With rising interest rates, the cost of living biting hard, and economic uncertainty on the horizon, rent arrears are becoming more common in 2025.

According to Tenancy Services data for Q4 2022, 75% of the 4,387 landlord applications to the Tenancy Tribunal were due to rent arrears. That’s up from 72% of 2,900 applications in the same quarter the previous year - a clear indication that the pressure is mounting on both landlords and tenants.

TL;DR: If you’re a landlord facing rent arrears, act fast. Communicate clearly, document everything, and know your legal options. And if it’s getting too hard to manage, Property Brokers can help - with a proven process, guaranteed rent arrears management, and support from experts who do this every day.

Understand your legal options

In New Zealand, rent is considered in arrears if it is unpaid for five working days. Landlords have the right to:

• Issue a 14-day breach notice if rent is overdue
• Apply to the Tenancy Tribunal after 21 days of arrears (or earlier under Section 55(1)(aa) if the terms of a mediated agreement are broken)

🔗 Tenancy Services: Breach Notices and Ending Tenancies

What to do as soon as a payment is missed

Timely and empathetic communication can prevent things from escalating.

• Check your records: Confirm the rent is overdue and by how much
• Contact the tenant: Be prompt, firm, and fair. Avoid accusatory language
• Document everything: Always follow up in writing with a summary of what was discussed
• Give the tenant an opportunity to explain their situation and offer a plan

Offering repayment plans or mediation

If the tenant is willing and able to pay - just not all at once - a repayment plan may work.

• Discuss what is realistic for them to pay on top of current rent
• Use mediation services offered by Tenancy Services to record and formalise any agreement
• If a mediated agreement is dishonoured, you can request a consequential termination clause

Once sealed by the Tenancy Tribunal, a mediated order becomes enforceable by law.

When and how to apply to the Tenancy Tribunal

Apply early - not doing so can worsen the situation.

• File an application within seven working days of issuing a breach notice
• Provide clear records: rent summaries, communication logs, and the 14-day notice
• Be aware: Tribunal wait times can be up to six weeks, so early action preserves options

Leaving it too late can lead to large unpaid debts and neglected properties.

Be realistic about what tenants can repay

Over-demanding repayments will likely cause the tenant to default again. But being too lenient can delay resolution for months.

• Discuss and agree on an amount the tenant can manage
• Record the plan in writing
• Monitor closely - and act if the tenant falls behind again

Keep your emotions in check. The more professional the interaction, the more likely a fair resolution.

Why a property manager makes this easier

Managing rent arrears is time-consuming, stressful, and legally sensitive. At Property Brokers, we take that stress off your plate.

Here’s how we help:

• Zero-tolerance policy: Every missed payment is actioned within five working days
• Guaranteed service: One of our three service guarantees is focused on rent arrears
• Structured process: Tribunal applications are submitted early, with documentation ready
• Scale and experience: We collect over $150 million in rent annually

With us, there’s no guesswork - just a proven process and better outcomes for landlords.

🔗 Explore our Property Management Services

Frequently asked questions about rent arrears

• How many days overdue is rent considered in arrears? Five working days.

• When can a landlord evict a tenant for missed rent? After 21 days of rent arrears or if the terms of a mediated agreement are breached.

• Can I let a tenant repay overdue rent in instalments? Yes - but always document it and consider using a mediated agreement.

• What is the process for sending a 14-day notice? Use the Tenancy Services template and ensure it clearly outlines the breach and actions required.

• How long does the Tenancy Tribunal process take? It can take up to six weeks for a hearing, so apply early.

• What happens if my tenant keeps falling behind? You may apply for termination under Section 55 or renegotiate if it’s manageable — but early action is best.

• What can a property manager do that I can’t? They act faster, follow a proven process, and remove the emotional toll - protecting your time and your income.