Rent Arrears: Late Paying or Receiving Rent?

Landlords appreciate that from time to time, things get tough, life situations change and money becomes tight. Like tenants, Landlords also experience the challenges of everyday life. That doesn’t mean they have to roll over and watch their investment fail. Because of this, we at Huis Rentals have a Zero Tolerance policy with rental arrears and act straight away. A Notice of Remedy is issued on the 7th day the tenant fails to pay rent, and is the first day legally a lessor can act. From there, further notices and court proceedings are swiftly brought to action to protect the landlord.

For the Tenant

Paying the rent on time is important and failure to do so could ultimately result in being evicted from your home, not to mention the inconvenience and expense of relocating. On top of this you may also jeopardise your good credit rating.

If you find yourself in hardship and unable to pay the rent, take comfort in knowing that most Landlords are understanding and approachable with such matters, particularly if you have been a good long term tenant.

Landlords will have more admiration and tolerance for you if you contact them and explain your situation, rather than skipping payments without a word spoken.

Usually a plan of attack to suit both parties can be discussed and agreed upon until you are in a better situation to fully catch-up outstanding amounts.

This way all parties are happy and your Landlord / Tenant relationship has suffered no damage but rather gained respect.

Landlords, be sure to listen and empathize with your tenants, give them the benefit of the doubt and don’t assume all tenants are out to rip you off.

Tenants be aware that Landlords also have families to feed and if late payments or rent and or rent arrears becomes a regular cycle, your Landlords appreciation and tolerance will be stretched and they will be forced to take the necessary steps in moving you on.

It is important for both Landlords and Tenants to ensure that any agreement made with respect to rent arrears is properly documented in writing.


What is Rent Arrears?

Regardless of whether you have a fixed or Periodical Tenancy Agreement in place, the Tenant is required to pay rent in advance ie. if negotiated agreement states fortnightly rent payments every second Friday, then the tenant must pay on the Friday for the next 2 weeks.

A tenant cannot be charged a fee if the rent is late. If the rent falls more than 14 days (7 days QLD) it is classified as in arrears.

It is important that you deal with it as early as possible.


Landlords: What to do if your tenant is late paying the rent

Always provide written notice.

QLD: If the tenant falls more than 7 days behind in rent, you must isssue them with a Notice to Remedy Breach (Form 11) giving them 7 days to pay the rent. If the tenant pays the rent within the 7 days, the tenancy agreement will continue. If the tenant doesn’t pay, you can issue them with a Notice to Leave (Form 12) giving them at least 7 days to vacate.


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