If a tenant owes rent and legal action is needed, we may ask the landlord to sign an Assignment of Debt so we can recover the money through formal channels.
If a tenant falls into arrears and we need to pursue the debt through legal channels (such as Money Claim Online), we may ask the landlord to sign an Assignment of Debt. Here’s what that means, why it matters, and how we use it.
What is an Assignment of Debt?
An Assignment of Debt is a simple legal document that transfers the right to recover unpaid rent from the landlord to us (PropMedia Ltd).
This doesn’t affect your ownership of the property or your tenancy agreement. It just allows us to take over the formal recovery of rent that’s owed to you.
Why Do We Ask for It?
To make a legal claim on your behalf, the courts require that the claimant is the party to whom the debt is owed.
Even though your tenant owes you rent, if we’ve paid that rent to you under our rent guarantee, the debt is now owed to PropMedia Ltd, not you. The Assignment of Debt formally confirms that we can take over and pursue that debt in our name.
Without this document, we can’t legally act in court to recover arrears from your tenant or their guarantor.
Why Now?
We’ll only ask for this when:
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We’ve paid you under our rent guarantee but your tenant hasn’t paid us
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We believe there’s a strong case to pursue the arrears
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We’re preparing to submit a claim to the courts or escalate the matter
We aim to keep this process quick and low-hassle, and we’ll guide you through it when needed.
How Do I Complete It?
If we’ve asked you to sign an Assignment of Debt, you’ll receive a copy electronically via email. You can sign it online – no printing or scanning needed.
If you’re unsure about any part of it, just get in touch.
Need Help or Have Questions?
Our Client Accounts Team is here to support you.
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Phone: 01564 492 964 (Mon–Fri, 9am–5pm)
We’ll walk you through the process and answer any questions you have.