Rental Arrears
Property Management
Unpaid rent that is overdue — when a tenant fails to pay rent by the due date.
Full Explanation
Rental arrears occur when a tenant does not pay rent on time. Each state has different rules about when a breach notice can be issued (typically 7-14 days overdue) and the process for escalation to tribunal or eviction. Persistent arrears are one of the most common issues for landlords and can significantly impact cash flow, especially for negatively geared properties where the investor relies on rent to cover expenses.
Example
Your tenant misses two weeks of rent ($1,100). Your property manager issues a breach notice giving 7 days to pay. If unpaid, they apply to the tribunal for a termination order.
Frequently Asked Questions
Can I claim rental arrears as a tax deduction?
You cannot deduct rent that was never received. However, if you have landlord insurance that covers rental default, the insurance premiums are deductible. Some policies cover up to 6 weeks of lost rent.