How do I set up autopay for rent?

Autopay, sometimes called auto-draft or recurring payment, pulls a set rent amount from the tenant's bank account on a fixed day each month. The tenant authorizes it once.

After that, rent posts on schedule without anyone chasing it. You keep control of the amount and the timing, and either side can pause or change the arrangement before the next run.

For a landlord, the payoff is fewer late payments and less time spent sending reminders each month.

• Link the account: the tenant connects a checking account for ACH.
• Confirm the amount: rent, plus any recurring charges like a pet fee or parking.
• Pick the draft date: usually the first, or a day that lines up with payday.
• Authorize: the tenant approves the recurring draft, which creates a clear record of consent.

Once the tenant finishes, the first scheduled payment runs on the next due date. You can watch that first run post before relying on it for the whole lease.

A few habits keep autopay reliable over the length of a lease:

• Match the draft date to the lease due date, then let your late-fee rules handle any exceptions.
• Update the recurring amount before a rent change or renewal takes effect, not after.
• Ask tenants to keep enough balance for the draft, since a returned payment can trigger fees.
• Confirm the tenant's authorization is on file, since that record protects you if a draft is ever disputed.

Autopay is only as accurate as the amount behind it. At renewal, or after a rent adjustment, update the recurring figure so the new amount drafts automatically.

Give the tenant written notice of the change and let the updated authorization reflect it. Rules on notice for rent changes vary by state, so check the state law guides.

If a tenant moves to a new bank, have them re-authorize the draft before the old account closes to avoid a gap.