Paying by Direct Debit

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    Paying by Direct Debit

    I have been reviewing a tenancy agreement received from a highly recommended Online Agent. I happened to notice that it specified "You must pay the rent for the month from one account and by direct debit." As private landlords unless they have merchant bank status can't receive payments via DD could if gone unchanged I have created a tenancy where in fact I don't allow myself to be paid rent even if the tenant wished to?

    I have included this in "Take a break" as if it does I feel quite relieved that I've had it changed

    #2
    I'd not "highly recommend" one sent out by them then.

    Use the set of documents from your landlord association (RLA or NLA) - notices, tenancy, etc etc ... or the **free** one from Mother T..
    https://www.gov.uk/government/public...ssured-tenancy
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      5* Trust pilot and have been good to deal with and tenants found very quickly. I understood they were using the RLA agreement. It just got me thinking of the consequences.

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        #4
        Originally posted by shearne View Post
        tenancy agreement received from a highly recommended Online Agent.

        Originally posted by shearne View Post
        it specified "You must pay the rent for the month from one account and by direct debit."

        Hmmm......

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          #5
          Originally posted by shearne View Post
          5* Trust pilot and have been good to deal with and tenants found very quickly. I understood they were using the RLA agreement. It just got me thinking of the consequences.
          The RLA agreement has copyright RLA on it...(just checked).

          Someone somewhere is being dishonest (I don't mean you!):
          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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            #6
            Unless it's based on it. I've done my homework on them and they are working with the NLA quite a bit so quite happy to use their service but it just shows you read everything !!!!

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              #7
              Change the tenancy agreement to Standing order. If they refuse, seek another agent.

              You must have the tenant instruct his bank to pay you, rather than an agent ask for the money.
              Next thing you will know, is the D.D. ( if it's possible for them to do a D.D. ) will be missed one month, and the tenant will be on the phone asking why 2 months rent was taken out !

              D.D's are for VARIABLE amounts.
              Standing orders are for FIXED amounts.
              Your rent is not variable, therefore Standing orders prevail.

              edited.................
              If I was your tenant, I would refuse to allow an agent to take out as much money as they wanted from my bank account via a D.D.

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                #8
                I had the agent change from DD to Standing order. The rent is to come directly to myself. Just thought it worth highlighting that it's worth checking the payment method where an agent is providing the TA. If I hadn't picked it up it appears that it could have created a scenario where if the tenant was dishonest that they didn't need to pay the rent as they would be unable to pay me as an individual via the means I had stipulated in the TA.

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                  #9
                  Originally posted by shearne View Post
                  I had the agent change from DD to Standing order.
                  Good for you.

                  Although a basic landlord would not be able to issue D.D's, the rent still has to be paid, and cash is the lawful currency.
                  If someone after they took a tenancy, closed their bank account, it does not mean they can live rent free as they can no longer have a standing order payment via bank transfer into your account.

                  S.O's. and D.D's. are an aid to cash transfer; not a substitute..


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