Refunding overpaid rent at the end of a tenancy

When a tenancy ends with rent paid past the end date, owners can refund the tenant directly (fastest), or have Cubbi run a direct debit and forward the refund (1 to 2 weeks).

When the end date is set, the overpaid amount appears as Overpaid rent on the End Tenancy page, along with a breakdown of how it was calculated. Owners can refund the tenant directly or have Cubbi handle it. Tenants can also contact Cubbi to get a refund moving.

Overpayment can happen for a few reasons. Rent was paid in full for a period that included the end date. A direct debit or rent payment went through before the end date was set. A tenant paid the full amount without realising part of it wasn't owed.

Option 1: Owner refunds the tenant directly (fastest)

The owner sends the overpaid amount to the tenant's bank account, then lets Cubbi know. The money lands as soon as the bank processes it.

  1. Get the tenant's bank details. Cubbi doesn't share these. Message the tenant directly through Cubbi to ask the tenant.
  2. Transfer the overpaid amount from your bank to the tenant's account.
  3. Let Cubbi know. Send us a screenshot of the payment along with the tenant's name and property adress. If you can't include a screenshot, give us the full details: amount, date sent, tenant, and property address.
  4. Cubbi updates the records so all rent records reflect the correct balance.

Option 2: Cubbi initiates the refund (1 to 2 weeks)

The owner asks Cubbi to handle it. Cubbi runs a direct debit on the owner's nominated account, then forwards the refund to the tenant. The owner doesn't need the tenant's bank details. This option is slower because it relies on direct debit processing times, and in some cases bank account verification.

Before requesting: the owner's bank account needs to be added and verified in Cubbi.

To get this moving, contact Cubbi and let us know:

  • The amount to refund
  • The tenant being refunded
  • The property the refund relates to
  • The last 4 digits of the bank account added in Cubbi for us to debit

We'll take it from there.

What happens if the owner doesn't act

Tenants can contact Cubbi to start the refund. We'll reach out to the owner to confirm. If they don't respond within 72 hours, Cubbi will initiates the refund from the owners bank account automatically.

A few things to keep in mind

  • The ~2% service fee on the original payment isn't refunded. Only the overpaid rent comes back. For example, if the tenant paid $700 ($686 rent plus $14 service fee) and $200 of that rent needs to be refunded, they receive $200.
  • Cubbi doesn't store tenant bank details for refunds. For Option 1, the owner asks the tenant directly their banking details.
  • Option 1 is faster. Once the owner has the tenant's bank details, the refund lands as soon as the bank processes it. You just need to notify Cubbi when you make the payment outside of Cubbi so rent records can be up to date.