A Rent Payment Plan Letter is utilized when a tenant has fallen behind on rent payments and both parties wish to establish a formal arrangement for clearing the arrears. This document, governed by English and Welsh law, provides a clear framework for repayment while maintaining the tenancy relationship. It typically includes details of the outstanding amount, agreed payment intervals, payment amounts, and the duration of the plan. The letter serves as a formal record of the agreement and can be referenced in any future legal proceedings. It should comply with relevant housing legislation and consider both parties' circumstances while ensuring the repayment schedule is realistic and achievable.

1. Date and Address Details: Current date and full contact details of both parties

2. Reference to Original Tenancy: Details of the existing tenancy agreement and property

3. Current Arrears Status: Statement of total amount owed and how it accumulated

4. Payment Plan Terms: Specific payment amounts, dates, and method of payment

5. Duration of Plan: Start and end dates of the payment plan