Ways to Pay - Alternatives to Paying Your Rent by Cash or Bank Transfer
Banking has seen some revolutionary changes in the last few years - mobile banking has become second nature and we have seen a move away from traditional banks to ones operating almost entirely online. Now is the perfect time for landlords to revamp their rent collection and collect rent quickly and easily at the touch of a button.
This week, we are going to take a look at alternative rent payment options landlords and tenants can use.
Direct Debits/Standing Orders
Never miss a payment again by organising a direct debit/standing order. This way, rent payments are made automatically on a set date of the month, meaning regular payments on a day that suits both tenant and landlord. With most UK banks now offering Faster Payments, direct debits/standing orders are usually paid and received on the same day.
Pingit
Pingit, originally a Barclays Bank service, is now available for anyone with a UK bank account to make instant payments, using just a mobile number. Barclays customers can register via their banking app, and non-Barclays customers sign up using the Pingit app and SMS verification. As well as the app, Pingit offers fobs, wristbands and even cups to make instant payments!
Virtual Banks
In the past couple of years, we have seen a rise in the virtual banking industry. With no barriers like opening hours or physical high street presence, these online-only banks have become very popular due to their ease of use, instant access and customer service. Customers also benefit from lower fees and usually, cheap international transfers with great exchange rates.
Popular online banks in the UK are Starling, and Monzo. Both of these banks are super-easy to set up (usually requiring just photo ID and proof of address) and provide the customer with a UK bank account and free card. Starling offers the facility to deposit cash at your local Post Office.
Transferwise
TransferWise is an online money transfer service, which lets you transfer money up to eight times more cheaply than with a bank. TransferWise payments in the UK and Europe are delivered within 24 hours – compared to 3-7 days for a regular bank. TransferWise has also built a “borderless” account.; like a multi-currency account, it lets you hold over 40 different currencies and send and spend money overseas easily using your contactless TransferWise debit Mastercard.
It’s quick, easy and free to open a Transferwise account via their website, and you will get a contactless debit card. Most importantly, you will be able to send rent payments directly to your Landlord’s bank account, arriving almost immediately.
Paying your rent doesn’t have to be a chore - by using one of the ideas above you can incorporate it into your daily budgeting. That way, there’s no excuse for forgetting to pay the rent!
