QUESTION: I received a letter from my letting agent telling me I must give them permission to Direct Debit my account to pay the rent.
I do not use Direct Debit with any bill because I disagree with the process, basically permitting them to stick their hand in to get their funds at their discretion. I much prefer to do the electronic equivalent of paying them.
The letter says nothing about what will happen if I do not comply nor if the older method (using BPAY) will stop working, both of which suggest to my cynical mind that they can’t force me to switch to Direct Debit. Thoughts? – Statiscan, via the Forum.
ANSWER: The problem here is the rental agent is taking the rent from your account, rather than you giving it. This is fine until, as Forum StrataGuru Whale points out, one side doesn’t stop asking for the money when they should.
Legally, the rental agent is only required to offer one method of payment that doesn’t require you to pay an extra fee. But if the bank charges fees for direct debits this might not be acceptable.
In Victoria the Residential Tenancy Act simply says “The rent under a tenancy agreement is payable in the manner (if any) specified in the agreement.”
In Queensland, according to this Tenants Union factsheet, the law sets out approved ways for paying rent, including cash, cheque, EFTPOS, deposit to a financial institution, credit card, deduction from your wages or benefit, or another way agreed by the tenant and landlord.
If the landlord wants you to use a method that isn’t approved – although the mind boggles at what that might be – they must first give you a written notice that offers a choice of at least two other approved ways of paying rent. You are also entitled to be informed of any costs associated with using each proposed rent payment method.
In South Australia, this fact sheet explains that tenants and landlords can agree on pretty much whatever method the like but if there is rent book or card system, the costs and charges related to that must be borne by the landlord.
If the landlord wants to change the method of payement and the tenants doesn’t agree, they can take it to the Residential Tenancies Tribunal where “both parties will be required to put forward arguments to substantiate their desired method of payment.”
In the ACT the law says the tenant and landlord can agree that the rent can be paid electronically (the key word there is ‘agree’). In WA, how you pay the rent is the least of tenants concerns with a massive overhaul of tenancy regulations coming in on July 1st. You can compare the current and future regulations here.
Meanwhile for our reader in NSW asked to arrange a direct debit, the general advice seems to be stick to BPAY until such times as they demand otherwise then, in NSW, call Fair Trading on 13 32 20.
You can ask your rental question on the Flat Chat Forum.