How and when to pay rent

Payment of rent by a tenant

Tenants are responsible for paying the rent on time and continuing to pay the rent until the tenancy ends.

The residential tenancy agreement sets out how much rent the tenant needs to pay, how often and for how long.

How and when to pay

Landlords and agents need to offer bank transfer as a way to pay rent without additional fees.

In future, landlords and agents will also need to offer rent payment via the Commonwealth Government’s Centrepay.  

Landlords and agents will not need register for Centrepay unless the tenant has chosen to pay by that method. More information will be provided on the Fair Trading website before the requirement to offer Centrepay starts. 

If both the tenant and landlord agree, the tenant may pay rent using other options.  

Tenants cannot be required to use a particular service provider, such as an app, to pay their rent.  

Landlords and agents:

• can ask tenants to pay rent up to 2 weeks in advance, but no more.
• cannot ask for further rent payments until the end of the period for which rent has already been paid.

Tenants need to: 

• pay rent on or before the day set out in the agreement. Payments might be required weekly, monthly or fortnightly.

Learn more about paying rent in advance.

Keep a record of rent payments

Tenants should keep receipts or records of rent payments. More information is available on the rent receipts page.

If a tenant can't pay rent

As a tenant it's important to always pay your rent on time, even if you're unhappy with something in your tenancy.  

This includes:

• if your landlord or agent is not getting repairs done
• if the cost of your rent is being increased.  

Learn more about your options if you’re not able to pay rent due to hardship.

Tenants, landlords and agents can contact NSW Fair Trading for assistance.  

Tenants can also get legal advice, assistance and information from the Tenants’ Union of NSW 

If a tenant cannot pay rent due to hardship

Tenants experiencing hardship and who are struggling to pay rent should tell their landlord or agent as soon as possible. That way both parties can try to negotiate a repayment plan. The agreed repayment plan should be made in writing and signed by both parties to reduce misunderstandings or disputes over what was agreed.

There are additional resources available to help tenants and landlords experiencing hardship.

If a tenant does not pay the rent

Not paying the rent, or being behind in rent payments is a breach of the rental tenancy agreement. If a tenant is 14 days late with rent, the landlord can give them a termination notice. This could also make it harder for the tenant to rent another property in the future.

There is a general guarantee the tenancy cannot be terminated if the tenant pays the outstanding amount or they are following a repayment plan agreed with the landlord.

If a tenant has already paid their rent arrears but they have received a termination notice or the Tribunal has terminated their agreement for rent arrears, then this usually means they do not have to leave.

However, this guarantee may not apply if the tenant is often late with paying rent and/or water usage or other charges

Landlords and agents cannot list a tenant on a tenancy database just for falling behind on a rent payment, but there are other related circumstances where they might. Find out when landlords can list tenants on a tenancy database.

If a tenant is frequently late paying rent

If a tenant is frequently late paying rent (and/or water usage charges), the landlord or agent can apply to the Tribunal to make an order that the tenancy should end and apply for orders for any outstanding rent or other costs.