Private Landlord asking for rent by Direct Debit

artychap

Good morning!

Me and my partner are about to move into a new flat. We've signed an assured shorthold tenancy as normal, with the contract period beginning from the end of this month.

Anyway, when asking the landlord how she wants the rent and deposit paid, she said "direct debit", and has given me her bank details.

Now looking into it -- and I should say now that I myself did not know the extent of the difference before -- it seems that she may by conflating "direct debit" with "standing order". In other words, after I looked into setting up a direct debit, it seems unlikely that this is what she meant. She's a private landlord and the payments would be made to her personally. She also just gave me bank details, not a direct debit mandate form.

It seems to me like a simple mixup (I've heard 'direct debit' used incorrectly in an interchangeable manner with 'standing order' lots of times), and obviously the first thing to do is to email her asking for clarification, which I have done. I am awaiting a reply now.

But in case she comes back insisting on receiving payment by direct debit, I guess I need to know: what should I be asking for if she wants payment by direct debit? Is a direct debit not something that would have to be set up almost entirely at her end (the "originator") with me offering simply signed approval or would I be expected to arrange it with my bank? All other experience I've had of DDs has been to just fill in a mandate form (with energy companies, phone etc) but is there another way of doing it that I am just missing?

kingstreet

If she does mean direct debit, you sign a mandate and this allows her to deduct the payments from your account each month. It is highly unlikely she has the facilities to action this.

By providing you with her account details, it's plain she is confusing direct debit and standing order. You set up an SO with your bank, instructing them to pay your rent to your landlord's account on a set date each month, until you give instructions to stop.

artychap

kingstreet wrote: »

If she does mean direct debit, you sign a mandate and this allows her to deduct the payments from your account each month. It is highly unlikely she has the facilities to action this.

By providing you with her account details, it's plain she is confusing direct debit and standing order. You set up an SO with your bank, instructing them to pay your rent to your landlord's account on a set date each month, until you give instructions to stop.

This is what I suspected. I just want to make sure that if I have to (diplomatically) point this out, I'm on solid ground.

Thank you enormously.

martinthebandit

artychap wrote: »

This is what I suspected. I just want to make sure that if I have to (diplomatically) point this out, I'm on solid ground.

Thank you enormously.

Why point it out at all? Just set up a standing order, job done

artychap

martinthebandit wrote: »

Why point it out at all? Just set up a standing order, job done

I just prefer to know where I stand and to ensure there are no misunderstandings when I have a contract with someone!

BitterAndTwisted

Just pay the first month's rent and deposit by direct credit and set up a standing-order for subsequent months. I would never in a million years give a landlord a direct-debit mandate but this landlady doesn't seem to have given you that particular form, so there's no problem.

ValHaller

artychap wrote: »

I just prefer to know where I stand and to ensure there are no misunderstandings when I have a contract with someone!

You can just say that you thought a Standing Order was a Direct Debit, if challenged.

Personally, I would not give a private landlord a Direct Debit mandate.

chris_m

I don't think that individuals can set up Direct Debits as a recipient, the banking system doesn't allow it. The only way they could is by using an intermediary company.
I have little doubt that the LL in this case did mean Standing Order, just got the name wrong.

I'd recommend that the OP just sets up a standing order - but for a date a few days before the rent is actually due, to ensure that it does hit the LLs account on or before the due date even if a weekend or, worse, a Bank Holiday weekend gets in the way and delays the payment.

anne0411

Regarding direct debit or standing order - I know of ppl (tenants) who have done this (LL set up DD, they use a std form & hand it in to bank). Upon moving out LL used DD function to withdraw more money to cover alleged damages! This is what DD is for, as in DD for credit card the amount is and can be variable. Set up your own SO.

melanieconway

artychap wrote: »

I just prefer to know where I stand and to ensure there are no misunderstandings when I have a contract with someone!

I am confused why you have a problem with this. Unless she is a business with an originator's identification number and has given you a DD mandate to complete then you are not signing up to a DD mandate! She is just confused and wants you to see up an SO, so just set the thing up and have done, simples.

I am totally confused as to why you would think this would have an impact on your contract as you have stated you SIGNED a 6 month tenancy, THAT is your contract. In your contract you are obliged to pay rent etc under the T&Cs outlined, whether you pay via cash, bank transfer, SO, or gold bullion, it makes no difference, you are obliged to pay the rent in the currency dictated via any means (unless the T&C specifies a method).

If the landlady starts getting antsy because you are refusing to pay via SO and are paying by bank transfer instead, so long as you're paying on time and for the right amount, they can't do anything, except just refuse to renew the lease after the 6 month end date.

slyracoon

She means standing order. If she meant direct debit she would have given you a mandate to fill in and not her bank details.

Every private landlord I have used uses standing order, I ow pay via direct debit but my current home is owned by a company and not a private landlord.