Blog / Landlords | 10 Mins Read

What’s The Best Way To Collect Rent As a Landlord in Peterborough?

Name: What’s The Best Way To Collect Rent As a Landlord in Peterborough?
Brand: Progressive Lets
Rating: 4.9 (499 reviews)

By Wayne Beecham | Created on 2nd March 2026

One of the biggest headaches for landlords is worrying about whether the rent on a property will be paid on time, or even at all.

While it’s difficult to protect yourself entirely from rent arrears, there are things you can put in place from the start to minimise problems later on. One of these is thinking about the best way to collect your rent for your individual circumstances and to make your preferred method part of your tenancy agreement.

We specialise in supporting landlords in Peterborough, Northamptonshire, Lincolnshire and Cambridgeshire, so if you own property in Rushden, Wisbech, Corby or Boston (to name a few), then read on for information on some of the main landlord rent collection methods in the UK – and the pros and cons of each.

Before You Start Collecting Rent

As part of your responsibility as a landlord, you need to lay out in your tenancy agreement when and how the rent will be paid each month. The document will be signed by you and your tenant and will be the basis for settling any disputes over the rent further down the line.

As an added word of caution, you must supply your tenant with certain documents before the tenancy begins – including copies of the energy performance certificate and the gas safety certificate for the property and the government’s How to Rent guide. You must also place the deposit in a government-backed scheme. You can find out more about your legal duties as a landlord on the government website. If you fail to take the necessary steps, you will find it more difficult to get your tenant to leave the property if you need them to.

When Does The Rent Need To Be Paid?

Most landlords require the rent to be paid in advance at the start of the month. So, your tenant would pay January’s rent on the 1st of January. However, you need to make this clear in your tenancy agreement. If you don’t, the default position is for the rent to be paid in arrears at the end of the month.

What Are The Best Options For Collecting Rent From Tenants?

These are the most common payment processes for landlords to collect rent from tenants:

1. Collecting Rent By Standing Order

The most common and easiest way for tenants to pay rent is by standing order. Your tenant should set this up with their bank at the start of the tenancy to ensure the recurring payment is paid from their bank account on the due date. It’s not foolproof – if they don’t have the cash in their bank accounts, the standing order may not be paid, however, it is more reliable than other payment methods. There are no costs to you, and it requires minimal landlord input.

Pros	Cons
Automated payments – Rent is sent automatically on the set date.	Tenant controls the payment – They can cancel or amend it without landlord approval.
Low transaction costs – Usually no bank fees.	No trigger if payment missed – Landlord must monitor manually if payment fails.
Less admin – No need to chase manual payments each month (if payment goes through).	Limited reporting features – Basic bank records only.
Simple process for tenants – Easy to set up through their bank.	No integrated accounting – Requires manual accounts reconciliation.
Good for long-term tenancies – Consistent payment method.	Harder to manage rent increases – Landlord cannot change amount when rent increases are agreed.

2. Collecting Rent By Direct Debit

Many people confuse standing orders with direct debits, but the two methods are not the same, although they both automate payments. The direct debit must be set up by a mandate signed by your tenant. It differs from standing order in that the receiving organisation can change the amount of money collected each month.

This is why a direct debit works well for bills which vary depending on usage. Standing orders, on the other hand, are for a set amount each month. As a mandate is required, direct debits are more difficult to set up, so you may need to use an agency to do it for you, which would lead to additional costs.

Pros	Cons
Collection is automatically done on a fixed date	Setting up can be more complex than a standing order
Landlord/agent controls the collection amount	Sometimes incurs setup and transaction fees
Reduces risk of missed or late payments	Requires tenant authorisation and mandate
Can sometimes automatically include late fees	Subject to Direct Debit guarantee rules
Integrated reporting and reconciliation	Payments can still fail due to insufficient funds
Can be integrated with automated arrears tracking and reminders	Tenants may prefer to remain in control of payment setup

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3. Collecting Rent In Cash Or By Cheque

Neither of these methods is ideal, or very common in 21st century Britain. Cash requires you to meet the tenant in person to collect the rent. Cheques need to be cashed at a bank or posted, as well as taking a few days to clear. Both methods leave less of a paper trail, making it more difficult to record and monitor payments. If your tenant is paying rent in this way, it’s worth wondering why.

Payment Method	Pros	Cons
Cash	No bank processing delay	No automatic paper trail unless a receipt is issued
Cash	No bank fees	Harder to resolve payment disputes
Cash	Useful for tenants without bank accounts	May create compliance or tax record concerns if not documented properly

Payment Method	Pros	Cons
Cheque	Creates a paper trail	Can bounce due to insufficient funds
Cheque	Easier bookkeeping and tax reporting compared to cash	Clearing time delay before funds are available
Cheque	Can be deposited remotely using mobile banking	Possible bank fees for returned cheques
Cheque	Safer than carrying large amounts of cash	Requires tenant to have a bank account

4. Collecting Rent Online Or Through An App

New technology has made online rent collection much more efficient. With the touch of a button, your tenants can complete their online rent payments through smartphone banking apps or by using services such as PayPal. If you’re confident using technology, you may wish to pay rent online, it can often be quicker and will make life simpler, though some services will attract fees.

