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Mortgage/Rent Payment Methods

By: Beth Morrisey MLIS - Updated: 6 Jul 2010 | comments*Discuss
 
Rent rent Payments paying Rent

As with most of today’s shopping methods there are a variety of payment options for both rents and mortgages. Cash, cheque and direct debit are perhaps the most popular methods, though some renters also might squeak by with a little bartering if they are lucky.

Cash

It’s probably not likely that you’ll be going to your mortgage provider each month with your lump sum amount all counted out in cash, but some landlords may still ask renters to pay in cash every week, fortnight or month. If at all possible try to avoid this payment method. Not only does it mean that you’ll need to keep a significant amount of cash in your home until you can give it to your landlord, but it also means that you will have less proof of payment than you would with other methods. At the very least try to make sure that your landlord issues you a receipt for cash payments each and every time you make them and be sure to keep a rent book or similar payment tracking method up to date at all times.

Cheque

Both mortgage and rent payments may be made by cheque and though it means that you’ll need to keep track of when your payment is due – and when you’ll need to mail your cheque to make sure that it arrives in time – it’s also a great method for getting proof of your payment. Not only will you have the paper proof in the form of your cheque (and any carbon slips related to the cheque), but both the bank from which the payment is made and the account to which payment is made will have records as well. Just another reminder though: if you do pay by cheque try to keep your cheque book up to date so that it won’t matter when the cheque is cashed, you’ll already know that the payment has been “spent” and should not be considered part of your account balance.

Direct Debit

Again, both mortgage and rent payments may be made by direct debit and a vast number of people enjoy the hassle-free nature of these transactions. Setting up a direct debit is relatively easy. Check with your bank for exact details, but for the most part you’ll just need to specify the amount to be debited, where/to which account it should be sent, and on which date it will need to be sent. Once you have this on-going debit arranged you just need to check your account statements around that date to make sure that everything has been sent correctly.

Bartering

Bartering is generally not considered a modern form of currency, but for some lucky renters a landlord might be amenable to an exchange of services in return for a reduced rent charge. For example, if a tenant is a gardener who would be happy to keep the landlord’s gardens to a professional standard then there might be a rent reduction introduced. However, before offering, or accepting, a bartering agreement be sure to check your local laws and regulations to ensure that your arrangement is appropriate.

The rent or mortgage payment option that you choose will likely be a matter of personal preference. The important thing is to pay in full and on time – how you do so is a private matter between yourself and the landlord or mortgage provider to whom you owe your payments.

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