What to do if your tenant starts falling behind in rent – Tip 5

Repayment plans

I don’t like repayment plans but they do show the tenant you care. It also helps to demonstrate to the tribunal and to your landlord insurance company you have tried to minimise the loss of rent.

When creating a payment plan you have to be practical and reasonable so the tenant can actually stick to it.

To avoid any misunderstandings this should be in writing and very specific.

For example:

Repayment Plan – 22 Smith Street, Exampleville

The tenant Robert will pay $100 per week for the following 6 weeks starting from Friday the 20th of May 2015. This is on top of his monthly rent of $1,345 due on the 21st of each month.

To be clear here are the payment due dates:
20 May – $100
21 May – $1345 (normal rent)
27 May – $100
3 June – $100
10 June – $100
17 June – $100
21 June – $1345 (normal rent)
24 June – $100
21 July – $1345 (normal rent payments continue from here)

Failure to pay the agreed amounts on or before the due date may prevent another payment plan being offered again.

Signed by Robert.

(or get the tenant to email this to you in writing to show they have agreed to this)

Check out the next blogs on What to do if your tenant starts falling behind in rent


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Jason Gwerder
Thursday, 3 September 2020

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