What is the new process for repeated late or non-payment of rent?

One of the frustrations with rental provider is the rent arrears . And reform starts from 29 March 2021 may help those rental provider to reduce their headaches.

Previously

• A rental provider could give a renter a 14-day notice to vacate when 14 days or more rent was owed. VCAT could dismiss the application, but it was not clear when VCAT was required to do so.

• When making a decision of applying for a possession order, VCAT was able to consider the appropriateness of a payment plan but was unable to refer the renter to a financial counselling service for assessment.

• A rental provider could only apply to VCAT for a compensation order if the renter had failed to pay the full amount of rent for at least 14 days. If a partial payment had been made a compensation order could not be sought

What's New

• New ‘strike’ system is applied to help VCAT members to make decisions. If a renter has received four notices in a 12-month period, they will accrue ‘4 strikes’ against their name. If no more notices are received during that period, the strikes will be cleared when the 12-month period ends. However, if a fifth or subsequent notice is given in the same 12-month period, the rental provider may apply to VCAT for a possession order at the end of the 14-day notice period, and VCAT may issue the order even if the renter pays the outstanding rent within the 14-day notice period. Further, VCAT cannot dismiss the application solely on the grounds that the renter could pay off the unpaid rent under a payment plan.

• In deciding whether to place the renter on a payment plan, VCAT may refer the renter to a financial counselling service for assessment of their ability to comply with a payment plan.

• If the renter has paid the rent at least 14 days late on two previous occasions, the rental provider will not be required to wait for the rent to be at least 14 days overdue before applying to VCAT for a compensation order.

Hileon's Property Managers will conduct daily rent status check to ensure as few as rent arrears occasions in the properties lease term would ever occur.