Why you should be using Direct Debit for rent collection
Letting agents and landlord's use many forms of payment for rent collection, the majority still use cash, cheques and standing orders. However, there is an increasing number of letting agencies and landlord's who are turning to Direct Debit to make rent collection stress free.
So why should a letting agent think about using Direct Debit when collecting rental payments? There are many benefits to using Direct Debit and they far outweigh all other forms of payment, below we are going to take a look at why you should be using Direct Debit as a payment method.
Help To Avoid Late Payments
Unlike the usual payment methods of cash or cheques, Direct Debit is automatic. Therefore once signed up to Direct Debit as a form of rental payment, rent money will then be collected from the tenant automatically at a set date each and every month.
A lot of late or missed rental payments are due to tenants dipping into their rent money before the due date, however when a tenant is aware that their payment is taken from their account automatically each month, they will be less inclined to spend their rent money or they could also be hit with bank charges on collection day.
If you compare this to the now outdated and old fashioned rent collection method of cash or cheques, letting agents and landlord's can completely avoid having to chase tenants to collect rent owed. Threatening tenants with eviction becomes unnecessary. Tenant's benefit too as they do not need to worry about remembering to send cash or write out cheques, with Direct Debit the admin is all done up front.
Save Time and Reduce Administration Work
Collecting rent payments in the form of standing order, cash or cheque, causes a lot of headache and admin work on the behalf of letting agents and landlords. As a letting agent collecting rent payments by cash or cheque, you will need to chase these payments, deposit them into the bank (if cash or cheque) then to add further work you will need to keep reconciling every single day to make sure funds have cleared.
If we compare this to Direct Debit rent payment using PAID & CO, the rent will be collected automatically at a set date each month once they are set up. This means that as a letting agent, landlord or even as a tenant you can stop worrying about rent due dates or having to chase up any rent that has been missed, or checking to see if money has cleared.
With Direct Debit you can immediately know what has been paid, what is outstanding and still needs to be paid. With a rent collection service like PAID & CO which completely uses Direct Debit, you can have access to a complete dashboard which will take care of everything for you.
What's more you will even be alerted when a tenant has missed their payment through insufficient funds; SMS text and email reminders are automatically sent out to the tenant and collection will be handled using PAID & CO's unique Retry service.
Modify The Payment With Ease
As with any business price change, when a letting agent or landlord needs to change the amount of rent paid to them, this process should be straightforward and smooth. However, for those letting agents and landlords still using standing orders, they will first have to cancel any current payments and then require the tenant to setup the payment by standing order, in the correct amount, all over again.
With Direct Debit this is just not the case, as a letting agent you can alter the amount of rent collected or change the rent collection day. Direct Debit puts you in complete control over the rent collection schedule and collection amount, without having to rely on the tenant to do any admin.
How To Collect Rent with Direct Debit?
As you can probably already tell, collecting rent through Direct Debit is the easiest, no-brainer option for all letting agents and landlords. PAID & CO make rent collection by Direct Debit incredibly simple, so easy in fact that a new scheduled collection can be setup in under ten minutes.
With built in features such as; friendly SMS text and email reminders for tenants, an easy to navigate dashboard which reveals clear reconciliation of all rent due versus rent actually collected and the unique PAID & CO Retry service which will attempt to take payment again if the initial collection fails.
If you would like to discuss how to setup Direct Debit payments for your tenants, please feel free to give us a call on 0330 3337 186 or for more information about our services and the features of PAID & CO's dashboard head on over to the Agent's page.