Experiencing hardship during a tenancy
What can be done if a tenant or landlord is experiencing hardship with continuing a tenancy or keeping up with paying rent.
If a tenant is experiencing financial difficulty and is struggling to pay rent, they should tell the landlord or agent as soon as possible. That way both parties can try to negotiate a repayment plan.
The agreed repayment plan should be in writing and signed by both parties to reduce any misunderstanding or disputes over what was agreed.
Avoiding termination of tenancy for non-payment
There is a general guarantee that a tenancy cannot be terminated due to late payment of rent or utility charges, as long as the tenant pays all owing rent and charges and continues to pay rent and charges on time. The exception to this guarantee is where the tenant is frequently late with rent or utility charges.
Support with paying rent
- There are organisations that can help or provide support to tenants. For example, Centrelink offers a free direct bill-paying service (called Centrepay) to customers receiving payments from Centrelink. This service includes rent paid to social housing providers and private landlords.
- The Department of Communities and Justice (DCJ) Housing also offers eligible tenants financial help to keep a tenancy.
- There may be other types of rent assistance available to tenants
Get more information about help with rent and moving costs.
The Cost of Living Hub can help with ways to save and resources to help with other costs of living (like emergency food relief).
Tenants having trouble paying utility bills
Tenants can apply for Energy Accounts Payment Assistance (EAPA) at Service NSW. EAPA vouchers can help you pay for your current residential electricity or gas bills if you're in a short-term financial crisis or emergency.
Apply for Energy Accounts Payment Assistance (EAPA) vouchers.
What happens if a tenant does not pay the rent
Not paying the rent, or being behind in rent payments may mean a tenant is given a termination notice, which could make it harder for the tenant to rent another property in the future.
See our page about non-payment of rent for more information.
Ending a tenancy on hardship grounds
If a tenant under a fixed term agreement believes that they would suffer undue hardship if the tenancy continues, then the tenant can apply to the NSW Civil and Administrative Tribunal to end the tenancy on hardship grounds. No prior notice is required. A tenant can ask for an urgent hearing but will need to keep paying the rent.
Landlords can also end a tenancy on hardship grounds
The Tribunal will decide whether to end the tenancy based on individual circumstances. It is up to the tenant or landlord who is claiming hardship to explain the situation and provide evidence to the Tribunal that there are grounds for ending the agreement. Learn more about a landlord ending a tenancy with or without grounds.
Examples of hardship
Examples of hardship may include where:
- a tenant has lost their job and is unable to pay the rent
- a tenant is forced to relocate for work
- a tenant or landlord is suffering severe physical or mental illness and cannot continue with the tenancy.