Direct Debit and BPay rent payments
If the rent does not get paid on time you need to
follow up your tenant’s straight away. This means monitoring your bank account
on the day it’s due which is tedious and a very inefficient way to spend your
The other problem having your tenant schedule their
own rent transfer is you have no control if the rent is paid or not. You just
hope that they pay it.
What you need to do is set up your tenants on
direct debit rent payments. This is where the tenant agrees for you to take the
rent out of their bank account on the day it’s due.
This is well known in the industry as the best way
to ensure the rent is always paid on time.
In my experience having rent paid by direct debit
reduces late payments by 50% compared to normal bank transfers. This is because
you are in control of taking the money out and not relying on the tenant to
transfer the money.
The extra hidden benefit is late payment fees. By
law in Australia you can’t charge tenants for paying their rent late however on
Direct Debit tenants can be charged a fee for not having enough money in the
bank when the rent is due. Although you don’t get this fee it is an added
reason for the tenant to ensure enough money is there the day rent is due.
Tenants can set up a Direct Debit in
RealRenta. By law, you must provide your tenant one freeway to pay rent and
this is free for your tenant. No complaints.
As another option, if your tenant receives
Centrelink payments – Centrelink offers a free direct bill-paying service
(called Centrepay) where the rent is paid straight to you from their Centrelink
payment without them ever receiving the money.
With RealRenta Tenants can pay their rent
via BPAY or Direct Debit (one-off or automated payments).
will automatically notify your tenants and the owner by email and text message
if the rent payment is late and will even send out a breach notice when
will track the rent, raise invoices and receipts which is a legal requirement.
And much more
out more tips on how to prevent your tenant from falling behind in rent, in the
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Friday, 21 August 2020