Centrepay Charges: Funny

[TMNT]

today I get a statement from my agent, and last month I got charged

06/12/13 centrepay $0.99
06/12/13 centrepay $0.99
06/12/13 centrepay $0.99
06/12/13 centrepay $0.99
06/12/13 centrepay $0.99

13/12/13 centrepay $0.99
13/12/13 centrepay $0.99
13/12/13 centrepay $0.99
13/12/13 centrepay $0.99
13/12/13 centrepay $0.99

20/12/13 centrepay $0.99
20/12/13 centrepay $0.99
20/12/13 centrepay $0.99
20/12/13 centrepay $0.99
20/12/13 centrepay $0.99

27/12/13 centrepay $0.99
27/12/13 centrepay $0.99
27/12/13 centrepay $0.99
27/12/13 centrepay $0.99
27/12/13 centrepay $0.99

Thinking it was clearly a mistake, I called and got told, now my 3bdr house is occupied by 2 pairs of couples and a single guy, all who decid to pay by centrepay every week

haha, what can I do, since I did agree to centrepay originally

 

[Scott No Mates]

Tell the agent that you agreed to one payment charge only, someone else can wear the other charges.

 

[DaveM]

Your PM should reject split payments. Or increase rent by $5 a week

 

[datto]

Wow, Centrelink now charge for what was a free service? Onya Mr Abbott..pass the fees onto the end user.

 

[Scott No Mates]

Perfectly correct Datto but it is the tenants who should be billed.

(I know that the LL is getting a benefit by receiving a timely payment but. ...)

 

[DaveM]

Wow, Centrelink now charge for what was a free service? Onya Mr Abbott..pass the fees onto the end user.

Or a particularly malicious tenant could, say, pay their $200 per week in 200 x $1 increments, costing the landlord $200 in transaction fees to receive their $200 rent.

 

[pinkboy]

Or a particularly malicious tenant could, say, pay their $200 per week in 200 x $1 increments, costing the landlord $200 in transaction fees to receive their $200 rent.

Seems perfectly legit.

I might see if my shed landlord will accept this. Problem is I would have to do 10,000/mth transactions, which might take some time.


pinkboy

 

[CHAOS]

Hi TMNT

I have recently had a new tenant move in and paying through Centrepay. My statement reads Centrepay Bank Fees $2.97!

I would like to know where I agreed to this fee - or at the least would have liked the courtesy of being informed prior that this fee was coming. Because the rent would have been $5 more pw.

This is the part of resi investing that annoys me. Other businesses can pass on their cost of doing business through price increases. Eg statement fee $4.00 is no longer part of the 7.7% management fee (rent collection fee it should be called because they charge you separate fees for tribunal, attendanace and registered mail etc). Then we get hit with the fees for tenants using Centerpay.
If the tenant is not going to pay it - the PM should as part of their 7.7% - as part of their cost of doing business of collecting the rent.

Small stuff I know - but it adds up. A $10 rent increase at next renewal leaves $3.33 in your pocket ($2.97 for new CP, $2.97 for last 12mths CP, and 73c in PM fees). Then rates and water go up so you are essentially going backwards.

Big Picture. Think Big Picture. Positive Mindset! Pros out weigh cons!

 

[Sez]

For some reason Centrelink has always charged agents for the centrepay of rent. I've had landlords and tenants both agree to put centrepay in place and we have increased the rent by $5 per week (as others have mentioned) to cover the fortnightly bill of $0.99. It's usually something I've used in area's where non payment of rent is a huge problem so the landlords have been happy to pay the charge (that I told them about) to ensure rent is paid! .

 

[callander]

Centerpay, they actually pay the agent rent less the charge/fee
So the agent only receives e.g. $200 less $0.99 = $199.01

 

[Peterw]

Obviously the tenant are on some sort of benefit from the government. The benefit to an owner is it lessens the risk of late or delayed payments. The conditions of the program are that the tenant is not charged for the service. We received a call today, that they wanted to do an audit of our records to confirm that the charge had not been passed on to the tenants. I wonder how much it will cost the department to audit that we have not charged the tenant the Dollar.

 

[TMNT]

Obviously the tenant are on some sort of benefit from the government. The benefit to an owner is it lessens the risk of late or delayed payments. The conditions of the program are that the tenant is not charged for the service. We received a call today, that they wanted to do an audit of our records to confirm that the charge had not been passed on to the tenants. I wonder how much it will cost the department to audit that we have not charged the tenant the Dollar.

yeah, we arent discussing hte pros and cons of centrepay,

I originally agreed to this because on the recommendation of the agent, and my personal experience, offering cetnrepay is almost a must in shabby areas,
obvisouly a tenant can cancel centrepay at anytime, but its less tempting andlikely that they willuse their rent money on whatever and then cry poor,

thats the whole idea on it,

so Yes I did agree with it, possibly in writing, but naturally, I didnt expect or even consider that there would be 5 payments per week.

 

[CHAOS]

As this centrepay thing is new to me I checked it out. It is a service for businesses and organisations to assist with the administration side of things.
The real estate agency signs up with them and agrees to the fees for deposits.

I asked why the $2.97 and was told if the person is receiving two types of payments, they could have nominated to have half taken out of each on each payment day and hence two fees. As TMNT mentioned the tenant / benefit recipient can stop these payments at any time. Centrepay sends statements / payment history to the REA.

My agreement with the REA is to pay 7.7% management fee which includes the collection of rent. They have outsourced this collection of rent - their business has signed up to Centrepay - who is actually collecting the rent for them. So I am paying for the collection of rent twice.

My position is slightly different in that I was not told about this by the REA. I have had a long term pensioner tenant who I knew had his payments directly paid from his benefit and I have never received a fee for this from that REA. So this was new and a surprise and not something I was aware of.

 

[alplant]

We had tenants on Centrepay and the same thing happened to us a few years ago. It started off with one fee, then two, then three and would be cancelled and reinstated at their whim.

Our Real Estate had no idea why this was happening and didn't show any inclination to find out. We tried talking to Centrelink ourselves only to be told their contract was with the Real Estate not us, and we were not entitled to any details.

We changed Real Estates.

Oh and as much as I dislike Tony Abbott in all fairness we can't blame him for this one.

 

[Jacaranda]

Nothing about the fees.

As you say you agreed and as other posts say the tenant can't be charged Centrelink fees.

It also sounds as if you didn't know who was in the property.

Why didn't PM advise you of the extra tenants?

Are all the tenants on the lease?

it is a bit hard to get rid of some of them, and if they are paying rent etc depending on the area I believe it is always the "devil you know" rather than ending the lease and then trying to get new tenants.

I had similar problem with extra tenant so agent told tenant they had to fill out rental application and if they qualified they could stay - never got the form but tenant moved out.

If all tenants are ok increase the rent when next possible.

I would be having a go at the PM and find out what they know or dont know.