What is a payment plan?
A payment plan is a commitment by the tenant to make additional rent payments on top of their normal ongoing rent payments. These additional rent payments are automatically debited from the tenants bank account.
Example of Payment Plan
Normal ongoing rent payments: $1,000 per Fortnight. Due every second Friday.
Additional rent payments: $50 per week. Due every Monday starting 4th June 2018 until rent is up to date.
More things to know
- The signed payment plan in Cubbi will simulate the additional rent payments for extra clarity.
- Additional payments must be for a consistent amount (e.g. $50) per week, fortnight or month regardless of the frequency of the normal ongoing rent payments.
- We recommend small weekly payments to make it easier for the tenant to commit.
- These additional payments must be negotiated between the owner and tenant and signed in Cubbi.
- Cubbi automatically deducts the additional rent payments. Any failed payment is retried after 24 hours as per the Failed Payment process.
- The owner does not need to agree to any payment plan, however, doing so demonstrates they have has tried to minimise the loss of rent. This is important for Tribunal (if you have to go) and any Rent Default insurance claims.
How to start a Payment Plan
You can start a Payment Plan anytime. Cubbi will automatically suggest a payment plan to everyone when the tenant is 10 days behind in rent as a last attempt before we recommend a termination notice.
The owner and tenant should speak to one another to agree on the payment plan (the additional rent payments). Once agreed the owner must email us email@example.com.
All we need to know is:
- The additional rent amount
- The day/date the additional rent is due
- The starting date (first additional payment)
E.g. $50 per week. Due every Monday starting 4th June 2018 until rent is up to date.
Cubbi will be sent a document to be signed by all owners and tenants before the additional payments start.