Update: 20 October 2019
Cubbi does not recommend Payment Plans for the vast majority of cases so although we can facilitate a payment plan but there are no options from your Cubbi dashboard.
Why the change? They simply don't work. We found only when the tenant was genuinely behind in rent due to unexpected, unforeseen circumstances they were able to get the rent paid back up and continue the tenancy. For nearly all other cases the Payment Plan only delayed the termination process, causing the owner more stress, more loss of rent and the tenant a larger rent debt. This is not fair on anyone. If you're unsure about going on a payment plan talk to us.
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.
Example of Payment Plan
Normal ongoing rent payments: $1,000 per Fortnight. Due every second Friday.
Additional rent payments (Payment Plan): $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 but enough that the rent is paid up to date within 2 months. If this is not possible a payment plan should not be undertaken by the owner and instead follow proper termination process in most
- These additional payments must be negotiated between the owner and tenant and signed in Cubbi.
- Cubbi may automatically deducts the additional rent payments . (check signed payment. 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 help the tenant get the rent paid up prior to termination. This can be important for Tribunal (if you have to go).
How to start a Payment Plan
You can start a Payment Plan anytime the tenant is behind in rent however as Cubbi no longer recommends payment plans in 99% of cases there is no option in your Cubbi dashboard.
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.