Most owners worry when rent doesn’t arrive, but late rent doesn’t always mean lost rent. In Victoria, there’s a clear process for how arrears should be handled, legally, respectfully, and systematically. Here’s what happens if a tenant doesn’t pay rent in Victoria, and how data, law, and insurance all come together to protect you (and your rental return).

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The short answer – when rent isn’t paid in Victoria

1. Most renters catch up within the first two weeks.
2. After 14 days, the formal eviction process starts.
3. If arrears continue, tribunal will order possession.
4. If the renter does not move out, police have the power to evict the renter.

With Cubbi Full Management, every step is handled for you. Your rent keeps coming in, your insurance is managed automatically, and you’re never out of pocket, not even a cent. Join the waitlist →

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The three pillars that shape what happens

1. Data – what actually happens in the real world

Across Australia, most tenants who fall behind will catch up within the first two weeks. After that, the chances of full recovery drop quickly.

Here’s what the data generally shows:

Note: This data is based on thousands of tenancies in Australia from Cubbi’s Assisted Management platform and has been adjusted slightly to reflect the broader market. Thats because, in some cases, rent is paid directly to owners outside the platform when tenants are late, which can make Cubbi’s raw data appear slightly higher than the market average.

Within the first two weeks, most renters will catch up on their payments, but after that point, the odds drop fast.

Now that we know the likelihood of rent being paid back up to date, let’s look at what the law and insurance policies say.

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2. Law – what the Victorian rules say

The eviction process in Victoria follows the Residential Tenancies Act 1997. Here’s how it actually plays out in order.

• A tenant is considered in arrears after one day late.
• A Notice to Vacate can be issued if the renter owes at least 14 days rent
• The owner or agent can apply for a possession order after the notice is served.
• If the renter pays all arrears before the hearing, VCAT (tribunal) must dismiss the eviction.
• If the renter does not move out, police have the power to evict the renter.

Even though the law in Victoria allows an owner or agent to send a termination notice if the rent is over 14 days late, in some cases, based on the real world probably of renters catching up, if they have not had late payment issues before it’s sometimes common sense to give renters a final 2 days grace before serving the offical Notice to Vacate. This can be a relationship saver if they have been good in the past.

Next up, how do landlord insurance policies affect the right action to take?

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3. Landlord Insurance – how protection really works

Most landlord insurance policies (like EBM RentCover or Terri Scheer) will cover you if your renter has been evicted for not paying rent. Cover may include:

• Rent owing by the tenant up to vacate date
• Rent until new renters move in
• Renter Damage (EBM’s has broader coverage)

In practice you normally cannot make a claim until after the tenant has moved out, mostly due to the documents that the insurer will most likely need. For example:

• Proof that notices were issued promptly based on legislation.
• Proof the legal eviction process was followed exactly.
• Rental ledgers and communication records.
• Ingoing and Final inspection reports clearly showing the damage was caused by the renters.

The actual documents required will depend on the situation, your policy and the exact claim.

All in all, your landlord insurance will require the eviction is handled by the book, need proof of the claim and see that the risk has been minimised. Cubbi handles this all for you.

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Timeline when rent is not paid in Victoria

Typical scenario

Property: Mornington house • Rent: $700 per week • Bond: $3,041.67 • Fixed-term lease

The renter stops paying rent and only leaves after a VCAT possession order. When they move out, the home needs a deep clean and rubbish removal, plus minor repairs to a door and a few walls.

Even when you do everything right — keep the property well maintained and choose carefully screened renters, there’s always a small chance you’ll face this situation. It’s the most common type of claim in Australia. In fact, loss of rent accounts for around two-thirds of all landlord insurance claims made through EBM RentCover.

How to read this timeline

• Loss / Cost: Payable items only — things like unpaid rent, vacancy, letting fees, or any related charges.
• Advance Rent balance: The running total Cubbi has advanced to keep your cash flow steady (up to $10,000).
• Owner Receives: The actual money received by the owner each week.

This 16-week timeline shows exactly how the late rent process unfolds, step by step and how Cubbi keeps your cash flow steady the whole time.

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With Cubbi, you stay paid — always‍

With Cubbi Full Management, CubbiCover guarantees and EBM Landlord Insurance working together, your cash flow continues exactly as if the tenant never missed a payment.

