This article was originally posted on March 6, 2021, and updated on November 6, 2026, to include the latest information available.
Deferred payments let residents postpone rent to a later date. They can also apply to other scheduled charges, such as utilities or parking. Most deferments happen in response to financial hardships like job loss, unexpected costs or illness. There are three ways to structure one: a deferred payment schedule, an ad hoc credit paired with future charges or scheduled charges that spread relief and recovery over set periods.
The good news is that a resident who hits a rough month isn’t automatically a lost cause. A structured deferment can keep them housed and get you paid.
Yardi Breeze Premier has an intuitive interface that makes rent deferment simple. Let’s take a look at each option, plus how to document them properly.
Key takeaways
- A deferred payment postpones rent or other scheduled charges, usually after a short-term hardship
- Deferred payment schedules are the most reliable of the three methods because they track repayment on their own
- Put every deferment in writing and apply the same criteria to every resident
1. Deferred payment schedules
A deferred payment schedule is a formal repayment plan. The resident’s charges are postponed, then recovered on a timeline you both agree to. It’s the approach we recommend for most rent deferral scenarios.
In Yardi Breeze Premier, you can set up deferred payment and recovery plans with a single, easy-to-use function. The schedule tracks all activity related to the deferment and adds reporting built specifically for it, so you always know who owes what and when it’s due.
2. Ad-hoc credits/charges
Deferred payment schedules are often the best way to defer payments, but they’re not the only way. You may offer a one-time credit to a tenant for some or all of the payments due for a given month. This is called rent reduction.
The property manager may also set up one or more charges with a future due date for the amount that was credited, known as rent deferral.
This strategy can be repeated as needed but requires manual data entry and ongoing oversight. It also increases the risk of human error. Try to limit how many ad hoc credits you provide, or better yet, use deferred payment schedules to save time and ensure timely repayments.
3. Scheduled charges
Breeze Premier can be used to schedule negative charges (credits) over a period of time. This will temporarily reduce rent during that time. The same function can be used to schedule the recovery payments over a different period.
Charge schedules make it easy to spread the deferred payments over multiple months. This strategy involves less data entry than ad-hoc charges but still requires more hands-on oversight than the deferred payment schedule.
Put every deferment in writing
A verbal deferment is a dispute waiting to happen. Before you adjust any charges, get the agreement in writing. A signed repayment agreement or lease addendum should state how much is deferred, when it will be repaid and what happens if a payment is missed.
Two more safeguards worth building in:
- Apply the same rules to everyone. Decide in advance who qualifies for a deferment and on what terms. Write those rules down and follow them for every resident. Making one-off calls with no written standard can expose you to fair housing complaints.
- Check your local rules. Some states and cities have laws about repayment plans. These cover late fees during a deferment and the notice you must give before taking further action. When state and local rules differ, the stricter one generally applies, so confirm what’s required before you finalize terms.
Store the signed agreement and payment history in the resident’s record in your property management software, so they’re easy to find if questions come up later.
When rent deferment makes sense
Deferments temporarily hurt your bottom line, and they’re rarely the ideal solution to a payment problem. But if you can weather a short-term loss of income, a repayment plan beats no income at all.
If a resident’s income hasn’t stabilized or the balance keeps growing, a deferment just delays a harder decision. Build repayment ability into your written criteria and involve your owners in setting that standard.
Deferred payments for commercial tenants
Commercial tenants facing revenue loss often ask to renegotiate their lease before they miss a payment. When that conversation starts, a deferred payment plan is frequently the middle ground: the tenant gets short-term relief on their monthly rent obligation, and you preserve occupancy and long-term cash flow.
A tenant’s business failing outright usually costs the landlord more than a temporary deferral does. That math is worth remembering when a reliable tenant hits a rough quarter. The same documentation rules apply here: get the modified terms in writing and confirm they align with the lease.
Get creative
Deferments can also convert prospects into residents. Say a prospect has a steady income but little upfront cash. With your owners’ approval, you could offer “no rent due the first month.” This would essentially be a deferred payment plan where that month’s rent is evenly distributed across the following six to 12 months as additional charges. It’s one way to keep occupancy up without discounting rent outright.
Keep in mind that you need to make clear that the money from that first month is still due. You’re going to lose a lot of trust if residents think this is a “no rent charged for one month” promotion.
Beyond deferment: Payment flexibility residents value
Deferment is more of an emergency tool than a go-to solution. You might want to consider other flexible payment ideas instead. Nearly half of renters (46%) rate on-time rental payment credit reporting as very important or essential to their financial health, and 35% say the same about security deposit alternatives.
When to use deferred payments
- Any multi-month repayment plan
- An ad hoc credit with a future charge for a one-off
- Scheduled charges to spread relief and recovery over set periods.
Whichever method you choose, be sure to get consent in writing and apply the same standards to everyone.
Yardi Breeze Premier handles all three deferment types and keeps the documentation with the resident’s account.
Disclaimer
This article is for informational purposes only and does not constitute legal advice. Laws governing rent repayment plans, late fees and related notices vary by state and locality. Consult your attorney before offering or modifying a deferred payment arrangement.
