You have to provide tenants with 2 options to pay rent, and you also have to put those in the tenancy agreement.

Thanks. But what about fees? Most payment gateways charge fees to the
tenants to use it. Some tenants don’t like this, but we argue that it
actually is better for everyone because they don’t have to come into
the office or get a money order.

There is nothing in the legislation that I am aware of that states you must give the tenant a free payment option, I was always under the impression you just needed to give them 3 options. I would explain to them that a money order cost $2.50 per $1000 and payment gate pay is only $1.65 per transactions.

The legislation surrounding payment options differs between states, but if a particular payment method is stipulated in the Lease Agreement, then legally the tenant is obliged to make payments via that method.

I believe a money order is something like $4 now? A cheque is even more, and then there is the inconvenience to the tenant. Payment Gateway is only $1.65 for a bank account transaction and gives them several options to pay their rent.

This matter has gone recently before the CTTT in NSW.A particular case occured to an agency where by an exisitng tenant was asked to stop paying cash/cheques and convert to using Payment Gateway.The judge said that because the original tenancy agreement already stipulated cash/cheques/money orders that the agency could not inforce that tenant to use Payment Gateway.

Each state specific legislation will provide you with the law in relation to what agents can and cannot charge tenants in fees, my research has told me that as long as there is a third party in the transaction that the tenant signs up with and the fee is surcharged as part of the  transaction, and not direct paid back to agent then we can charge the  tenant.  The tenancy agreement must nominate the way in which a tenant pays, so when you do a lease renewal change the payment method then.

Thanks. I read in another thread about the new QLD laws. Lets hope someone clears this up.

As far as I know, normally if a payment is stipulated in the tenant’s lease agreement (whether it be an original or renewal), then they

are obliged to make payment via that method.

However, in VIC a payment method can be ‘enforced’ upon lease renewal ONLY if one wasn’t stipulated in the original lease agreement.

QLD has an entirely different set of rules :)

As of 1 July 2009, the tenant MUST be given 3 different options (pending confirmation) and advised of the cost, AND the payment will

be deemed to have been received on the day the tenant effects the electronic transaction.

Comments?

Queensland as of 1 July 2009

Two options must be provided to the tenant from the approved payment methods and as many other payment methods

as you wish althou this has to be agreed upon with the tenant and all fees are to be disclosed at the start.

Approved Methods – section 83 (4)

Cash; Cheque; Deposit to financial institution; Credit card; Eftpos; Deduction from Pay, Pension or other benefit paid to the tenant.