How to reduce rent arrears: a 30-day process that works

Most rent arrears (rent that is due but not yet paid) do not start with a tenant who refuses to pay. They start with silence. Rent is late, nobody follows up for two weeks, and one month quietly becomes two. If you want to reduce rent arrears, the fix is usually not being harsher. It is being consistent: the same reminders, on the same days, for every tenant.

This guide gives you a 30-day process you can use from next month. It includes a reminder schedule, clear escalation steps and short scripts you can copy.

Why arrears grow so fast

Arrears get harder to collect the older they are. A tenant who is one week late can usually catch up. A tenant who is two months behind often cannot, even if they want to.

Here is a simple example. On ISHI Homes, the median rent for a 2 bedroom apartment across all areas was KES 28,000 a month, as of 25 Oct 2026. If that tenant falls two months behind, they owe KES 56,000 plus the next month's rent. Few households can find that amount at once.

So the goal is to act early, while the amount is still small.

Before day 1: set up the basics

The process works best when a few things are already in place:

• A clear due date in the lease. For example, "rent is due on or before the 5th of each month."
• One payment channel with a reference. For example, an M-Pesa paybill or bank account where the tenant uses their house number as the account reference. This makes payments easy to match.
• Correct contact details. A working phone number for every tenant, and ideally a second contact.
• A written late-payment policy. Say what happens when rent is late, and share it with tenants at move-in. Only include penalties that your lease allows.
• One record of who owes what. A spreadsheet or rent software, updated as payments come in. Arguments about "I already paid" waste days.

The 30-day process to reduce rent arrears

In the table, "day 1" is the day rent is due. Change the days to match your own due date.

When	Step	Channel	Tone
3 days before	Friendly reminder	SMS	Polite
Day 1 (due date)	Due today reminder	SMS	Polite
Day 3	First late notice	SMS	Polite, clear
Day 5	Phone call	Call	Helpful
Day 7	Written late notice	SMS and letter or email	Firm
Day 10	Agree a payment plan or a date	Call or meeting	Firm, fair
Day 14	Formal demand letter	Letter, delivered and recorded	Formal
Day 21	Final notice before legal action	Letter	Formal
Day 30	Hand over to a lawyer or start the legal process	Lawyer or court	Formal

The point is that no tenant goes more than a few days without hearing from you. Most tenants pay after the first or second reminder. The later steps are for the few who do not.

Step by step, with scripts

Edit the scripts to suit your tone. Always include the amount, the house number and how to pay.

3 days before: friendly reminder

This is not a chase. It simply helps people plan.

Hello [Name], a reminder that rent of KES [amount] for [House no.] is due on [date]. Pay via Paybill [number], account [House no.]. Thank you.

Day 1: due date

Hello [Name], rent of KES [amount] for [House no.] is due today. Paybill [number], account [House no.]. Ignore this if you have already paid. Thank you.

Day 3: first late notice

Keep it neutral. Many late payments are simple mistakes, like a wrong account number.

Hello [Name], we have not yet received rent of KES [amount] for [House no.], due on [date]. Kindly pay today or reply to let us know when you will pay.

Day 5: phone call

A call often works where SMS does not. Your aim is to find out why the rent is late and get a firm date.

What to say:

• "Hello [Name], this is [your name] from [property/agency]. I am calling about the rent for [House no.]."
• "Is everything okay? Is there a reason it is late this month?"
• "When can you pay the full amount?" Then confirm: "So you will pay KES [amount] by [date]. I will send you an SMS to confirm."

After the call, send the confirmation:

Hello [Name], thank you for talking to us. As agreed, you will pay KES [amount] for [House no.] by [date].

Write down every promise. If a tenant breaks two promises in a row, move faster through the next steps.

Day 7: written late notice

Now put it in writing. The tone becomes firmer, but stays respectful.

Dear [Name], rent of KES [amount] for [House no.] due on [date] remains unpaid. Please pay in full by [date, about 3 days later]. If you are unable to, contact us before then to discuss a payment plan. [Late fee line, only if your lease allows it.]

Day 10: agree a payment plan or a date

If the tenant has a real problem, such as a job loss or a delayed salary, a payment plan can get you more money than a long dispute. Keep plans short and clear:

• Put it in writing and have both sides sign or confirm by SMS.
• Keep it short, ideally clearing the arrears within one to two months.
• Current rent must still be paid. The plan covers the old debt, not the new month.
• Set fixed dates and amounts. For example, "KES 7,000 on the 15th and KES 7,000 on the 30th."
• Say what happens if a payment is missed. The plan ends and the process continues.

Script:

Hello [Name], as agreed, you will clear arrears of KES [amount] as follows: KES [x] by [date] and KES [y] by [date]. Next month's rent of KES [amount] remains due on [date]. If a payment is missed, this plan ends. Please reply YES to confirm.

Day 14: formal demand letter

If there is no payment and no plan, send a formal demand letter. Include:

• Tenant name and house number
• Total amount owed, with a breakdown by month
• A deadline to pay (for example, 7 days)
• What you will do if they do not pay

Deliver it in a way you can prove, such as by hand with a signed copy, by email, or both. Keep a copy.

Day 21: final notice

Dear [Name], despite our earlier notices, rent arrears of KES [amount] for [House no.] remain unpaid. Unless full payment or an agreed plan is in place by [date], we will refer this matter for legal action without further notice.

Only send this if you really will act. Empty threats teach tenants to ignore your notices.

Day 30: legal step

At this point, talk to a lawyer or a qualified property manager about your options. Depending on the type of tenancy, this may include recovering the debt through the courts or ending the tenancy with proper notice. The correct process and notice periods differ by tenancy type, so get advice before you act.

What not to do

Some common "quick fixes" can land you in legal trouble and make recovery harder. Avoid:

• Locking a tenant out or changing the locks
• Cutting off water or electricity
• Removing doors, windows or the roof
• Taking a tenant's belongings yourself
• Threatening or insulting tenants, or calling them at odd hours
• Sharing a tenant's debt publicly, such as on a notice board or WhatsApp group

Also, do not use the deposit to cover ongoing rent while the tenant still lives there unless your lease clearly allows it. Once it is used up, you have no protection left for damage at move-out.

Track a few simple numbers

You cannot reduce what you do not measure. Each month, check:

• Collection rate: rent collected divided by rent due.
• Arrears by age: how much is 1 to 7 days late, 8 to 30 days late, and over 30 days late.
• Repeat late payers: tenants who are late three months in a row need a direct conversation, not just reminders.
• Broken promises: how many agreed dates were missed.

If most of your arrears are over 30 days old, your follow-up is starting too late.

Tips that make the process stick

• Be consistent. Treat every tenant the same way, every month.
• Automate reminders so they go out even when you are busy.
• Send receipts quickly. Tenants who get instant receipts trust your records and argue less.
• Screen new tenants well. Check income and previous landlord references before move-in. Prevention is cheaper than collection.
• Reward good payers. A thank-you message or priority on repairs costs little and builds loyalty.

See ISHI in action

ISHI helps landlords and agencies in Kenya send automatic rent reminders, match payments, issue receipts and see who owes what in one place, so this 30-day process runs itself.

Book a free demo at www.ishi.digital/contact, call 0116888777 or email hello@ishi.digital.