Rent arrears are uncomfortable for everyone. They put tenants under stress, they hit landlord cash flow, and they can move very quickly through the legal process if they're not addressed. Here's what the NSW process actually looks like, and what we'd advise either side to do.
The 14-day rule
In NSW, once a tenant is 14 days or more behind in rent, the landlord (or agent) can issue a termination notice for non-payment of rent. This is a formal notice, not a casual reminder. It gives the tenant 14 days to either pay the arrears in full or vacate.
If the tenant pays the arrears within the notice period, the tenancy continues. If they don't, the landlord can apply to NCAT for a termination order.
What if the tenant pays partially?
Partial payments don't reset the clock if the property remains in arrears. The notice can still proceed. But in practice, most landlords (and any reasonable agent) will work with a tenant who's making genuine efforts.
NCAT termination orders
If a landlord applies to NCAT, the Member will look at:
- The arrears history (one-off vs repeated)
- Whether genuine attempts to pay have been made
- The reason for the arrears (job loss, medical, etc.)
- Whether the tenancy is otherwise compliant
The Tribunal can:
- Terminate the tenancy and order vacancy
- Decline to terminate but order payment of arrears
- Order a payment plan with conditions
Tenants who have a long history of rent arrears, even if they've paid each one off, are in a more vulnerable position than first-time situations.
If you're the tenant
The single most important thing: communicate early. The week you realise you're going to be short, contact your property manager. You're not alone — most agents have seen every situation imaginable, and most landlords would prefer a paying tenant on a payment plan over an empty property.
Other things that help:
- Have a real plan. "I get paid Friday, I'll pay $X then and clear the rest by the end of the month."
- Document the conversation. Email confirmations protect everyone.
- If your circumstances are genuinely changed (job loss, medical, family emergency), say so. Hardship is a real factor.
What hurts your position: silence, broken promises, and disappearing.
If you're the landlord
A few principles we apply:
- Move quickly but humanely. Day-15 follow-ups should always start with a phone call before any notice is issued.
- Document everything. Ledger, communications, attempts to contact.
- Don't let arrears compound. A four-week arrears situation is harder to recover than a two-week one.
- Lean on us. This is exactly what your property manager is for.
What about hardship grounds?
NSW has provisions for tenants experiencing serious hardship to apply to NCAT for variation of obligations — but this is a Tribunal process, not something a tenant can simply declare. If hardship is the situation, getting advice early is the right move.
Don't try to skip the process
Self-help evictions — changing locks, cutting utilities, removing belongings — are illegal. Even if you're 100% in the right on the arrears, doing this can leave you with damages owing the other way.
If you're with Hunter PM, talk to us first. We resolve most arrears situations without ever touching NCAT.