Tenants who are frequently late paying rent or utility charges

Key information

• There is a ‘general guarantee’ that a tenancy cannot be terminated due to late payment of rent, water or other utility charges if a tenant catches up with payments or are following a repayment plan agreed with the landlord.
• However, where the tenant frequently pays rent, water usage or other utility charges late, a landlord can apply for a termination order to end the tenancy.

If tenants catch up with their rent

There is a ‘general guarantee’ cannot be terminated due to late payment of rent, water or other utility charges if:

• a tenant catches up with payment of the water usage or utility charges and any rent owing, or
• a tenant is following (and complying fully with) a repayment plan agreed with the landlord.

Note that if this happens after:

• a landlord has applied to the NSW Civil and Administrative Tribunal (NCAT), then the Tribunal cannot make a termination order and the tenancy will continue
• the Tribunal has given a termination order and the tenant has not vacated the property, the tenancy will continue. This means a landlord will not be able to enforce the order even if they already obtained a warrant for possession.

When a termination order may be made for frequently late payments

The exception to the guarantee of a tenancy not being terminated is where the tenant frequently pays rent, water or other utility usage charges late.

In this particular exception to the general guarantee, the Tribunal can make a termination order on the basis that the tenant has frequently failed to pay rent, water or other utility usage charges that are owing, even if the tenant pays the charges they owe.

A landlord will need to provide evidence to the Tribunal, such as:

• rent records
• reminder letters sent to the tenant, or
• previous applications to the Tribunal about rent or other charges.

If the Tribunal finds the tenant has frequently failed to pay, they can order the end of the tenancy, even if the tenant has completely caught up on rent, water usage and utility charges.