In this blog, we will discuss the benefits of direct debit at The Switch, how it works in Australia, and some key points for tenants to keep in mind when using this payment method.
Paying rent can be a challenging task for tenants, especially when they have to keep track of multiple bills and expenses.
At The Switch, one of the ways to make the process easier and hassle-free is to select direct debit as a payment option.
Firstly, let’s discuss what direct debit is and how it works.
Direct debit is a payment method where a tenant authorises their bank or credit card company to automatically deduct their rent payments from their account on a regular basis. This can be done on a fortnightly, or monthly basis, depending on the agreement between the tenant and the landlord or property manager. Direct debit is a convenient and hassle-free way to pay rent, as tenants do not have to worry about remembering to make payments or missing deadlines.
In Australia, direct debit is a widely accepted payment method for various bills, including rent. To set up a direct debit, the tenant needs to provide their bank or credit card details to the landlord or property manager. Once the details are confirmed and the tenant has authorised the payment, the rent will be automatically debited from their account on the agreed date.
The Switch has made it even easier for our tenants as they can set up their card or Australian bank account by onboarding the Sorted mobile app, in which tenants can easily complete the direct debit registration process. The mobile app allows tenants to check upcoming rent payments, and payment history and the card or bank account tenants have been used anytime via their phone. Tenants’ data is also encrypted and secured. What’s more, our tenants will receive an SMS reminder 3 days prior to each rent direct debit payment date so this is a great way to manage rent payments.
Now let’s discuss the benefits of using direct debit to pay rent. Firstly, it is a convenient and hassle-free way to pay rent. Tenants do not have to worry about remembering to make payments or missing deadlines. Secondly, it is a secure payment method as the transaction is authorised by the tenant and the bank or credit card company. Thirdly, it saves time and money, as tenants do not have to make trips to the bank or pay for postage to send cheques. Lastly, it helps tenants to budget their finances as they know exactly when the rent will be deducted from their account.
It is important to us to promote the benefits of using direct debit to pay rent to tenants. One way to do this is by offering a fee-free direct debit payment option. At our property, we do not charge a fee for direct debiting from BSB/Account number, and our fee on credit card (Visa/MasterCard) is quite reasonable compared to the market – a 1% surcharge. We also accept international credit card (Visa/MasterCard) however, the surcharge will be 2.9% for using this option. This is a hassle-free offer to our tenants, making direct debit an attractive payment option.
However, it is important to note that there are some key points for tenants to keep in mind when they have a direct debit set up. Firstly, you must ensure there are sufficient funds in their bank account or credit card so rent can be debited per the agreed frequency (every fortnightly or monthly). Failure to have sufficient funds may result in late payment fees. Secondly, you should not pay by other means while the direct debit payment is in use. This is to avoid you paying via different ways for the same amount of rent due.
In conclusion, direct debit is a convenient, secure, and hassle-free way to pay rent for both our tenants and The Switch.
By offering fee-free direct debit payment options and promoting its benefits, landlords and property managers can make the payment process easier for tenants. However, it is important to keep in mind the key points discussed above to avoid late payment fees or eviction.
At our property, we prioritise the convenience and satisfaction of our tenants, and direct debit is one of the ways we achieve that.