Direct debit for rent: how it works and your alternatives
What it is
The landlord (creditor) instructs the bank to collect the agreed amount from the tenant’s (debtor’s) account on a set date, under a mandate signed by the tenant. In the SEPA area the tenant can reverse a collection within 8 weeks, so trust still matters.
How a private landlord can do it
Private individuals usually cannot originate direct debits directly with their bank. The usual routes are a payments platform (such as Stripe or GoCardless) acting as intermediary, or asking the tenant to set up a standing order, which is not a direct debit but works similarly.
Cost compared with cards
A SEPA direct debit on a gateway costs cents (Stripe charges around €0.35 per collection), while a card costs a percentage (around 1.5% + €0.25). On €900 rent that is roughly €0.35 against €14. That is why direct debit is the goal for rent.
What you can do today with iSign
Collect by card link with automatic reminders from the calendar (iSign Payments) and sign the mandate or authorisation electronically with the tenant. SEPA direct debit with a mandate signed in iSign is in development.
€4.99/month and 1% per payment: if you don’t collect, you don’t pay. Includes unlimited due dates, unlimited sends and your brand.
Frequently asked questions
Can the tenant cancel the direct debit?
Yes, they can revoke the mandate or reverse a collection within the legal period. That is why the mandate should sit with the signed agreement and every collection should have a receipt.
Can I make direct debit compulsory?
It can be agreed as the payment method, but the tenant must always have a reasonable way to pay; in practice it is offered as the convenient option.
From contract to payment, without chasing anyone
Create the due date, add your client’s email and we request the payment. Once paid, the instalment is marked automatically and you both get the receipt.
Start with iSign Payments →