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Rent Arrears Recovery Calculator

Compare pursuing rent arrears against ending the tenancy early, weighing legal costs, further arrears and the recovery you realistically expect.

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Expected outcome of pursuing
Further arrears during the process
Total exposure if you pursue
Expected recovery

Arrears force an unpleasant commercial decision. Pursuing them costs legal fees and takes months during which more rent goes unpaid, and even a successful judgment recovers nothing if the tenant has nothing. Ending the tenancy stops the bleeding but writes off what is owed.

The honest comparison weights the recovery by how likely it actually is, which is the step most landlords skip when they are angry.

The comparison

Pursuing means more months of unpaid rent plus legal costs, against a recovery weighted by how much you realistically expect to collect. The net outcome is the expected recovery less the legal costs and the further arrears accrued while the process runs.

Worked example

With 4,500 already owed, a 1,500 rent and a six-month process, a further 9,000 accrues, and with 1,800 of legal costs the total exposure reaches 15,300. Recovering 40% of the 13,500 owed returns 5,400, so pursuing leaves you 5,400 worse off than the arrears alone — the further rent and costs exceed what comes back.

Act early, and check the paperwork first

Arrears grow while you decide. Most jurisdictions also require specific notices, deposit handling and safety certificates to be in order before possession can be sought, and a defect in any of them can restart the process. Verify those before starting anything.

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Frequently asked questions

How much of arrears is typically recovered?

Frequently a minority, and often nothing where the tenant has no assets or income to attach. A judgment is not a payment, which is why weighting the expected recovery matters more than the amount owed.

Should I use the deposit against arrears?

Usually yes, within the scheme rules, but it rarely covers much — a one or two month deposit against several months of arrears leaves most of it outstanding. Follow the scheme process rather than simply retaining it.

Is a payment plan better than possession?

Often, where the tenant has genuine income and the arrears arose from a temporary problem. A modest recovery over a year with a paying tenant in place usually beats an empty property, legal costs and an unenforceable judgment.