Understanding the consequences of late rent


At M.E. Property we are passionate about our tenants understanding the consequences of late rent and how it can affect their current and future renting needs.

So what are the consequences? Let us explain.

Firstly, all your rental payments are receipted into a ledger which is a document detailing how much rent you have paid and the date. In addition most software used by agencies will also record all forms of reminders sent by the agency regarding rent and water arrears.

How does that impact you?

When applying for another rental property the first item we are asked to provide is a copy of your rental ledger, if the ledger shows irregularities in your rent and water payments and documents constant reminders, your application is going to be less favourable than an application where there is no history of rent arrears.

At M.E. Property we only approve applications where we have evidence that the applicant has paid their rent on time.

What do I do if I know my rent will be late?

If in the unlikely event you cannot pay your rent on time you are required to contact our office immediately to make arrangements. It is preferred that you contact us at least 2-3 days prior. We will make contact with the owner to explain the circumstances as it is very likely they will be relying on that payment to meet mortgage repayments and or other commitments.

We recommend you exhaust all other avenues to source your rent payment should you be having difficulty making the payment on time.

Our rent and water arrears policy

  • Day 1 – Friendly sms reminder
  • Day 2 – Telephone call and owner notified
  • Day 3 – Telephone call and email
  • Day 4 – Continuous contact until payment is made
  • Day 7 – Personal visit

At M.E. Property we take rent arrears seriously and follow strict protocol. In the event that we reach Day 16 you will immediately be issued a Form 2 Notice to vacate, if you do not comply with this notice we will proceed to apply to the tribunal for an eviction and vacant possession.

If throughout your tenancy you have been consistently late with your rent or been issued a form 2 Notice to Vacate it is our company policy to recommend to the owner that they do not renew your lease at the end of the agreement.

What happens if I am evicted by an order of the tribunal for rent/water arrears?

Your bond will be released to the owner and you will be responsible for all additional costs. If the bond is not sufficient the matter can proceed to the Magistrates court for recovery.

What if the bond is from Housing SA?

It is important to note that Bond guarantees from Housing SA are recoverable. Housing SA will proceed with recovery of the bond through debt recovery services. This can have an impact on your credit rating.

What happens if a landlord makes a claim on their landlords insurance? Is it recoverable?

Most landlord insurance policies retain the right to recover from the tenant any claim made by the landlord against the tenant. This could prove to be very costly particularly if the premises has been left in poor condition.

So we can maintain a good working relationship with all our clients we encourage tenants to always pay their rent on time and to communicate with us regarding any financial hardship.