Tenant Rent Arrears Policy
The purpose of this policy is to provide for tenant understanding with regards to rental arrears, including a definition of arrears, tenant obligations and any action that IERHG will take when arrears occur.
Rent must be paid as it falls due. As a rule we require residents to maintain their rent 7 days in advance. Tenants have a legal obligation to pay their rent by the due date. If rent has not been paid by the due date and rent falls more than seven days in arrears, there is a Rental Arrear and the Tenancy Agreement has been breached. If tenants do not pay their rent we will approach the Victorian Civil and Administrative Tribunal (VCAT) for an Order for Possession of the room. If rent remains in arrears, the resident may be evicted. The Residential Tenancies Act sets out the rights and responsibilities of the tenant.
Getting behind in rent payments can be a serious problem for tenants and may place their tenancy at
risk. Rental Arrears can quickly build up to an amount that is very difficult to repay. We will work with our tenants to help prevent them from getting into difficult financial situations. By careful management of rental arrears, IESHG can help people maintain their tenancies.
Our approach is to act quickly on Rental Arrears and to get the tenant back on to a accepted rent
payment cycle as quickly as possible. If tenants fall behind in their rent, we will notify them in writing
usually within one week of the rent being overdue. It is easier to negotiate, resolve and recover small
debts than large ones. IERHG will negotiate suitable arrangements with tenants to repay rental arrears.
Rent payments can be made by automatic rent deductions from Centrelink payments or from bank,
building society or credit union accounts. All tenants, especially those whose payments are in arrears,
are encouraged to use these methods to pay their rent.
What happens when arrears occur?
Tenants must carry on paying their weekly rent and negotiate a payment plan for arrears. This reduces the possibility of the level of arrears increasing to an impracticable level for the tenant. IESHG may use a range of communication methods to assist in the arrears process, including personal visits, official letters and telephone calls.
Tenants may seek further information on the Community Housing Online web site at
All rent arrears and eviction procedures are in accordance with the Residential Tenancies Act.
This policy was reviewed in April 2021. It is scheduled for review by April 2024.