How Rent is Paid & Rent Cards - Interesting Read

[Falcon_XR6]

Hey guys,

Of the members on this website that rent a house, how is your rent paid and what choices of payment were made available to you?

The story in the second paragraph was run by Sydney Morning Herald. I thought FF readers may be interested in reading if you haven't already touched on the subject, considering a lot of real estate agents are in breach of the Residencies Tenancies Authority Act with regards to methods of paying rent, I have no doubt that it is not only isolated to these areas. However in my own situation my real estate agent, claimed ignorance and chose not to communicate with me regarding how to pay rent. After months of research and endless paperwork I, only recently, finally managed to successfully sue my current real estate agent who looks after the rental property I reside in for the same reasons as mentioned in the Sydney Morning Herald article, I'd love to mention the Agent however think not incase of any legal ramifications. I managed to claim back all the addition fee’s and charges the real estate made me pay even though I was not legal obligated to incur such fee’s. I know this issue is more wide spread then most would assume, I’ve noticed an increase in people paying rent by Money Order at the post office which incurs a $4.50 fee plus an addition stop before visiting the real estate agent. Legislation on the matter of paying rent is as follows, Tenants must be given at least two ‘approved methods’ of paying rent. Approved methods being Cash, Cheque, Deposit to financial institution, Credit Card or Eftpos. Why would anyone willing incur additional ridiculous fees by signing up to a Rent Card system which has a sign up fee, weekly or monthly fee as well as percentage of ANY rent paid weekly or a $4.50 Money Order. I took a look at a real estate agents website ‘Switch Reality’ as stated on there website only offer 1 approved method of payment being the bank cheque. A clear breach of the Act and the evidence is in clear view of everyone. Another company in breach is Rentmyproperty.com.au formerly named Waterman’s Property only accept Rent Card, Money order or Bank cheque another example of only 1 approved method of paying rent, this is evident when you view the company’s website. People (renters) shouldn’t have to go to so much trouble to have justice, most people assume if an organisation is saying something then it must be true or most people would have given up on seeking justice or simply get turned away from a potential home because some may not want to incur additional fees on top of rent money even though the Agents arn't legally allowed to. I really think the Agents these days have too much power, or you could say power of persuasion as it seems no one or few people are game enough to stand up to them.

Sydney Morning Herald Story,

TENANTS have been urged to question any agreement that forces them to pay convenience fees to pay their rent. A spokesman for the NSW Tenants Union, Chris Martin, said agents were turning to third-party service providers to limit their costs. The providers collect their fee for the service directly from tenants. "We think it's objectionable that tenants should be asked to pay for the privilege of having their rent collected from them," Mr Martin said. "It means that [real estate] offices can go cashless and their insurance premiums and their administration costs are reduced and it's the tenants who are picking up the tab." The Minister for Fair Trading, Virginia Judge, said she was concerned some agents were giving tenants the impression they had no choice but to sign up to the system. “If you receive a letter saying your rent must be paid in a different way – whether you have been using Bpay or direct debits or a traditional rent book – you do not have to." Ms Judge cited one case in which a tenant was advised to destroy his account book as it would no longer be accepted, and he would be have to pay an upfront monthly fee, a payment fee, a void payment fee, a statement fee and a cancellation fee should there be a problem with rent. Under another system it costs a tenant $1.50 to pay their $250 weekly rent, or an extra $230 in fees a year if they opted to do so by credit card. The chief executive of Raine and Horne, Angus Raine, whose company uses the Corum Group payment system, said many tenants preferred it to paying direct debit from their bank accounts. "It's now taken for granted you have to pay for services," he said. But Mr Martin said that unless it was specified in a tenancy agreement, renters were under no obligation to use the system. Ms Judge said draft legislation, open for public submissions until next month, would force agents to give new tenants at least one way to pay rent free of charge. "This would not disadvantage landlords. These fees are collected by the companies operating the rent payment cards," Ms Judge said. The Real Estate Institute of NSW said any changes to the law would ultimately hurt tenants by leading to rent rises. Brooke Mather, of Cronulla, said she would be unhappy if she had to change from a system that let her pay her rent into her agent's account. "You're already paying so many fees ... I think it's just a bit of a rort."

Any thoughts or comments?

[gcg2503]

Wish my tenants would just pay on time......

[Charliewool]

Wish my tenants would learn sentence breaks and paragraphs!!!

[Mr Hardware]

Originally Posted by charliewool

Wish my tenants would learn sentence breaks and paragraphs!!!

hahaha

[buggerlugs]

Mine pay via EFT fortnightly

[fordomatic]

i pay mine via bpay, every fortnight. but yeh i wish my tennants would pay on time as well. i know i pay mine on time as i know how annoying it is.

[opto]

I dont pay my rent

[Iggypoppin']

Is cash still accepted? My mate ben rents his house out to two uni students, takes cash. Might only be accepted because they're hot uni girls.. Who knows..

[Yellow_Festiva]

One property I rent out that is managed by an agent gets it's money from centerlink directly. They are charged 99c (or 1.98) per transaction per month. (this charge is passed on to me).

Not sure who is 'meant' to pay this, but the fact that rent is paid on time makes it worth it. Anyway, anything that costs me ends up being a deduction.

I'll be out of the game soon anyway. When I settle down and start a family I want to have my own place paid off and not have to worry about paying bills, paperwork and the usual hoo haa involved with owning investment properties.

[ebxr8240]

My tenants pay on time.. The rent is not as expensive as other houses in the area..
Better off being $20 under max rent and keeping long term tenants than chasing every cent...
I keep maintenance up on them, replaced plenty of stoves and for some reason hot water heaters..

[GT69]

I pay an addition $2 per rent payment for Bbay. So Right now im 8 weeks in advance....which cost me $2 extra.