Landlord offers tenants £50 to pay rent direct debit

Chorley Community Housing in Lancashire announced the move in a bid to boost rent collection rates and make it easier for tenants to pay. The offer is open to all tenants who currently pay by cheque or standing order.

Elaine Birtwistle, arrears manager at the 5,200-home association, said: ‘We want to encourage tenants who have bank accounts to pay their rent to us by direct debit. Not only is direct debit an easy way for tenants to pay their rent it is also a more cost effective way for us to collect the rent.

‘Our staff can provide help and practical advice on how to open a bank account and anyone who opens a bank account and starts paying their rent by direct debit will also qualify for the £50 incentive.’

Under the government’s universal credit, which will be phased in from October 2013, benefit will be paid monthly direct to tenants. This has led to fears that arrears will rise as some tenants may not make regular payments to their landlord.