Rental arrears means the tenant owes rent that has not been paid by the due date. If rent is due on Monday and the tenant has not paid by Tuesday, they are technically in arrears. The amount of arrears is the total unpaid rent accumulated over time.
Arrears is one of the most common issues landlords face. A tenant might fall behind by a few days due to a pay cycle mismatch, or they might accumulate weeks or months of unpaid rent due to financial hardship or other issues.
What You Can Do About Arrears
Each state has a defined process for dealing with rental arrears:
- Informal contact: most property managers or landlords start with a phone call or message to check in and remind the tenant that rent is overdue
- Formal notice: if rent remains unpaid, you issue a formal breach notice (sometimes called a notice to remedy breach). The required timeframe varies by state, but it is typically 14 days
- Tribunal application: if the tenant still does not pay or make a satisfactory arrangement, you can apply to the relevant tribunal for a termination order and/or an order for the tenant to pay the outstanding amount
- Bond claim: at the end of the tenancy, you can claim unpaid rent from the tenant's bond
The exact notice periods and processes differ across states. Check your state guide for specifics. Acting quickly when arrears first appear is important, as small problems are easier to resolve than large debts.
Preventing Arrears
Thorough tenant screening before approving a tenancy is the best prevention. Checking employment, income, rental history, and references helps you identify tenants who are likely to pay reliably. Setting up automated payment reminders also helps. For more on handling tenant problems, see our guide to dealing with problem tenants.
Why It Matters for Landlords
Rental arrears directly affect your cash flow and can create financial stress, especially if you are relying on rent to cover mortgage repayments. Keeping close track of when rent is due and when it is received allows you to act early if a problem develops.
propkt tracks rent payments and outstanding balances for each tenancy, so you can see at a glance whether any tenant is behind on rent.