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Payment Plan Cure Rate Calculator

Payment plans let tenants cure arrears. This calculator tracks cure rate and sizes expected recovery.

$

Cure rate

58.0%

Expected recovery

$112,500

Re-default rate

30.0%

How the math works

Cure rate = completed ÷ started. Expected recovery weights defaulters at 10-15% recoverable.

Track cure rates by cohort. Plans offered in Q1 may cure differently than Q3. Optimize for structure (length, auto-debit, documentation) over leniency. Strict plans cure better than loose ones.

How to Use

  1. Enter plans active.
  2. Enter plans completed.
  3. Enter plans defaulted.
  4. Enter average plan balance.
  5. Read cure rate.

Frequently Asked Questions

Cure rate?

50-70% for well-structured plans with tenant committed. 20-40% for eviction-deferral plans. Rigorous documentation and LL oversight makes huge difference.

Plan design?

Short (3-6 payments max). Auto-debit preferred. Clear default consequences. Tie to rental concessions (no late fees if plan current). Simpler plans close better.

When to reject?

3+ prior defaults. Current income insufficient for plan + rent. Refusal of auto-debit. These flag high re-default risk.

What documentation matters here?

Written leases, move-in/move-out inspections with photographs, ledger entries showing every payment and charge, served notices with proof of service, and contemporaneous emails or texts. Courts weigh written evidence heavily; informal understandings rarely stand. Institutional operators run a monthly file audit to catch gaps before they matter. Good paper trails recover most of what's owed.

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