What is a Partial Payment Notice?
A partial payment of rent notice is used when the tenant pays a part but not all of the rent and/or additional rent (e.g. utilities) that are due and owing. The notice acknowledges the partial payment and demands that the remaining amount be paid on or before a certain date.
Why should landlords use one?
Issuing a partial payment notice is important because not doing so can leave the door open for the tenant to claim that they interpreted it as the landlord agreeing to a settlement for the lesser amount. This notice makes it clear that the remaining amounts are fully expected and must be paid by a certain date to avoid further action.
When is a Partial Payment Notice used?
A partial payment should not be issued until the outstanding amount is officially in default. For example, if rent should be paid on the 1st of the month and a partial payment is received at 12 noon on that date, the notice should not be issued until the next day once it is actually overdue.
How should a Partial Payment Notice be issued?
As with all tenancy correspondence, the notice should be issued in per the regulations of your province’s Residential Tenancy Act. While some provinces may allow service/delivery by other methods, the safest and most secure options are prepaid registered mail and hand delivery. Correspondence by email or text message will most likely not be taken seriously by a judge or tenant board if further action is needed.
Where should a Partial Payment Notice be issued?
When delivering formal correspondence related to tenancy issues one should always be sure to include all addresses and recipients that may be required. This includes not only the address of the rental unit but also any alternative delivery addresses included in the tenancy agreement and/or addresses for any listed indemnifiers or guarantors. You can check the “delivery” or “notice” sections of your tenancy agreement for further details on where and how notice should be given.
Failing to comply with notice requirements can cause delays or other issues if and when further action against the tenant is required.
Where can you find out more?
Further details on residential tenancies can be found by clicking your province below:
