Gov’t considering making rent payments by bank transfer mandatory

The government is considering making the payment of rent fees by bank transfer mandatory. The policy proposal was floated by the Secretary for Administration and Justice, André Cheong on Tuesday at the Legislative Assembly, during a debate over the existing problems between tenants and landlords.

According to Cheong, making rents mandatorily paid by bank transfer would help to ensure proof of payment in cases where there are conflicts regarding unpaid or late payment of rent fees as well as deposits collected, among other issues.

The debate was set in motion by the questions of lawmaker Mak Soi Kun, who has long been calling on the government to find a solution to what he calls “scamming tenants,” as well as solving water leaks, a common issue in apartment buildings in Macau.

Mak wanted to know whether the new government will present measures aiming to expedite judicial cases involving rental contracts. On previous occasions, he has claimed that landlords sometimes wait years to regain possession over their units after cases of non-compliance with rental contracts.

Cheong then admitted that the government may revise the legislation on that topic to minimize conflicts between the two parties. The secretary suggested the creation of a “provision that clearly states that rents must be paid through bank accounts within the defined deadline,” adding that the government will first study the feasibility of such a provision, as well as listening to the opinions of the public.

The measure would also tackle a suspected large number of rental contracts not registered or reported to the financial authorities. It would seek to prevent landlords from being able to earn an income without reporting it and paying tax on it.

In the past, the government enforced a similar measure concerning the payment of wages to domestic workers, making it mandatory that each worker’s wages be deposited in a bank account in the name of that worker as a guarantee that workers receive the amounts they are entitled to.