Paying the rent

Important links

When you move in to your new place, there are some basic responsibilities that you need to be aware of. The most important is paying your rent on time.

How to Pay Your Rent

Whether you pay weekly or monthly, the rent must be paid in accordance with the directions your property manager or landlord has determined. You could be offered a number of ways to pay the rent:

  • At the real estate agents office: this could be done with cash or a cheque. Many property managers prefer not to handle cash payments and now encourage electronic payment or use of ‘rent payment cards’.

  • At the Bank: deposit cash or cheque or transfer funds into the nominated bank account.

  • Direct Debit: you can pay direct into the bank account specified. You can do this manually or set-up a regular payment. If you have access to online banking this is simple to do and it keeps a good record for you.

  • Rent Payment Cards: A special rental payment card may be offered to you by the property manager or landlord. This is a card that has a unique number and pin code that identifies the rental property you are making payments for.

  • These cards allow you to make payments over the phone and internet (and even initiate payment via SMS in some cases). These cards allow you to make safe and convenient payments as well as log in to see your history of payments.

How to Make Sure the Rent Gets Paid!

The lease that was signed for rental of the property is a contractual document. This must be taken seriously. Make sure everyone in the house understands that ‘paying the rent on time is important’. The people whose names are on the lease are ultimately responsible for the rent and lease conditions.

You may be paying equal shares or an agreed split of the total rent, either way make it clear to everyone who is contributing how much is due and when it is due by.

Paying on Behalf of a Group

One person in the house should be nominated as responsible for collecting rent from each of you, and they make payment. You can collect the rent a number of ways, from the old fashioned ‘cash in the rent jar’ or get payments made to a nominated bank account, whether it be somebody's own or a separate ‘rent account’ (note that some banks provide ‘fee free’ accounts, on which you can put all names on the account. It's wise to require more than one signature to the account for withdrawal).

The best way is to set-up an automatic transfer into the account. Whichever way you choose, keep good records and follow up immediately on anyone that has missed a payment. Make payments regularly and it's a good idea to do so when you get paid, the last thing you want is to get to rent day and have no money left.

If you miss a rent payment or can't pay all of it, communicate the circumstances quickly and honestly to your property manager or landlord. Remember that landlords have rights, and can take legal action against you to recover the rent and their costs, or even evict you.

Landlords and property managers will want an easy resolution just like you, so work with them first. In the event that you find yourself in legal proceedings, contact the relevant ‘tenants information service’ in your state. See Important Links.

Budgeting

Work out how you are going to ensure the rent is paid on time and all the bills are paid. You can schedule a regular weekly or monthly meeting to discuss it. Some basic tips of helping to achieve this are:

  • Assign a person in charge of collecting the rent from everyone and making the payment.

  • Assign a person in charge of each bill.

  • Give each other warning when extra expenses arise.

  • Make bill paying a fun event by cooking dinner together and having a few beers.

  • Keep good records of who pays what!

In addition to paying your rent, keep some money aside for basic house costs like:

  • Shopping allowance.

  • Electricity.

  • Gas.

  • Phone.

  • Water usage (typically you pay for your water usage but not the actual water rates. Water payments and conditions should be explained to you and be part of your lease agreement).

  • Cable TV.

  • Cleaning.

  • Gardening.

Costs You Don't Have To Pay For

There are some items that you don't have to pay for:

  • Council rates.

  • Urgent or other repairs needed outside of ‘reasonable and fair wear and tear’.