In terms of accounts last years rent is recorded as an outstanding expense. It is considered as a liability; since it is something that has to be paid. Since rent that has to be paid is a liability it is recorded on the liability side of the balance sheet. When this is paid, the amount is deducted from the liability side and recorded in the Profit and loss account. Practically speaking, you will have to approach your land lord to make sure that he is not averse to you continuing to reside in his property. This may involve you making a commitment to pay a few months in advance; henceforth. If matters have reached the eviction stage, your paying or not paying the same may prove to be of little consequence to your landlord.