When you're managing rental properties, ensuring timely rent collection is vital for maintaining cash flow and tenant accountability. A popular method for achieving this is through the setup of recurring rent payments. This process allows for a more automated approach to rent collection, aiming to minimize late payments and administrative efforts. This article outlines how the recurring rent payment flow works within our system, giving you a thorough understanding of each step involved.
How the Recurring Rent Payment Process Works
After a tenant sets up recurring rent payments, our system facilitates the following sequence of events to ensure smooth and regular rent collection:
- Payment Scheduling
Recurring payments are scheduled to occur three days prior to the due date of the rent invoice, assuming the invoice has been created and approved. - Handling Rent Paid in Arrears
If the rent invoice is generated and approved with payment in arrears (i.e., after the rent due date), there is still a three-day lead time before the payment attempt is made. - Reminders for Leases/Tenants
On the day the payment is scheduled, tenants receive a reminder email that also offers them the option to cancel their recurring payment setup if desired. - Payment Attempts
Payments are attempted on the due date of the rent invoice. The system takes different actions depending on the outcome:-
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- If successful: The rent invoice is marked as paid, and its status updates to 'processing' within the Payments Hub.
- If unsuccessful: The invoice remains unpaid, and the tenant receives an email prompting manual payment. However, the recurring payment setup persists and will apply to subsequent invoices.
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- Invoice Approval Requirement
A recurring payment will not be scheduled unless there is a current, approved rent invoice in the system. - Post-Payment Steps
Once payment is successfully completed, the flow continues according to the selected payment method and associated payout schedule.
By understanding each step in the recurring rent payment process, you can ensure that your rent collection is as efficient and trouble-free as possible. Establishing this automated system not only aids in better financial management but also enhances tenant satisfaction by providing a convenient and reliable payment method.