I think as things stand we do seem to be going cashless and onto plastic or phone wallet even? But for now I’d be happy to take cash has it is legal tender and it would justean calling 8nt9 the bank or post office to pay it in. I suppose you could always ask for a direct debit but have a feeling that some landlords may find this disssapointing and maybe takimg it in cash, can you add an admin charge?. I’d take the cash though we know it would be better to see those figures on your bank balance. At least it’s payment and you’ve not said it’s late 0ayment so yes until cash isn’t used I guess I’d have to accept it. Your tennant may find problems paying cash for a few services, bit most bills can be paid at the post office and it would possibly take some change to occur before people do start to use plastic in the everyday way that we all seem to do, well apart from the occasional one?
Kind regards Lynda
long live cash i say… i do not trust internet banking and will never do it
It may be hard times, but it’s also a bad idea to allow your tenant to start their term in your property in debt already.
The bond is only 5-weeks rent, if they haven’t got that much in reserve, I would be cautious about renting to them anyway.
Lots of opinions re cash, some people get paid in cash and prefer it so they can budget better, some are not good with online stuff.
Verification checks are all good practice and some a legal requirement to ensure the right to be in this country and work.
If you want to the avoid issue stipulate payment on the x of the month via standing order. It isn’t illegal to ask this. If you have a cash situation its down to you following checks. It also saves the hassle of collection and giving receipts.
The only time Ive ever taken cash is when times have been tight for a tenant and they didn’t want auto payments at the bank causing charges beyond their control.
So cash payers are very rear and on a case by case basis.
Correct choice, cash = untraceable tenants.
not sure what you mean by ‘untraceable tenants’ . if you haven’t done your pre tenancy checks and obtain the relevant documents before handing out keys, rent payments via bank transfer would be the least of your worry when things go south. If you or the authority want to trace a tenant, if they can’t use the documents and IDs to trace, chances the bank trace would be useless.
Also don’t ever believe you personally can trace anyone because you have their bank details. the police will throw out your case, quote ‘its civil’ and request you go to court. The tenants bank may honour your request to free account but that can’t only last 3 days if no further ‘legal’ proceeding occur.
i know a guy who paid a mobile mechanic to repair his car. did a bank transfer so the mechanic would get parts. The mechanics disappeared. case reported to the police. bank alerted. account frozen for a week. the police did nothing other than suggest court proceeding. after a week, the bank was unfrozen . nothing happened.
my point is Cash is a legal tender in UK. its either you accept it as rent payment or you don’t. no one would crucify you if you accept or dont accept
You are wrong. Further I have been a registered with FCA Money Laundering Officer for over 20 years. Keep taking cash and HMRC will have you
i have taken cash, direct debits and standing orders for 50 years ,as long as you are honest there is no problem
there is no point arguing this point.
Anti Money Laundering (AML) is a regulated service aimed at regulated firms. as a private landlord are you registered with the FCA? are you a regulated firm? who is your AML reporting officer?
can’t argue this point with you. if your average monthly rent of £600 for providing shelter for tenant is what you tie yoke around your neck for, good luck with that.
here is how a smart guy would probably move the money around -
- buy latptop £650 from currys and another one from argos, pay cash
– sell it on ebay £150 less each. layering and placement and integration complete
– buy used cars from road side mechanic, pay cash. sell it on gum tree or ebay for some amount less… again placement and integration complete
repeat on a monthly basis. Landlord leave your life and don’t subject yourself to unnecessary burden. cash is a legal tender in UK and its totally legit to accept it as rent payment. if you choose not to, thats your prerogative
you are wrong when you say that tenants are not asked how much rent they pay I have shop tenants and every year they are asked how much rent they pay and who the landlord is
I would say it’s your choice.
I actually asked a new tenant to pay the initial monies in cash as the tenancy started on a weekend and I didn’t want to run the risk of delays with an online transfer.
I wouldn’t want to be collecting rent every month in cash though, but it might work for some landlords.
Makes no difference. If you are happy to accept, take cash & give a receipt. Simples. The world can still use cash.
That is not true that ML 2017 applies ONLY to regulated firms. The average rent when looking at a total for the period of a lease is the consideration not a one off. If the total amount, at any point hits £10,000 at any time, which most leases will, you are subject to source of funds and or source of wealth checks, which are both slightly different. If the person is paying the rent by employment you verify this, if the person doesn’t work but has personal wealth to cover the full length of a lease, you must verify this source.