You don’t have to lift a finger. You’re not out of pocket not even a cent, not even during vacancy.

Everything — rent, bond, insurance, and claims — flows through one system that keeps your income steady and your stress at zero.

We do this because we back the renters we place and the system we’ve built. When management is done properly, issues like this almost never happen — so rare that we’re willing to put ourselves on the hook for it. That’s the difference between Cubbi and a standard agent: we don’t just manage properties, we stand behind the outcome.

Here’s a breakdown showing the difference between Cubbi and a standard property manager.

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What it really costs — and what’s covered

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Total outcome

Even through a full eviction and re-let, Cubbi keeps your income steady.

Rent keeps landing each week, the system handles the claim, the excess and letting fee are covered, and you never pay a cent, not even during vacancy.

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Important notes

This comparison is based on the example above where:

• The property is managed by Cubbi.
• The renter was a Cubbi Certified Renter (recommended and placed by Cubbi).
• The owner has EBM RentCover Landlord Insurance through Cubbi.

Landlord insurance policies differ between providers. For example, Terri Scheer often treats rent arrears and damage as multiple claims (multiple excesses), and many insurers provide narrower damage cover than EBM. These differences are exactly why Cubbi partners with EBM — for broader protection, single-claim handling, and smoother integration with the Cubbi system.

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Next Step

With Cubbi, you never have to worry if your renter falls behind. CubbiCover bridges the gap between EBM RentCover insurance, the real-world cash flow issues, and the typical $2,000 out-of-pocket costs most owners face with a standard property manager.

Your income continues, your insurance is handled automatically, and your property stays protected — from eviction, to recovery, to new tenant move-in.

Join the waitlist →

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References

• Landlord Insurance: EBM RentCover
• Landlord Insurance: Terri Scheer
• Consumer Affairs Victoria - Late or unpaid rent (rent arrears)

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Frequently Asked Questions

What happens if a tenant doesn’t pay rent in Victoria?

If a tenant falls behind, Cubbi’s system immediately activates a structured arrears workflow. Rent reminders go out, follow-up messages escalate automatically, and after 14 days late a legal Notice to Vacate can be issued. If the tenant still doesn’t pay, Cubbi lodges a VCAT application for possession while your cash flow continues through Advance Rent.

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How long before a landlord can evict a tenant for not paying rent in Victoria?

Under the Residential Tenancies Act 1997 (Victoria), a Notice to Vacate can be served once the rent is more than 14 days late.

Keep in mind, rent accrues daily, so any part payments affect the total days late. The notice must also give the renter at least 14 full days’ notice, not counting the day it’s served or the termination date. This is one of the most common mistakes owners and agents make when issuing a termination notice.

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Does landlord insurance cover unpaid rent in Victoria?

Yes, most landlord insurance policies, such as EBM RentCover, include cover for unpaid rent.

However, the amount covered depends on whether a possession order is granted. For example, EBM RentCover can pay up to 52 weeks of lost rent when a possession order is obtained through VCAT, but only up to 6 weeks if the renter leaves after receiving a Notice to Vacate.

This means if the renter moves out voluntarily after receiving the notice to vacate, loss of rent can only be claimed for up to 6 weeks (including the vacancy). Many policies also require a possession order before paying, so it’s crucial to know what your policy actually covers, and to act quickly if rent falls behind.

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Who pays the rent while waiting for insurance to pay?

With a standard property manager, no one. You’ll usually be without rental income for around 10 to 15 weeks until the insurance claim is finalised and paid out.

If your property is managed by Cubbi, you don’t have to wait. You can access an Advance Rent payment at the click of a button covering late rent or vacancy periods instantly. No loan, no application, no interest, no stress. Up to $10,000 per property. This gets paid back to Cubbi automatically when the insurance claim comes in.

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What costs am I still responsible for if my tenant is evicted?

With a standard property manager, you’ll usually be responsible for several costs:

• Tribunal application ($74) and attendance fees (about $500 per attendance)
• Insurance excess — typically around $400 when claiming for damage in addition to loss of rent
• Agent claim handling fee (around $250)
• Re-letting costs — usually two weeks’ rent

With CubbiCover, all of these costs the excess, claim handling, and letting fee are fully covered with any certified renter. That means you’re never out of pocket, even if the matter goes all the way through tribunal and re-letting.

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