Tenant Owes Rent: Letter of Demand or Straight to Tribunal?

The rent has been late for weeks, then missed entirely. The tenant has stopped responding to messages. As a landlord — or a property manager acting for one — you face a choice: send a formal letter of demand and give the tenant a final opportunity to pay, or move straight to the statutory breach notice and tribunal track. The right answer depends on how far behind the tenant is and what outcome you want.

The legal framework in your state

Each state has a residential tenancies regime with a defined sequence: New South Wales Residential Tenancies Act 2010 (14-day termination notice for unpaid rent under section 88, then NCAT). Victoria Residential Tenancies Act 1997 (notice to vacate for non-payment of rent, then VCAT). Queensland Residential Tenancies and Rooming Accommodation Act 2008 (Form 11 notice to remedy breach for unpaid rent — 7 days — then Form 12 notice to leave, then QCAT). Western Australia Residential Tenancies Act 1987 (Form 1A breach notice, Magistrates Court). South Australia Residential Tenancies Act 1995 (Form 2 notice, SACAT). Australian Capital Territory Residential Tenancies Act 1997 (notice to remedy, ACAT). Tasmania Residential Tenancy Act 1997 (notice to vacate, the Residential Tenancy Commissioner or the Magistrates Court). Northern Territory Residential Tenancies Act 1999 (notice to remedy, NTCAT).

When a Letter of Demand is the right first step

A Letter of Demand is the right tool when the tenancy is ongoing, the relationship is not yet broken, and you want to recover the arrears without losing the tenant. It is also useful when the tenant has already vacated owing rent — because the formal demand is the documented predecessor to the bond claim and any tribunal recovery application. A Letter of Demand creates a clear paper trail, sets a defined payment deadline, and signals professional intent to escalate.

Common landlord pitfalls

• Calling and texting only. Phone calls leave no record and are easily disputed in tribunal.
• Issuing the statutory notice with errors. Tribunals strike out termination notices for technical defects (wrong form, wrong period, wrong service) — a costly delay.
• Locking the tenant out or removing belongings. Both are unlawful in every state — exposes the landlord to compensation orders.
• Failing to mitigate. Delay in re-letting after termination reduces your recovery for lost rent.
• Not pursuing the bond promptly. Each state has tight timeframes for bond claims.

What the document does

A Letter of Demand sets out the tenancy, the arrears (with a clear ledger), the payment deadline (typically 7–14 days), and warns of the next steps — statutory breach/termination notice and tribunal application for possession and arrears. It cites the relevant state Act so the tenant understands the framework. It is often the cheapest, fastest way to bring a stalled tenant back to the table.

What Claim Done delivers

For a flat fee, Claim Done drafts a Letter of Demand for unpaid rent with the correct state Act citation, properly itemised arrears, and a defined payment deadline. About ten minutes.

What happens after

Many tenants pay (or enter a payment plan) within the demand period because the alternative — a termination notice and tribunal proceedings — risks their rental history. If the tenant ignores the demand, the next step is the statutory breach/termination notice in your state’s prescribed form, then a tribunal application for possession and a money order for the arrears.