Paying rent even a day late can affect your payment history. If tenants apply for other rental properties in the future their rent history record may include a ‘late payment’ breach of tenancy agreement – even if it was just 1 day late!
When you sign your Residential Tenancy Agreement (RTA) the document clearly states that rent must be paid on time or in advance. If you pay rent even a day late you are in breach of your tenancy agreement and can risk termination.
It is important to understand bank processing times to ensure if you pay your rent by BPAY or EFT that you allow at least 1 business day for the funds to transfer.
At the signing of the RTA all tenants are required to pay 2 weeks rent. We always suggest that rent is then paid the following week to ensure there is a small buffer in case of public holidays or issues with pay dates.
Landlords have commitments with their mortgages and to maintain their investment properties so they need the assurance that money will be in the bank in time for them to meet those commitments. And what about when the time comes that you are ready to purchase your first home? Lenders also want to see rent paid on time when considering granting you approval for a home loan In fact most agencies and banks will request a copy of your rental ledger which shows how much rent was paid, what date it was paid, the payment frequency and if it was paid on time.
Paying rent late continually labels you a repeat offender and can result in a hearing before the Tribunal. As a worst-case scenario, paying rent late on a continual basis can result in your lease being terminated and/or your name being placed onto one of the default tenant databases. Once you are on the default database it takes years before your name is cleared.
If you are having problems paying rent on time, it is vital that you communicate with your Property Manager so they may set up a payment plan for you.