There is a wide range of apps and online tools available for landlords to use for rent collection, including free and paid solutions such as:

Landlord Vision – This software provides lots of different features to manage rental properties, including rent collection, receipt scanning and document management. It includes an integrated calendar with deadlines and automatic reminders and warnings, certificate expiry tracking and tracking for right to rent status and document storage. You can set up multiple properties to manage using Landlord Vision.
Goodlord – This digital platform is another useful option for landlords looking for an easy way to collect rent payments. You can also use Goodlord to create tenancy agreements signed off by legal experts, send and sign inventories and tenancy agreements online, chase references and identify the best landlord insurance policies. The app provides a real time dashboard to easily track payments.
Landlord Studio – The Landlord Studio offers a range of tools to help landlords collect rent. This includes rent collection, accounting functions and maintenance reporting. The platform also supports landlords in being Making Tax Digital ready. There is a feature for allowing tenants to raise maintenance requests that can be tracked and reminders for certificate renewals.
Rentora – Landlords can collect rent payments from tenants using the app and it supports other property management tasks including listing the property, reviewing application, creating inventories and managing maintenance tasks by sharing requests live with contractors.
GoCardless – GoCardless does not have additional property management features like many of the other rent collection apps but it has integrations with Xero and QuickBooks to support accounting and allows you to pay per transaction rather than signing up for a monthly subscription.

Rent Collection Services

Another option is to outsource your rent collection. If you use a lettings agent to manage your property rental, they may offer this as an add-on. Alternatively, you could go direct to a bespoke rent collection service. You’ll need to pay a fee for both, but there are several reasons people choose this option, such as:

You don’t need to deal with chasing payments.
Some rent collection companies guarantee the rent payment.
Less time spent handling financial activities.
There are also disadvantages to choosing to use rent collection services:
You pay fees for the service, so you make less profits from your rental yield.
Guaranteed rent payments will cost more.

Services vary greatly, so you need to check exactly what is included.

How Do Rent Collection Services Work?

Landlords who don’t want the hassle of collecting rent can instruct a rent collections company to do it instead. The company provides the tenants with the bank details to pay their rent into. If payments are made on time, the company transfers the rent into the landlord’s account on the same day.

If the rent payment is late, the rent collection company sends reminders until the payment is made in full.

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What To Do If Your Tenant Doesn’t Pay On Time?

Whichever payment methods you use, it’s hard to totally protect yourself from a tenant who defaults on their payments for whatever reason. Make sure that you have a system for tracking your rental payments so that you are aware of any problems at an early stage. Keep lines of communication open so you can discuss any issues with your tenant and consider your options.

It’s also important to record any correspondence with your tenant so you have an account of your communication with them which could be required for court proceedings. If you need to take things further, find out the process for evicting a tenant on the government website.

Rent Collection Methods FAQs

Can a landlord legally require tenants to pay rent by a specific method in the UK?

Yes, a landlord can request for tenants to pay using a specified payment method and include it in the tenancy agreement. However, landlords are not allowed to force tenants to pay using third party services that incur unfair fees.

What happens if a tenant cancels their standing order without informing the landlord?

If a tenant cancels the standing order without informing the landlord, this is usually a breach of contract. The landlord should contact the tenant to check whether there has been a mistake and to try and arrange for the payment to be made.
If the payment is not made, the landlord can start formal legal proceedings by serving a Section 8 eviction notice if the tenant has two month’s arrears (which will change to three months under the Renters’ Rights Act).

Are landlords required to provide receipts when tenants pay rent by cash?

Yes, landlords must provide receipts for any rent payments paid in cash.

Do rent collection apps report payment history to credit reference agencies?

Most rent collection apps will provide tenants with the option to link to credit reports so that on-time rent payments can help improve their credit score.

Can a landlord change the rent payment date during an existing tenancy agreement?

No, a landlord cannot change the date of rent payment during an existing tenancy agreement with the tenant’s consent.
If the tenant agrees to changing the payment date, a new contract or written agreement should be signed by both parties.

If you’re a new landlord in the Peterborough area, we can help you find the method of rent collection that’s right for you, as well as assisting with many of the other duties that come with renting out property. Give us a call to discuss our services today.

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Wayne Beecham

Wayne is East Midland’s answer to property management. His hard work and high standards of service have gained him a fierce reputation within the regional lettings market. He knows what it takes to own and manage a profitable portfolio himself, because he is not only a successful investor and landlord, but co-founder and “hands on” managing director of Progressive Lets.

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