Renters are furious at an old policy document a real estate agency previously sent to tenants suggesting they get credit cards or take out loans to pay rent on time. 

Ray White Bankstown, in Sydney, sent out its ‘zero tolerance policy’ for rental payments to tenants which was shared on Facebook this week. 

The document, which has since been updated, was originally sent to tenants alongside their initial tenancy agreement documents.

The astonishing letter to renters warned that the follow-up for late payments would involved phone calls and ‘personal visits’.

‘This has caused some tenants to be upset, embarrassed and even resentful. However we do not apologise for such action because you agreed when signing the tenancy agreement to pay rent on time … all the time without exception,’ it said.

‘We make it clear that our clients who own (the) rental property have taken out a mortgage. This person has approved your application ONLY on the grounds your rent will be paid on time … every time!’

Along with warning what would happen if a payment was missed the document also suggested renters ‘do all that you can to borrow money from other sources’.

The methods recommended by the agency included borrowing money from family, friends or employers, reaching out to a bank to borrow funds, using credit cards or visiting a pawnbroker.

Ray White Bankstown, in Sydney, is facing backlash from renters over its old ‘zero tolerance policy for late rent payments’ which recommended tenants take out loans to pay rent 

Ray White Bankstown has since updated the eyebrow raising document but in its original iteration renters were warned that if they did miss a payment on time it would result in them receiving a ‘poor performance reference’.

These reviews would ‘affect further tenancy arrangements with other real estate agents (not) only in your local area, but Australia and New Zealand wide’.

A Ray White Bankstown spokesperson said the old document was a mistake and that the business was sympathetic to the plights of its clients amidst the rental crisis.    

‘We are sorry for any distress the letter has caused,’ the spokesperson told news.com.au.

‘The business is sympathetic to the challenges of all its tenants, especially with today’s cost of living pressures.’

The business said its commitment to support landlords and tenants ‘with understanding and care has never changed’.

Amongst the hundreds of renters who slammed the document was another real estate agent, Amir Jahan from A-Class Estate Agents, who called it ‘disgusting’.

‘It is disrespectful. As the agent, yes, you have the authority to manage the property… [but] you’re here as a problem solver, not to be the one causing the problem,’ he told the publication. 

Renters agreed with Mr Jahan’s sentiment, agreeing Ray White’s old recommendations were ‘just cruel’.

Ray White Bankstown (pictured) has recently updated its late rent policy document to remove any recommendation that renters borrow money to make rental payments 

One commenter said the policy was ‘gross’ while another said it was nothing more than a ‘power trip’ for the agency.

Others however defended the plight of landlords.

‘In fairness though why should my financial hardship impact someone other than myself,’ one renter wrote. 

‘If I sign a contract to pay rent on time than I will do everything in my power to do that,’ another said.

‘I’d read this, roll my eyes then sign it. Having said that I’d hate to be with a real estate that started the relationship on this footing,’ a third added. 

Australia is currently facing a rental crisis. The median price of rent per week in capital cities is an eye-watering $650 while in regional towns it is not far behind at $550.

Average rents rose nationally by 4.8 per cent in 2024 which was less than the 8.1 per cent increase in 2023. 

The Tenants’ Union of NSW advises renters struggling to pay the rent to keep in contact with their real estate agent to try and work out a ‘realistic’ payment plan going forward.

The National Debt Helpline can also be a lifeline for tenants who have found themselves to be facing financial distress which could affect their living conditions.

Daily Mail Australia has contacted Ray White Bankstown for comment.