As a tenant in New South Wales, paying rent on time is one of your most important responsibilities. However, sometimes circumstances may make it difficult to pay rent on time, and this can lead to rent arrears. In this article, we will explain what rent arrears are in New South Wales and the implications if rent is not paid.
What are Rent Arrears?
Rent arrears occur when a tenant fails to pay their rent on time. This can be due to various reasons, such as financial difficulties, job loss, or unexpected expenses. Rent arrears are a serious issue for both tenants and landlords, and it is essential to take action to resolve the situation as quickly as possible.
Implications of Rent Arrears
If rent arrears are not addressed, they can have serious implications for tenants and landlords.
Termination of Tenancy: If you are a tenant and you fall too far behind on rent payments, your landlord may take legal action to evict you through a tribunal hearing. This can be a stressful and difficult process, and it can result in a negative impact on future rental applications.
Damage to Rental History: If you have a history of rent arrears, it can make it more difficult for you to secure future rental properties. Landlords will often check rental history before accepting a new tenant, and a history of rent arrears may cause them to reject your application. Your information may be reported in the TICA database where any rental defaults or breach of tenancy is recorded for property managers to access when screening rental applications.
Loss of Rental Income: Falling behind on rental payments can cause a loss of rental income for landlords, which can impact their financial situation and make it more difficult to maintain the property or pay off a mortgage.
What to do if you are in Rent Arrears
If you find yourself in rent arrears, the best course of action is to speak with your landlord or property manager as soon as possible. It may be possible to negotiate a payment plan or come to a solution that works for both parties. Additionally, tenants can seek advice from the Tenants' Union of New South Wales or other legal services.
In conclusion, rent arrears can have serious implications for both tenants and landlords in New South Wales. It is essential to take action to address the situation as soon as possible to avoid expensive repayments and potential legal action.
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