New Release: Cubbi Payments - Collect rent on autopilot
Update October 2017: Cubbi's vision is to make renting a property easy using an online platform that streamlines the processes of renting a property without the need for an agent. Back when this was posted having a stand alone rent payment collection service was great but since then Cubbi has evolved. With Cubbi, rent is now paid directly through the platform by default, receipts are sent automatically and we follow up the tenants by phone, email and text message if they fall behind. For peace of mind if the rent gets out of control we advice and prepare termination notices for you. Learn more about our Cubbi landlord service here
Post from June, 2016
Over the last few weeks we have been trialing our new shiny toy that we call Cubbi Payments.
The only landlord service with direct debit rent payments in Australia.
In 30 words or less, when the rent falls due Cubbi seamlessly transfers the rent from the tenant's bank account into your bank account and receipts the payment in Cubbi.
Saving you a whole lot of time and stress knowing the rent will be paid.
How it works
The first thing you need to do is add the lease terms into Cubbi and nominate the bank account you want the rent transferred into.
Your tenant will receive an email to log into Cubbi and nominate their bank or credit card they want the rent to be deducted from.
From here the rent will be withdrawn from the tenant's bank account on the day it’s due. We don’t hold onto the money. When it clears it automatically gets transferred into your bank account.
You’ll be kept updated with every payment so you’ll never skip a beat.
Getting paid on time
Direct debit rent payments is known in the industry as the best method for getting rent paid on time.
Why? Because the onus is not on your tenant to transfer the rent, it is deducted automatically.
A tenant scheduling their own rent payments (general bank transfers) is the next best thing however the big problem is, if their budget gets tight they’ll simply cancel the rent payment with a couple of clicks.
However with Cubbi payments the tenant is forced to ensure the money is in the account on the day it’s due otherwise they’ll get charged a dishonour fee (which you don't have to worry about).
In my experience having rent paid by direct debit reduces late payments by 50% compared to normal bank transfers. This is because you are in control of taking the money out and not relying on the tenant to transfer the rent.
Automatic tracking and reports
You don’t have to check your bank account or keep yucky spreadsheets, the rent gets recorded and calculated in Cubbi for you automatically.
You can see upcoming payments and add manual payments received and spent for the property.
Send a receipt to your tenant and print ledgers and reports for tax time with one click.
You may already use our late rent reminders but it works hand in hand with Cubbi Payments so if you don’t already have them turned on you should.
If the rent is not paid (no money in bank), your tenant will start receiving text messages and emails to pay the rent. This is all done automatically so you don’t have to waste your own time chasing them up.
Happy tenant - happy landlord
I think you’ll agree. Tenants love renting directly through the owner because they know messages get through to you when the toilet is leaking :)
However the problem I keep hearing is, a lot of them are concerned about paying the rent directly to the landlord because 9 times out of 10 the rent is not recorded and receipted properly.
Allowing your tenant to pay rent through Cubbi will give them a lot of confidence and consequently help you attract better quality tenants and yet you still get the rent paid straight into your bank account. Win - Win.
This is free for your tenants however if they want to pay the rent from a credit card they will be charged a small credit card fee of 2.75%. This will be made clear to your tenant.
The law states you must provide one free way to pay rent. As it’s free for your tenant you have completed your legal obligations by using Cubbi Payments.
Apart from getting the rent paid on time, one of the biggest benefits of Cubbi Payments is the time you save by not having to record the rent yourself and chase up your tenants. It’s all done on autopilot.
Cubbi Payments is free if you are on a paid plan (Time Saver or Pro Plan) starting from $19 per month for you first property then $9 per month for every subsequent property after that.
You’ll also enjoy the other benefits of the TimeSaver plan like ongoing real estate support, relist on realestate.com.au free. View our fees
Get started anytime
Regardless if your tenant is already in the property and paying rent or you’ve never used or heard of Cubbi before you can start now.
Just log in (or Join Cubbi), go into your property then click on ‘Payments’ then follow the prompts.
We’re also more than happy to walk you through the process. Give us a call on 1300 654 600 and talk to one of us here in Melbourne who can help you get started.