The landlord wants the rent arrears paid by tomorrow

Rent arrears creep up quietly. A slow month, a big repair, a customer who paid late, and suddenly the gap is two or three months. Then the letter arrives with a date on it, and that date is tomorrow.

For a business that depends on its location — a shop, a café, a clinic, a workshop — losing the premises can cost far more than the arrears ever will: fit-out, customers, stock, reputation. This page explains how to use tonight to protect the lease.

What does the notice actually say?

Before you do anything else, read the landlord’s notice slowly. Commercial and retail leases, and the rules around them, vary by state and by the lease itself, so the notice is your guide to what’s being asked.

Look for:

• The exact amount claimed, and what it covers (rent, outgoings, interest, costs).
• The deadline, including the time if one is stated.
• What the landlord says will happen if the amount isn’t paid.
• Who to contact: the landlord directly, a managing agent or a lawyer.

If the notice is unclear, or you’re worried about your rights, speak to a lawyer or your state’s small business commissioner (or equivalent). The Australian Small Business and Family Enterprise Ombudsman’s dispute support tool covers retail lease disputes and points you to the most appropriate service, which may be state-based.

What should I say to the landlord tonight?

Landlords generally want two things: to be paid, and to keep a reliable tenant. A specific plan speaks to both.

A useful message covers:

1. Acknowledgement of the arrears and the amount.
2. What you can pay now from existing funds.
3. When the balance will be paid, with a specific date.
4. That funding is being arranged, so the date is credible.
5. How you’ll keep rent current from here.

Keep it short and factual. If the landlord agrees to a plan, get it confirmed in writing, even by email.

Then make sure the plan holds. Enquire tonight so a specialist can call you first thing and the balance lands when you said it would.

How can funding help with rent arrears?

Keeping business premises is a clear business purpose, and lenders understand it. The questions they’ll ask are mainly about the future:

The lender asks	A strong answer
Why did the arrears build up?	A specific cause: a slow season, a late customer, a one-off repair
Has that cause passed?	Yes — trading has recovered, or the customer has paid
Can the business keep rent current?	Recent statements show enough to meet rent going forward
How will the funding be repaid?	From trading, a known receivable or a seasonal lift

For trading businesses without property, unsecured funding sized on bank statements can be possible quickly for smaller amounts. For larger arrears, property-secured funding of $20k to $250k can be possible same day.

If the arrears reflect a business that’s losing money every month, it’s worth pausing to think. Borrowing to catch up only helps if the business can stay current afterwards. A good specialist will tell you honestly if the numbers don’t add up.

What should I gather tonight?

• The landlord’s notice and your lease (or at least the rent and outgoings pages).
• Business bank statements for every account, as PDFs.
• Your ABN, and company or trust details.
• ID for each director.
• A short funding note: the arrears, the cause, and the plan.

An illustrative example

Illustrative: A gift shop in a regional Victorian town fell three months behind on rent after a road upgrade cut foot traffic over winter. With the works finished and trade back to normal, the owner receives a notice requiring $19,500 in arrears within a set period, ending tomorrow. She emails the managing agent at 8pm offering $5,000 now and the balance by the end of the next business day, then enquires for $14,500. Her statements show the winter dip and the recovery clearly. Funds are possible the next day, and the arrears are cleared on the date she promised.

How do I keep rent from falling behind again?

Treat rent like payroll: a fixed, non-negotiable outflow with its own reserve. Some businesses move a weekly slice of rent into a separate account so the monthly payment is always covered. Our ten-day cash calendar helps you see rent, payroll and tax dates side by side, well before they arrive.

If a late customer is the reason you fell behind, our page on a customer who paid late may help too.

What else is due alongside the rent?

Rent arrears rarely arrive alone. If the landlord’s deadline lands in the same week as payroll or a BAS payment, add them up before deciding how much to request, so one fix doesn’t create the next problem. See payroll due tomorrow and BAS due tomorrow for the other two most common deadlines.

If you’re negotiating with an agent rather than the landlord directly, ask them to confirm the landlord’s agreement in writing. Agents can usually respond quickly, but a verbal “should be fine” is not the same as an agreed plan.

Protect your premises

Your location is part of your business. If the landlord’s deadline is tomorrow, start tonight. It takes about 60 seconds to enquire, and there’s no credit check when you do. We won’t circulate your details to multiple lenders — one specialist works on your file and calls you directly. Please be accurate about the amount owing, the deadline and how the arrears arose, so we can match the right option straight away.

Protect my premises tomorrow →