Stay and Pay Agreement

Stay and Pay Agreement: Everything You Need to Know

If you`re a landlord or tenant, you might have heard of the term “stay and pay agreement.” It`s a relatively new concept, and not everyone is aware of what it entails. In this article, we`ll explain what a stay and pay agreement is, its benefits and drawbacks, and when it`s appropriate to use one.

What is a Stay and Pay Agreement?

A stay and pay agreement, or “SAPA,” is a contractual agreement between a landlord and a tenant that allows the tenant to remain in the property without paying rent for a specified period. This can happen if the tenant falls behind on payments due to personal or financial reasons.

The agreement states that the tenant will stay in the property and make future payments to the landlord to cover the missed rent. Generally, the tenant agrees to pay higher rent to cover the missed payments over time. This agreement can provide a way for tenants to stay in their homes and avoid eviction while giving landlords a way to recoup missed rent payments.

Benefits of Stay and Pay Agreements

One of the most significant benefits of stay and pay agreements is that they can help tenants avoid eviction, which can be financially and emotionally devastating. Tenants can stay in their homes and avoid the expense of moving, finding a new place to live, and paying deposits and rent upfront. Additionally, landlords can avoid the costs associated with eviction, such as legal fees and lost rent due to vacancy.

Stay and pay agreements can also help tenants improve their credit score by avoiding an eviction proceeding, which can significantly impact their credit. Tenants can use this time to get back on their feet financially, find a job, and get caught up on their rent payments.

Drawbacks of Stay and Pay Agreements

While stay and pay agreements can offer advantages to both tenants and landlords, there are certain drawbacks to consider. For example, if tenants fail to pay the increased rent required by the agreement, they risk eviction. Additionally, tenants may have difficulty finding alternative housing if they`re unable to pay the increased rent.

Landlords might also face a financial loss if they`re unable to collect the missed rent over time. If the tenant ends up defaulting on their payments, the landlord may be left without any compensation.

When to Use a Stay and Pay Agreement

Stay and pay agreements are suitable for both tenants and landlords facing financial hardships. For tenants, it may be a way to avoid eviction and remain in their homes, while for landlords, it may be a way to recover missed rent payments without having to go through the eviction process.

It`s important to use stay and pay agreements only when tenants have a reasonable chance of catching up on their rent payments. Additionally, landlords should ensure that the tenant`s increased rent payments are sufficient to cover the missed rent and provide additional compensation.


Stay and pay agreements offer a way for tenants facing financial difficulties to avoid eviction while providing landlords with a way to recover missed rent payments. While there are risks and drawbacks to consider, using this agreement can provide a win-win situation for both tenants and landlords. If you`re considering using a stay and pay agreement, be sure to consult with an attorney to ensure that you`re following all legal requirements and protecting your interests.

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