rent arrears
📖 What is rent arrears? Meaning and definition
Rent arrears occur when a tenant fails to pay their rent as agreed in their tenancy agreement. This can lead to a landlord applying to the Tenancy Tribunal for an order to recover the outstanding amount. In some cases, if the rent is significantly overdue, such as at least 21 days in arrears, the landlord may also apply for the tenancy to be terminated.
When a landlord applies for rent arrears, they typically provide rent records to the Tenancy Tribunal to prove the amount owing. The Tribunal will then consider this evidence. If the tenant can show they have made a payment that clears the arrears, even if it's just before the hearing and hasn't yet shown in the landlord's account, the application for arrears may be dismissed.
It's important to note that while rent arrears usually refer to money owed by a tenant to a landlord, there can also be situations where a landlord might owe a tenant for rent arrears, as seen in cases where a tenant is awarded a refund of rent. The Tenancy Tribunal makes a determination based on the evidence presented by both parties, calculating the total amounts owed by each to arrive at a net award.
📋 Requirements
- Rent must be unpaid by the tenant.
- The amount of unpaid rent needs to be proven, often through rent records.
- For tenancy termination, rent must be at least 21 days in arrears when the application is filed.
📝 Procedure
- Landlord files an application with the Tenancy Tribunal for rent arrears.
- Both parties attend a hearing, either in person or by video.
- Landlord provides evidence, such as rent records, to prove the amount owing.
- Tenant has an opportunity to present evidence, such as bank receipts, to show payments made.
- The Tenancy Tribunal considers the evidence and makes an order for payment or dismissal of the application.
💡 Examples
- A landlord applied to the Tenancy Tribunal for $5,944.28 in rent arrears, leading to the termination of the tenancy and an order for the tenants to pay the outstanding amount.
- An application for rent arrears was dismissed after the tenant provided a bank receipt showing a payment made the day before the hearing, which cleared the outstanding rent.
- A tenant was awarded $1,180.00 for rent arrears owed by the landlord as part of a cross-application at the Tenancy Tribunal.
- A landlord sought termination of a tenancy because the rent was at least 21 days in arrears on the date the application was filed.
❓ Frequently asked questions
What happens if I pay my rent arrears just before a Tenancy Tribunal hearing?
If you make a payment that clears your rent arrears just before a hearing, and you can provide proof of this payment (like a bank receipt), the Tenancy Tribunal may dismiss the landlord's application for arrears, even if the payment hasn't yet shown in the landlord's account.
Can my tenancy be terminated because of rent arrears?
Yes, if your rent is at least 21 days in arrears when the landlord files an application with the Tenancy Tribunal, the Tribunal can order the termination of your tenancy in addition to ordering you to pay the outstanding rent.
How does a landlord prove rent arrears at the Tenancy Tribunal?
Landlords typically prove rent arrears by providing rent records to the Tenancy Tribunal. These records show the history of payments and the amount that is currently owing.
Can a landlord owe a tenant 'rent arrears'?
While 'rent arrears' commonly refers to a tenant owing a landlord, the Tenancy Tribunal can order a landlord to pay a tenant for rent arrears, for example, as part of a refund or a net award in a cross-application.
What should I do if my landlord claims I have rent arrears but I believe I don't?
You should gather all your payment records, such as bank statements or receipts, to demonstrate that you have paid the rent. Presenting this evidence to the Tenancy Tribunal is crucial for your case.