WHAT HAPPENS WHEN TENANTS FALL BEHIND ON RENT? A GUIDE FOR LANDLORDS

You check your account and the rent hasn’t come in. You wait a day, then another. Still nothing.

Now what?

Rent arrears are one of the most common causes of stress for landlords—and one of the most common reasons tenancies end up in front of the Tenancy Tribunal. But if handled properly, it doesn’t have to be a crisis.

At Good Neighbours, we have clear systems in place to manage arrears calmly, legally, and effectively—without damaging landlord-tenant relationships or rushing to eviction.

WHEN IS RENT “IN ARREARS”?

Tenants are considered in arrears as soon as they miss a payment, even if it’s just one day late.

But being “in arrears” doesn’t automatically mean the tenancy ends. The Residential Tenancies Act outlines a clear process that must be followed before any legal action is taken.

STEP-BY-STEP: WHAT THE LAW REQUIRES

COMMUNICATE EARLY

A missed payment can be a mistake or a short-term cashflow issue. First, we make polite contact to check in and prompt payment.

ISSUE A 14-DAY NOTICE TO REMEDY

If rent isn’t paid within a few days, we issue a formal notice. This gives the tenant 14 days to pay the overdue amount.

APPLY TO THE TENANCY TRIBUNAL ON DAY 8

1. If the rent is still unpaid on the 8th day, we file a Tribunal application.This early action allows us to front-foot the issue and often leads to faster resolution—whether through:

2. A Mediation or Hearing

3. A Termination and Possession Order

4. A Payment Order or Repayment Plan

   • You don’t need to wait until the arrears hit 14 or 21 days.

   • Making the application early shows the issue is being managed professionally and can prevent deeper arrears from building up.

   • Enforcement through the Courts (if needed)

   • If rent remains unpaid and the tenant has left, enforcement can be pursued through Collections or the Disputes Tribunal.

WHAT THE TRIBUNAL WILL CONSIDER

• Has the landlord followed the proper notice process?

• Is the rent genuinely unpaid?

• Has the tenant made reasonable efforts to resolve the issue?

• Would termination be unjustified hardship?

In many cases, the Tribunal prefers repayment plans if the tenant can demonstrate willingness to catch up. If not, it will usually grant termination.

CAN YOU END A TENANCY AFTER 21 DAYS OF ARREARS?

Yes. If rent is at least 21 days in arrears, landlords can apply for termination without needing to issue a 14-day notice—but this must still go through the Tribunal.

It’s not automatic, and the Tribunal will still assess the tenant’s situation and whether the termination is reasonable.

HOW GOOD NEIGHBOURS HANDLES ARREARS

Our Property Managers:

• Monitor rent daily through our software

• Contact tenants promptly after a missed payment

• Issue formal notices with correct legal wording

• Apply to the Tribunal on Day 8 if rent remains unpaid

• Keep full records to support Tribunal applications

• Represent landlords at hearings and mediation

• Work with both parties to resolve arrears before things escalate

We don’t panic—and we don’t wait. We act early and professionally to resolve rent arrears quickly.

WHAT LANDLORDS SHOULD NEVER DO

• Never change the locks or evict a tenant without a Tribunal order

• Never threaten or harass a tenant for payment

• Never deduct rent from the bond without agreement or Tribunal instruction

• Never delay issuing notices if rent falls behind—timing is crucial

FINAL WORD

Missed rent doesn’t have to mean missed opportunities.

With clear communication and the right process, most arrears can be resolved before they get out of hand.

At Good Neighbours, our systems are designed to protect your cashflow, your property—and your peace of mind.