answers - it’s about asking better questions.
Because when arrears are handled with care, clarity, and confidence, tenancies don’t just end well. They thrive.
