Join Australia's most dynamic and respected property investment community

Accepting rent payments directly

Discussion in 'Accounting & Tax' started by JohnPropChat, 18th Sep, 2015.

  1. JohnPropChat

    JohnPropChat Well-Known Member

    Joined:
    10th Sep, 2015
    Posts:
    567
    Location:
    Perth
    What is the best way to accept rent payments directly (no agent) from the tenant? Interested in something like direct-debit rather than the tenant manually initiating payment every fortnight.
     
  2. No Probs

    No Probs Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    117
    Location:
    Perth
    I would get the tenant to set up a regular payment on Internet banking.
     
  3. legallyblonde

    legallyblonde Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    685
    Location:
    TAS
    Direct debit is the easiest!
     
  4. JohnPropChat

    JohnPropChat Well-Known Member

    Joined:
    10th Sep, 2015
    Posts:
    567
    Location:
    Perth
    I didn't realize individuals (not businesses) can do that?
     
  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,140
    Location:
    Canberra and Sydney
    My wife self manages a couple of IPs - the tenants just set up a direct debit. The funds hit out account each fortnight - easy peasy.

    Cheers

    Jamie
     
    JohnPropChat likes this.
  6. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,569
    Location:
    Adelaide, SA
    They can't, it has to be initiated from tenants end.
     
    JohnPropChat likes this.
  7. legallyblonde

    legallyblonde Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    685
    Location:
    TAS
    Sorry.. To clarify the tenants set up the direct debit as a regular transaction.
     
    JohnPropChat likes this.
  8. JohnPropChat

    JohnPropChat Well-Known Member

    Joined:
    10th Sep, 2015
    Posts:
    567
    Location:
    Perth
    Looks like there is some confusion around actual Direct Debit and just setting up regular payment in internet banking. I was referring to Direct debit as in this definition - http://www.apca.com.au/about-payments/payments-today/direct-debit-and-electronic-transfers where the organization can actually vary the amount each payment period to account for water usage charges etc. Where as a regular payment can be setup by anyone in their internet banking and also cancel just as easily. With Direct-debit cancellation has to be agreed/informed.
     
  9. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,569
    Location:
    Adelaide, SA
    Tenant initiated direct debit is essentially just a scheduled online banking payment.
    Agent initiated direct debit is possible with certain banks. Doing this as a self manager is not possible as far as I'm aware as the banks put quite a few rules on it.
     
  10. JohnPropChat

    JohnPropChat Well-Known Member

    Joined:
    10th Sep, 2015
    Posts:
    567
    Location:
    Perth
    Suspected as much. Thanks, DT.