standing order mandate

zarathedog

Hello,

Im going to be letting my house out next month, and the tennant is going to be paying by standing order. My question is do people normally let the tennant set up the SO themselves or do use a mandate. I have seen lots of SO mandate templates on the net. Are these acceptable to use or do you need to get the paper work from the bank? What happens with the mandate do you get the tennant to fill in his name and bank details sign and then just send it to his branch?

tbs624

Some LLs prefer to get the T to complete the SO mandate and then the LL ensures that it gets taken in /posted to the T's bank.

Some Ts fail to understand that if their rent is due on say the 12th of the month then the SO will need to go out two or three days earlier to ensure that payment arrives at the LLs bank on the 12th. LLzone have a proforma on their website or you can type up your own.

G_M

You can either leave it up to the tenant to arrange - after all it is the tenant's responsibility to ensure he makes rent payments regularly and on time - or you can 'assist', thereby making sure it is done, to both your advantage.

There's a mandate here. Complete your bank details, get the tenant to complete his bank details etc and sign, then take to his bank.

zarathedog

Thanks for the mandate template, just printed it off now. just a quick question regarding it. what is the difference between the date of first payment and payment due day or date?

Madjock

A standing order mandate is really not your business. A standing order is set up by the person who wants to make the payment from their account. A direct debit mandate is your business, as you send that to your bank to instruct them to claim the payment.

The difference between the first date and the due date is down to the time of the month when the mandate is received at the bank, as they take 10 days (I think) to set up, so if they get it on the 24th of the month then it is likely that a payment due on the 1st of the following month would not be sent on time. You therefore have to advise the bank when the normal due date will be following the initial payment.

theartfullodger

Quite: Tenant (only 2 "n"s please...) can set up mandate and then later change date/cancel/ run away/trash your house.

If you don't like those possibilities, find another business to be in...

Cheers!

Artful

clutton_2

small landlords cannot set up direct debits - these are usually for much larger organisations...

some banks will only accept the S/o on their own paperwork and if it is handed in/posted to them by the account holder,

others will accept any old form as long as it has a verifiable signature on it

elfen

Oh, I had an s/o form from my landlord and set it al up online. A lot less fuss doing it that way