What happens if a tenant falls behind in rent
Cubbi has two separate processes for getting late rent paid:
When the rent is due Cubbi deducts the rent from the tenant's bank account, if the payment fails everyone is alerted. If no action is taken, Cubbi will auto re-try the payment after 24 hours. This process will continue to loop if the payment keeps failing.
10+ Days Behind in Rent
If a tenant falls a full 10 days behind in rent Cubbi will begin warnings and preparation for termination. Warnings, breach notices and termination notices are different per state, Cubbi will advise depending on your legislation.
A few things to keep in mind:
- Cubbi does not negotiate between owners and tenants. What is due, is due. For example, if the tenant wants to change the day rent is due/deducted this should be worked out between owner and tenant first then the agreed changed in Cubbi.
- Cubbi will continue to follow the processes unless the rent paid or a payment plan is signed by owner and tenant.
- Cubbi does not chase up late rent payments prior to tenancy being on Cubbi. Essentially if you start using Cubbi while the tenant is behind the failed payment process will not kick in.
- Transparent communication is key.
- The further rent gets behind, the harder it is to catch up.