Direct Debit is the simplest way to get rent paid on time: your tenant authorises it once and you no longer chase transfers each month. PAM handles this through GoCardless, a specialist Direct Debit provider, using your own GoCardless account.
How rent collection with GoCardless works
You connect your GoCardless account to PAM. Each tenant sets up a Direct Debit to that account in the PAM tenant app. On every rent due date PAM asks GoCardless to collect the rent, then shows you each payment's progress and records it in your rent ledger once it's collected.
The money never passes through PAM. It moves from your tenant's bank to your GoCardless account, and GoCardless pays it out to your bank account. GoCardless charges its transaction fees directly to your GoCardless account.
Before you start
- Your details in PAM. Check your name, email and company in Settings. PAM uses them to fill in GoCardless's forms for you.
- A tenancy with rent set. Each property needs an active tenancy with the rent amount and the day of the month it's due.
- Your tenant on the PAM app. Your tenant sets up their Direct Debit in the PAM tenant app (iPhone and Android), signed in to their tenancy.
Step 1: Connect your GoCardless account
- In the PAM portal, open Settings → GoCardless.
- Choose Create a GoCardless account if you're new to GoCardless, or I already have one — sign in.
- GoCardless opens with your name, email, company and country already filled in. Finish signing up or signing in, then approve PAM's access.
- You're returned to PAM, which shows Connected and the name of your GoCardless account.
GoCardless checks every new account before paying money out. PAM shows where your account is up to:
| Shown in PAM | What it means | What to do |
|---|---|---|
| Verified | GoCardless has verified your account. | Nothing. Rent is paid out to your bank. |
| In review | GoCardless is checking your details. | Tenants can set up Direct Debits now. Payouts start once the check is finished. |
| Action needed | GoCardless needs more information from you. | Click Finish verification in GoCardless and complete the steps there. |
Step 2: Your tenant sets up a Direct Debit
- In the PAM tenant app, your tenant opens Rent and taps Set up rent payments.
- They choose Direct Debit. GoCardless's secure payment page opens with their name and email filled in.
- They enter their bank details and confirm. Their bank usually confirms the Direct Debit within a few minutes.
In the portal, Rent & Payments → Active tenancies shows each tenant's Direct Debit as Pending while it's being set up and Active once it's ready. You also get a notification when it goes live. Tenants are protected by the Direct Debit Guarantee and can cancel at any time.
Paying this month by bank transfer? Tenants can also choose Bank transfer, which uses GoCardless Instant Bank Pay to send one month's rent straight from their banking app. For regular rent, Direct Debit is the better choice.
Step 3: PAM collects the rent
From each rent due date, PAM asks GoCardless to collect that month's rent from every tenant with an active Direct Debit. A month is never charged twice. Direct Debit takes about three working days to clear.
Follow every payment under Rent & Payments → Direct Debit collections:
| Status | What's happening |
|---|---|
| Scheduled | GoCardless will collect it on the date shown. |
| Submitted | The request has gone to the tenant's bank. |
| Collected | The tenant's bank has paid. PAM adds it to your rent ledger. |
| Paid out | GoCardless has paid it into your bank account. |
| Failed | The tenant's bank didn't pay. See below. |
Collected rent appears in your rent ledger and in your property income for Making Tax Digital, so there's nothing to type in.
If a payment fails
When a tenant's bank doesn't pay, for example because of insufficient funds, PAM tells you first, in Rent & Payments → Rent needing your decision and on WhatsApp if you've turned it on. Choose one:
- Retry in 5 days: PAM tries again in five working days.
- Retry as soon as possible: PAM tries again at the earliest date GoCardless allows, usually three working days.
- I'll handle it: PAM leaves it with you.
When you retry, PAM tells your tenant the new date. If GoCardless is already retrying a payment automatically, PAM just lets you know.
If a tenant's Direct Debit is cancelled
If a Direct Debit is cancelled, fails or expires, PAM tells you and rent stops being collected for that tenancy. Choose Send them a setup link, and PAM sends your tenant a secure link to set it up again. Or choose I'll handle it.
Refunding a tenant
First, turn on refunds in your GoCardless account. You only do this once, and you need to be the account admin:
- Sign in to your GoCardless dashboard.
- Go to Settings → Company settings and scroll to Refunds.
- Turn refunds on.
Then, in PAM:
- Open Rent & Payments and find the collected payment.
- Click Refund, enter the amount and an optional reason, then Review refund.
- Check the details and click Refund to confirm. Refunds can't be undone.
The payment shows refund pending until GoCardless sends the money, then refunded. PAM records the refund in your ledger so your rent and tax totals stay correct, and tells your tenant it's on its way. You can refund up to the amount collected, in up to five parts per payment.
Disconnecting GoCardless
To stop collecting rent through PAM, open Settings → GoCardless and click Disconnect. PAM stops creating rent payments. Direct Debits your tenants have already set up stay in your GoCardless account, and you can reconnect at any time.
Set it up once and rent arrives on time every month. When something needs your decision, PAM asks you.