The management of rent arrears is a key property management function and without early and frequent attention can quickly run out of control. The Residential Tenancies Act is specific about the action which may be taken in instances of non-payment of rent and when a notice to vacate may be given for this reason.

When can a notice to vacate be given?

As detailed in section 91ZM of the RTA, a notice to vacate may be given when 14 days or more of rent is owed. The termination date must not be less than 14 days after the notice is given. However, a “strike” system applies. On the first 4 occasions, if the unpaid rent is paid on or before the termination date the notice is of no effect.

If the matter is taken to VCAT for a possession order VCAT will have no choice but to dismiss the application.

However, if the renter fails to pay rent as required before the termination date on those or on a fifth occasion in the same 12-month period, the rental provider may give a notice to vacate and apply to VCAT for a possession order.

The twelve-month period starts either on the date the rental agreement commenced or the anniversary of that date.

When are renters notified of arrears?

First National Real Estate Neilson Partners renters are notified of any outstanding balances regularly, using emails, letters, text messages, and phone calls.

Our property managers make a particular effort to encourage and receive payment as quickly as possible from renters to avoid any stress and financial strain on our Rental Providers.

Whilst we, like most providers, are sympathetic to struggles and unusual circumstances, it is important to act diligently to avoid protracted arrears events.

Renters have substantial opportunity to pay their rent before a notice to vacate is issued

As stipulated above, the Act allows for generous leeway when it comes to arrears and provides renters with substantial opportunity to make payment prior to official action being taken.

Couple this with protection insurance policies being voided if timely action is not taken, and owners can be left vulnerable when arrears are allowed to accrue and appropriate actions are not instigated.

The best approach is to work closely with clients in hardship to achieve a positive result and professionally utilise the support of the resources provided under the Act if required.

Diligence is key.

Contact your local First National Property Management team in Narre Warren, Berwick, and Pakenham today