What is a rent arrears repayment agreement?
When a tenant falls behind with rent, a written repayment plan is often better for both sides than going straight to eviction: the landlord recovers the money, the tenant keeps their home, and everyone knows exactly what has been agreed. A rent arrears repayment agreement (or rent payment plan) records the amount owed and a schedule for paying it off alongside the ongoing rent.
This template records the arrears and what they are for, and whether late fees are included or waived while the plan is kept. The tenant keeps paying the current rent in full, with instalments towards the arrears on top — either equal instalments on a set frequency or a custom schedule — and an optional lump sum on signing. It says how payments are applied, allows early repayment, and can record rental assistance the tenant has applied for. While the plan is kept, the landlord agrees not to start or continue legal action over these arrears. If a payment is missed, there's a grace period, a written reminder and a set time to catch up before the full balance becomes due. It invites the tenant to raise hardship early and leaves the lease otherwise unchanged.
- Best for
- Residential tenants who are behind with rent and can catch up over time
- Signed by
- Landlord (or agent) and tenant, initialled on every page
- Plan
- Equal instalments or a custom schedule, paid on top of current rent
- Length
- 2 pages
When to Use a rent arrears repayment agreement
- A tenant missed a few months' rent after losing a job or a drop in hours
- Arrears built up during illness, a family emergency or a benefits delay
- A tenant waiting on emergency rental assistance who can pay part now
- A landlord who would rather agree a plan than start possession proceedings
- Putting an informal "pay me back when you can" arrangement in writing
What You Fill In
24 blanks, then the name and email of each person who signs: landlord, tenant.
1 The tenancy
- Date of this agreement*
- Landlord or managing agent*
- Landlord's address
- Tenant name(s)*
- Address of the rented property*
- Date of the lease
2 The arrears
- Currency*
- Total arrears owed today*
- What the arrears are for*
- Late fees and interest* No late fees or interest have been included in the Arrears, and none will be added while the Tenant keeps to this plan. · Late fees already charged under the Lease are included in the Arrears. No further late fees or interest will be added to the Arrears while the Tenant keeps to this plan.
3 Current rent
- Current rent*
- Rent is paid* per month · every four weeks · every two weeks · per week
- Rent is due on*
4 Repayment plan
- Lump sum paid on signing
- Each arrears instalment*
- Instalments are paid* with each rent payment · every week · every two weeks · every month
- Number of instalments*
- First instalment due*
- Custom schedule (optional)
- How payments are made
5 Support
- Rental assistance or benefits (optional)
6 If a payment is missed
- Grace period for a late instalment (days)*
- Days to catch up after a written reminder*
- Governing law*
7 Who signs
- Landlord signature and date, job title, initials on every page · The landlord, or the agent or property manager authorised to agree payment plans.
- Tenant signature and date, initials on every page · The tenant who owes the arrears. If several tenants are responsible, name them all above and send a copy to each one to sign.
What the rent arrears repayment agreement Covers
- The arrears
- Current rent continues
- Repayment plan
- While the plan is kept
- If a payment is missed
- Nothing else changes
- General
Using the rent arrears repayment agreement, step by step
1 Agree the exact arrears
Check the figure against your rent ledger and give the tenant a statement. Enter the total and what it's for, such as "unpaid rent due on 1 July, 1 August and 1 September". Choose whether late fees are included or waived.
2 Record the current rent
Enter the rent, how often it's paid and the due date. The agreement makes clear that instalments are paid on top of the rent, and payments go to current rent first.
3 Build an affordable plan
Add any lump sum paid on signing, then either equal instalments (amount, frequency, number and first due date) or a custom schedule. Set a plan the tenant can realistically keep — a failed plan helps no one. Record any rental assistance applied for.
4 Set the missed-payment process and sign
Choose the grace period and the days to catch up after a written reminder, and the governing law. Send it to the tenant; both of you sign and initial every page.
Tips Before You Send It
- Talk to the tenant before you draft the plan — ask what they can afford each week or month after rent and essential bills.
- Only include fees the lease and the law allow; many places limit late fees on rent.
- Eviction and possession processes are set by local law. The agreement doesn't change them, and the landlord must still follow them if the plan fails.
- Point the tenant to local rental assistance or advice services if they're struggling — assistance payments can be applied straight to the arrears.
Sign It Online In Minutes
- Fill in the blanks. Names, dates and amounts go straight into the agreement — the preview shows exactly where.
- Name who signs. Tick “This is me” for your own part. VergeHR builds the PDF with every signature, date and initials box on the right line, and you can check or move anything before sending.
- Send it. Each signer gets a secure link and signs from any device — no account needed. The signed PDF, with an audit trail and a Certificate of Completion, is filed in Files and emailed to everyone.
Rent arrears repayment agreement: frequently asked questions
Can the landlord evict while the tenant keeps to the plan?
Under this agreement, while the tenant makes every payment on time (allowing for the grace period), the landlord won't start or continue legal action to end the tenancy because of these arrears. It doesn't stop the landlord acting on other serious breaches of the lease, as the law allows.
What happens if a payment is missed?
After the grace period, the landlord sends a written reminder. If the tenant doesn't catch up within the number of days you set, the plan ends and the remaining arrears become due, and the landlord may take the steps the lease and the law allow.
Can the plan be changed later?
Yes, if both agree in writing. The agreement asks the tenant to raise problems before missing a payment, and the landlord to consider reasonable requests in good faith.
Is an e-signed repayment agreement binding?
Electronic signatures are generally valid for ordinary contracts in the US (ESIGN Act and UETA), the UK, the EU (eIDAS) and Canada. The signed PDF with its audit trail is filed in Files.