What happens when you pay your rent late
When you’re renting, it’s important to pay your rent at the time and in the manner that you have agreed on which is usually stipulated in the terms of your Lease Agreement.
When you’re renting, it’s important to pay your rent at the time and in the manner that you have agreed on which is usually stipulated in the terms of your Lease Agreement. If you don’t pay your rent on time, you run the risk of getting evicted which can also affect your credit rating status.
Generally speaking, you will be paying the rent in advance, so if paying monthly, your rent will cover the month that follows the day your rent is paid.
If your rent is in excess of 14 days in arrears your landlord can issue a 14 day notice to vacate.
Property manager Jayde Lewis advises tenants who have fallen behind on rent and are having difficulty managing their payments to contact their property manager as soon as possible.
‘Be proactive and transparent with the Property Manager as we can often discuss and put a plan in place that works for everyone,’ she says. ‘We’re here to help both you and your landlord.’
If you’re consistently behind on your rent, you might be able to arrange with your property manager to change your rent payment schedule to better suit your financial needs or downsize into a more affordable property.
If you do not adequately respond to the notice to vacate within 14 days, your landlord can go to the Victorian Civil and Administrative Tribunal (VCAT) to seek a possession order.
Communication is the key when your rent payment arrangements aren’t meeting your needs.
If VCAT grants the landlord the possession order, the landlord can then purchase a Warrant of Possession and the police can come and evict you from your home.
Jayde says late rental payments affect any future references you may require from your property manager and landlord. ‘Late payments, especially when tenants don’t face up to the fact that they’re overdue, indicate an inability to be reliable and we can’t give people references on that basis.’
Marshall White will contact tenants if their rent is more than four days overdue. ‘There’s always the assumption it’s an accident first and we try to help the tenant get back on track,’ Jayde says.
Communication is the key when your rent payment arrangements aren’t meeting your needs. Speak to your landlord or property manager as soon as you think you may not be able to pay your rent on time and make sure that you work together to come up with another way to manage your rent payments.