With multiple innovations at our disposal resulting from the availability of a digitised financial system, tenants can honour their rental commitments using various methods. Landlord direct debit option for paying off rent is one of the increasingly popular approaches for tenants. Both the landlord and tenants need a safe and efficient way to cater to the periodic transaction related to rental payments. If you are new to the rental property domain, you might not be well acquainted with the direct debit process. What do you mean by direct debit? What is the benefit of direct debit? Many such inquisitions can come to your mind. Our RentOnCloud experts are here to enlighten you with some critical aspects of the direct debit system for tenants.
Direct debit denotes a transaction-related instruction given to your bank to allow the authorised account holder to collect payment from your account on a specified due date. It is also called a pre-authorised debit.
Thus, a direct debit instruction by a tenant for his rental payment will allow the immediate withdrawal of the defined rent periodically by his landlord’s bank for being credited into his account. Landlord direct debit is a hassle-free alternative for tenants to pay their rent.
One can usually avail of the following types of payment options while using direct debit to mitigate their rent obligations.
This option allows making the due payment on any given working day of the week from Monday to Friday. Usually, the banks carry out weekly payments under the direct debit service 48 times in a year.
Under the fortnightly schedule, your landlord direct debit payment either in the first or second week of every fortnight of the rent payable on a working day between Monday to Friday. The banking entities mostly offer a fortnightly direct debit options for 24 payments annually.
The monthly direct debit option authorises the rental payment once on any given date between the 1st and 28th of the month. Tenants get the facility of direct debit 12 times a year under the monthly payment choice.
While following the bimonthly schedule, banks usually clear direct debit transactions twice in a given month. These direct debits can occur on any two dates in a given month from 1st through to the 28th day as per your requirements. Bimonthly or twice monthly direct debits get cleared 24 times annually.
If you are still on the fence about whether or not to opt for direct debit and what is the benefit of direct debit for rental payments, we can help you browse through six sensible pointers that indicate its utility.
In today’s hard and fast life, we want to optimise our tasks as much as possible. Direct debit helps you in avoiding the troubles associated with going through the online payment initiation process every time or visiting your tenant with cash during each rent payment cycle. Your rent will get deposited automatically in a safe and timely manner into your landlord’s account. You save a lot of your critical time using landlord direct debit transfers.
Back in the day, both landlords and tenants often felt frustrated with the administrative issues regarding transferring and collecting rents every week or month. No landlord wants to go on knocking on their tenant’s door demanding payment each rental cycle. Direct debit assures that the rent will get deposited on the slated date without the chain of hassles that one would have to face otherwise.
Most tenants dread missing out on their periodic rental payments with the possibility of penalties regarding delayed payments. If any one of the two parties is out of town traveling during the time of the due date for the rent, the conventional payment methods of cheques or cash might lead to delays and penalties. Direct debit offers you respite from the stress of missing out on your rent on the deadline. It helps minimise instances of late penalties.
Are you worried about the trustworthiness of a direct debit option for your rental payments? Well, there is no need to fret. Direct debit services that recognised banks offer are quite secure and reliable. The deduction of the rental payment under direct debit will take place only as per the instructions and schedule that you specify. Furthermore, you have the option to make changes to these instructions anytime.
Landlord direct debit alternative comes with added flexibility as it allows tenants to set up their payments as per their requirements in line with their rental agreement. You can change the schedule, rent amount, and account details anytime without investing considerable time according to your necessities.
Direct debit comes with the advantages of on-time payments without any administrative troubles for the landlords. They are more likely to retain a tenant who showcases such sign of regularity in payments and do not cause much troubles. Tenants can expect to prolong your lease arrangement and even negotiate for a better terms once they create a positive image in the minds of their landlords.
Direct debit option surely comes with sizable benefits for both tenants and landlords. The setting up process for a direct debit transaction for your rent expense is also instantaneous with RentOnCloud powered by GoCardless. We are working on an integrated platform where the Landlord can set up their own GoCardless account. You should lower the headaches related to your ongoing rental transactions with direct debit. [Stay tuned to RentonCloud]https://www.rentoncloud.com/landlord) for more such resourceful information!