From 1 July 2009 Tenants Can Choose A Rent Payment System
In more recent years many real estate agents and landlords have been requesting automatic transfers for rental payments. From a real estate agents point of view this meant that there was very little cash in the office and also it required less staff time involved in taking and processing rental payments.
But from 1 July 2009 lessors and agents are required to give tenants a choice of approved ways to pay rent and must advise tenants in writing about the costs of using some payment methods.
Approved methods at the moment are:
a) Cash
b) Cheque
c) Deposit to a financial institution account nominated by the lessor
d) Credit card
e) An EFTPOS system
f) Deduction from pay, pension or other payable benefit to the tenant
g) A ‘rent pay card’ system, direct debit or money order, as agreed to by the tenant and lessor
If system (g) is offered there must be at least 2 other options offered as well, and any costs associated with any of the options must be pointed out to the tenant.
Although the options need to be handed over in writing to the tenant there does not need to be any signatures collected. It is suggested that a rental application form be modified to include the options being offered and when the application form is signed the option choice will be elected at that time.
If you are doing your own property management check out the details in your state to ensure that you are acting correctly under any changes to the law.
Filed Under: Property Investment • Property News
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