Understanding the Recurring Rent Payment Flow

When managing rental properties, timely rent collection is vital for maintaining cash flow and tenant accountability. Recurring rent payments provide an automated approach to rent collection, minimizing late payments and reducing administrative effort. This article explains how the recurring rent payment flow works within Re-Leased Pay.

How Recurring Rent Payments Work

After a tenant sets up recurring rent payments, the system facilitates the following sequence:

1. Invoice Generation and Approval

A recurring payment will only be scheduled when there is a current, approved rent invoice in the system. Invoices must be generated and approved before the payment process begins.

Note: Recurring payments only apply to rent invoices created and approved after the recurring setup date. Existing or overdue invoices must be paid manually.

2. Payment Reminder (3 Days Before Due Date)

Tenants receive an email reminder three days before the invoice due date. This email:

• Confirms the upcoming payment amount
• Notifies tenants of any rent changes
• Provides the option to cancel the recurring payment setup if needed

3. Payment Attempt (On Due Date)

Payments are attempted on the due date of the rent invoice. The outcome determines the next steps:

If the payment is successful:

• The rent invoice is marked as 'paid', and its status updates to 'processing' within the Payments Hub.
  • When the invoice is marked as 'paid' depends on your Invoice Payment Recognition setting (see below)
• The tenant receives a payment confirmation email immediately

If the payment is unsuccessful:

• The invoice remains unpaid
• The tenant receives an email prompting manual payment
• The recurring payment setup remains active for future invoices

4. Handling Rent Paid in Arrears

If a rent invoice is generated and approved after the rent due date there is a three-day lead time before the payment attempt is made.

5. Payout Processing

Once payment is successful, funds are processed according to your payout schedule. Depending on the payment method used and the region you operate in, this may take between 2-7 business days.

Invoice Payment Recognition and Recurring Payments

Your Invoice Payment Recognition setting controls when invoices are marked as 'paid' in Re-Leased after a tenant makes a payment. This setting is found in Re-Leased Pay > Re-Leased Pay Settings > Invoice Payment Recognition.

Available Options

Important Considerations for Recurring Payments

If you use the 'At time of funds received' or 'Manual' recognition options with recurring payments, be aware that:

• Invoices will remain marked as 'unpaid' in Re-Leased until funds are received or manually reconciled
• Invoices may appear in arrears reports during the settlement period (2-7 business days)
• Automated arrears communications may be triggered while awaiting settlement
• The tenant experience is unchanged - they still receive immediate payment confirmation when paying

Recommendation: If using these settings with recurring payments, review your arrears communication workflows to account for the settlement delay. You may need to adjust automated reminder timing or add checks for payments currently in processing.

For more information, see Configuring Invoice Payment Recognition Settings

Frequently Asked Questions

Will changing the Invoice Payment Recognition setting put my tenants into arrears?

If you switch to 'At time of funds received' or 'Manual', invoices will show as unpaid for 2-7 business days while funds settle. This may cause invoices to appear in arrears reports even though payment has been collected. Consider adjusting your arrears communication workflows to account for this delay.

Does the Invoice Payment Recognition setting affect recurring payment timing?

No. Recurring payments are always attempted on the invoice due date regardless of your recognition setting. The setting only controls when the invoice is marked as 'paid' - not when payment is collected from the tenant.

What happens if a recurring payment fails?

The tenant receives an email notification prompting them to pay manually. The invoice remains unpaid and the recurring setup continues for future invoices. You can track failed payments in the Payments Hub.

Can tenants cancel their recurring payment setup?

Yes. Tenants can cancel their recurring payment at any time through their Invoice Overview screen or by using the link in their payment reminder email.