In New South Wales, lessors are required to offer one reasonable fee-free way to pay the rent.
But the definition of reasonable is elastic: in some cases the free option offered by real estate agents is much less practical, such as payments by cheque or cash.
In Victoria, laws introduced in March require agents to provide at least one free way of paying rent, as well as an electronic funds transfer option.
The previous regime – which mirrored NSW – led Melbourne resident Orlando Skeete to deploy drastic measures to avoid using third-party services. In 2018 Skeete had been paying rent by direct debit for about a year when a new agency took over and told him he would need to begin paying via Rental Rewards.
Skeete and his partner read the contract and saw some of the same issues raised by Pape: a $5 membership fee, a $2 transaction fee plus 1.1% charge with credit or debit card payments, a $10 cancellation fee when the tenant ended the contract and a $15 dishonour fee. Some cards attracted a $10 transaction fee for payments of more than $500.
Unimpressed, Skeete asked to keep paying by direct debit card, but was told he could only do so if he signed up to Rental Rewards.
Eventually Skeete and his partner, a lawyer, read the Competition and Consumer Act and told the agent that what they were doing “might be illegal and constitute third line forcing” – a practice that requires renters to use a scheme with no alternative.
“To be honest it wasn’t about the money, it’s the fact that I already don’t really like rental agents to begin with, and it was just the principle, like, screw these guys,” he says.
The agent told him he could pay by cash. So for the next two months, Skeete hopped on his bike, withdrew $3,000 in cash from his bank, and rode about an hour across the city to drop the rent off.
“When I got to the agent, they were clearly not set up to take cash payments so they tried to get me to sign up to Rental Rewards again,” he says.
Eventually they agreed to accept the money, but only after insisting he pay in exact change, something he had predicted.