Rent payment options and extra fees

Look beyond the advertised payment app

An agent may offer a payment platform, but it should not be the only practical choice where it adds fees. Ask in writing for every available method and the complete cost of each option.

From 30 September 2024, managing parties must offer two ways to pay rent, including a compliant low-cost option. From 1 May 2025, financial benefits received from a particular payment method must be declared in writing.

Protect your rent record

Use a payment reference that identifies rent where possible. Save receipts, bank records and the rent ledger. If a payment is missing or allocated differently, raise it promptly in writing and keep the explanation with the original transaction record.

The agreement and the offered methods work together

The tenancy agreement should state the rent amount, when it is due, and the payment method and place. Separately, the managing party must offer at least two payment options. At least one must be reasonably accessible to the renter and must not add costs beyond reasonable transaction costs such as ordinary bank fees.

Ask for the complete list before signing rather than assuming the promoted app is compulsory. Compare setup, per-payment, subscription, card, dishonour and withdrawal fees. A method that is technically available but not realistically accessible in the renter's circumstances may not satisfy the requirement; explain the practical barrier in writing and ask for a compliant alternative.

Costs and financial benefits must be disclosed

Before the agreement is signed, the property manager or owner must give written notice of costs associated with the offered methods. They must also disclose any financial benefit they receive when a renter uses a particular method, such as an incentive or share of a platform fee. Keep that notice with the agreement so later charges can be compared with what was disclosed.

A disclosure does not make an expensive method the only lawful choice. The two-option and low-cost-access requirements still matter. Ask whether fees can change, who controls the account and how payment records can be exported. Do not agree to unrelated products or permissions merely because they are bundled into a rent-payment app.

Rent cards and third-party platforms are not compulsory

A renter does not have to agree to a rent card. The RTA says that where a managing party wants a rent card used, two other approved ways to pay must also be offered. Third-party platforms that charge more than ordinary transaction costs likewise require another reasonably accessible compliant method. Save a screenshot or fee schedule if the platform is presented as mandatory.

A dispute with the platform company may sit outside the RTA's conciliation service even when the underlying choice of payment methods is a tenancy issue. Identify which organisation charged the fee and what outcome you want. Ask the agent to address the tenancy obligation and the provider to address a platform error, keeping the two complaint records separate.

When an electronic payment counts

For an electronic payment, the RTA says rent is considered paid on the day the money leaves the renter's account, provided the renter does nothing to stop or delay it. Schedule payments early enough to leave by the due date and preserve the bank transaction showing the debit date and reference.

If the ledger records a later receipt date or allocates the amount incorrectly, send the transaction record and ask for correction. Do not disclose unrelated banking activity; a cropped record can still show account holder, date, amount and reference. Continue paying on schedule while the disputed entry is reconciled so one bookkeeping problem does not create another.

Changing the payment method during the tenancy

Either side can propose a change and record an agreement in writing. A property manager or owner can also introduce methods without agreement by giving written notice that offers at least two new methods, includes a reasonably accessible low-cost option, explains associated costs and discloses any financial benefit. The renter then generally has 14 days after receipt to adopt one of the offered methods.

Before switching, confirm the first payment date, reference and what happens to the old direct debit or platform authority. Cancel only after the replacement is working and any final amount has cleared. Keep the change notice and written selection; payment-method confusion is much easier to resolve when the transition dates are explicit.

Receipts, ledgers and advance rent

Cash rent requires a receipt, and a cheque payment requires one when requested. The managing party must keep an accurate rent ledger for one year after the tenancy ends. A renter can ask for a copy at any time and it must be provided within seven days. Check it periodically instead of waiting for an arrears notice or bond dispute.

At the start of a tenancy, the ordinary maximum rent in advance is one month for a fixed term and two weeks for a periodic agreement, moveable dwelling or rooming accommodation. Rent in advance is gradually used as the tenancy continues; it is not an extra security deposit. Keep bond, rent and every other charge labelled separately in your records.