What Landlords Need to Know About Automated Rent Payments

Transitioning to automated rent collection? This comprehensive guide walks landlords through the benefits and considerations of adopting autopay

Wei Huang/Shutterstock

By Dave Spooner

Key Takeaways

• include an autopay clause in your lease agreements
• don’t require tenants to use autopay (or electronic payments)
• be aware of fair housing regulations
• be sure you can reject automated payments
• learn about NACHA rules and regulations
• watch out for cases of non-sufficient funds

As a first-time real estate investor or new property manager, you are responsible for choosing which rent collection method(s) you'll offer your tenants. Automatic rent collection is increasingly popular among landlords and tenants alike, but it often comes with questions and concerns from both parties.

If you’re thinking of offering automatic payments to your tenants, there are a few things you need to know first. In this article, we'll review the benefits of autopay for rent collection as well as six key points to know before getting started.