As soon as a tenant is behind in rent, a breach notice should be issued immediately to prevent further loss.
NOTE: a breach notice cannot be issued until the tenant is a certain
number of days behind in payments. This number varies depending on the location
of the property.
So, when can I
issue a breach notice for rent default?
This is when you can issue a breach notice in your state:
- Queensland –If your tenant
falls more than seven days behind in rent, you can issue a notice to remedy breach (form 11), giving
them seven days to catch up in payments.
- Western Australia –If
your tenant falls more than one day behind in rent, you can issue a breach notice for non-payment of rent (form 21), giving
them 14 days to catch up in payments.
- Victoria and New South Wales –In
VIC and NSW, there is no formal breach notice for rent default. However,
you can (and should) notify the tenant on the first day of the arrears,
giving them 14 days to catch up on payments. NOTE for those in NSW: Due to
COVID-19, a six-month transitional period (following the moratorium on evictions) has been initiated. This may impact your ability to issue breach notices and evict a tenant if their hardship is due to the pandemic. Here you will find more information.
- South Australia –If
your tenant falls more than 14 days behind in rent, you can issue a notice to tenant to remedy breach of agreement (form 2), giving them seven days to catch up in payments. NOTE: If the tenant is unable to pay rent due to the implications of COVID-19, a moratorium on evictions remains in place until 31 May 2021. Here you will find more information.
- Northern Territory –If your
tenant falls more than 14 days behind in rent, you can issue a notice to remedy unpaid rent (form RT03), giving
them seven days to catch up in payments.
- Australian Capital Territory –If
your tenant falls more than seven days behind in rent, you can issue a notice to remedy breach, giving them 14 days
to catch up in payments.
- Tasmania –If your tenant
is 14 or more days behind in payments, you can terminate the agreement by issuing a notice to vacate, giving them 14 days to catch up on payments.
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Jason Gwerder
Monday, 24 May 2021