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Using Direct Debits Through GoCardless And Paypal To Receive Your Rental Income

June 2, 2015

Posted by Edd Wright on 2nd June 2015

Do you spend most of your precious free time chasing tenants to pay their rent, when you could spend this time enjoying the benefits of your hard work? If this is the case, then we have a solution!

The Diagnosis

Having taken on a new project, you will be eager to get your property rented out to start getting a return on the money you have invested (whether this is to repay investors, or to reap the benefits of your hard work). Who doesn’t love it when you have reliable tenants who pay their rent on time and never pose a problem? However, every now and then you will come across a tenant who will hold you back and not pay what they owe. This will mean that you have to spend precious time (that you could be spending with your family), ringing up asking them to pay and this can even cost you money if you later need to take on court proceedings!

The Treatment

GoCardless is a BACS approved bureau and an FCA authorised institution which helps make quick and simple payments for you and your tenants. The whole system is done online which makes it easy for tenants to authorise payments in minutes, especially if they use a smartphone. And do you know the best bit? It’s free to set up! GoCardless costs just 1% per transaction up to a limit of £2, and there are no hefty monthly fees. The system will make your life stress-free and allow you to do other tasks as you don’t need to keep a track and reconciliation of your payments – it’s all done for you. Once the Direct Debit agreement is created, neither the tenant nor yourself need to do a thing, as payments will automatically pull through, meaning you never have to worry about being paid late again! And if data security is holding you back from taking the big step, you need not worry. All bank details are stored using military-grade RSA encryptions that communicate only over secure channels (2). A similar alternative is the use of Paypal Mobile (3). If you don’t like using Direct Debits and GoCardless isn’t the system for you, then Paypal Mobile is the next best thing. Like GoCardless, Paypal doesn’t have any hidden set up fees or monthly costs, and by having the mobile version you can take payments anywhere, anytime. You are in control! The benefit of this is if you have a tenant who owes rent, you can call them up and through the use of background calling on smartphones, you can use the Mobile Express Checkout system at the same time and take payment then and there. So if chasing up tenants for rent on a regular basis gives you headaches, let your trusty computer or phone ease the pressure! These two easy to use systems can help free up your time and ensure you never miss a payment again, giving you the time to sit back and enjoy the benefits of your hard work.

 

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References

(1)  https://gocardless.com (2)  http://searchsecurity.techtarget.com/definition/RSA (3)  https://www.paypal.com/uk/webapps/mpp/sell-mobile



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Telephone: 0115 939 4606
Email: simon@optimiseaccountants.co.uk