Rental agreement

My tenant has stopped paying rent – what can I do?

When entering into a leasing contract, rent is an essential term – and must be paid on time by the tenant as part of the tenancy agreement. When the tenant has failed to pay the rent when it is due, they are in rent arrears. 

But what happens when your tenant stops paying rent? What are your options as an owner, and what is the best course of action?

NSW Civil and Administrative Tribunal

In circumstances where your tenant is frequently a few days late with their rental payments, an application can be made to the NSW Civil and Administrative Tribunal for an order for the tenant to comply with the terms of the tenancy agreement.

There are a number of General orders that you may find relevant, such as 187(1)(a) and 187(1)(b) – although as every situation is different, Coleman Greig strongly advises you to look into the range of orders that landlords can request mid-tenancy.

Termination Notice

If the tenant has not paid rent for more than 14 days from the date that it was due, you as the landlord do have the option to serve a termination notice. The notice must be in writing and both signed and dated by your agent. It must have the tenant address, and include the following:

  • The day by which the tenant is to vacate the premises by (at least 14 days’ notice is required)
  • The grounds for giving the notice – in this case, the non-payment of rent for at least 14 days 
  • A statement making clear to the tenant that if they have paid all of the owing rent, or that if they agree to enter into a repayment plan agreed upon by the owner, then they do not have to vacate the property.

Depending on the circumstances, it may be relevant for you as the owner to submit an application for orders 187(1)(a), 187(1)(b) and 187(1)(c).

Repayment plan

In circumstances where the tenant genuinely intends to pay back the owing rent, a repayment plan can be entered into and must be agreed upon by you as the owner.

For more information on what to do if your tenant has stopped paying rent, please contact:

Share:

Send an enquiry

Any personal information you provide is collected pursuant to our Privacy Policy.

Categories
Archives
Author

More posts

Festive season: Managing public holiday work obligations

Employers are gearing up for a run of public holidays. Provisions requiring an employee to work on a public holiday in certain circumstances have been commonplace and not overly concerning. However, the Federal Court recently held that such a provision contravened the National Employment Standards.

Employers should exercise caution when dismissing during probationary period

Can you dismiss an employee during the probationary period? Yes, but a recent case is a lesson in caution. The recent Federal Court decision of ‘Dabboussy v Australian Federation of Islamic Councils’ is a warning to employers to consider the importance of timing if dismissing an employee during probation.

The business impacts from the Government’s new cyber security laws

Cybercrime ‘is a multibillion-dollar industry that threatens the wellbeing and security of every Australian’. In an effort to combat the impact on businesses and individuals, the Australian Government has introduced cyber security legislative reforms into the Parliament.

A guide to intrafamily adoption

Adoption is the process where a parent’s legal rights for their child are transferred to another person. The formal adoption of a stepchild or close relative is known as intrafamily adoption.

Passenger movement and visa data-matching by the ATO

Heading overseas for work or a holiday? Taxation issues, including tax residency, should be on front of mind when departing from or arriving to Australia. Why? Because the Australian Taxation Office (ATO) can follow your footprints and, if you’re not careful, spring unexpected taxes on you.

Is it really necessary for my executor to have so many powers?

People often question why the executor of their estate needs to have so many powers. Simply put – if your executor isn’t given any additional powers by your Will, then they are limited to what is set out in the Trustee Act. One area that this can lead to issues in, is the family home – particularly if beneficiaries aren’t in agreement.

Essential terms of a commercial lease

A commercial lease is a contract that details the rights and obligations of a tenant and landlord. So, what are the necessary terms of a commercial lease?

Responding to data breaches

In the final part of our four-part series on your business’ responsibilities related to cyber attacks and data breaches, Special Counsel John Bennett how businesses should respond to data breaches, including application and requirements of the Notifiable Data Breaches Scheme.

© 2024 Coleman Greig Lawyers  |  Sitemap  |  Liability limited by a scheme approved under Professional Standards Legislation. ABN 73 125 176 230