[Lynda Grant]

The new Residential Tenancies and Rooming Accommodation Act 2008 (the Act) brings some clarification about ways tenants may be asked to pay rent, such as by rent card.

The Act requires the method of payment and the place of payment to be included in the tenancy agreement.

An approved way to pay the rent is defined in the Act to include:

• cash; or
• cheque; or
• direct deposit to a financial institution nominated by the lessor; or
• credit card; or
• and EFTPOST system; or
• deduction from pay, or a pension or other benefit, payable to the tenant.

The lessor/agent and tenant can also agree on another method of payment.

If a lessor/agent wants rent to be paid in a way that is not listed in the Act (such as rent card or money order), they must give the tenant the option of at least two other approved ways. This applies to general tenancies, moveable dwellings and rooming accommodation agreements.

This can be by way of cash, cheque, direct deposit, credit card, EFTPOS or deduction from the tenant's pay or pension.

Lessors/agents must also inform the tenant, in writing, of any extra charges or fees on top of the rent associated with the other payment method, such as a joining, service or transaction fee.

Under the old Residential Tenancies Act 1994, lessors/agents often gave tenants the option of paying rent "by rent card or by bank cheque or by money order". The intention was to give tenants an option and avoid the "collateral contract" provisions of the old Act. However, bank cheques and money orders could have cost between $7 and $10 each time the tenant paid their rent, which didn't give the tenant a real choice.

The new changes clarify that money orders are not an approved way under the new Act, and mean that tenants will have more of a real choice, especially where there are costs involved.

During the agreement, the way rent is paid can be changed, but the tenant has to agree to the change. If the lessor/agent/provider or the tenant/resident wishes to change the method of payment, they must:

give a notice outlining the change to the other party, and
receive agreement from the other party in writing.
For more information on changes included in the new Act, go to RTA fact sheets www.rta.qld.gov.au