AUTOMATION

How to Automate Rent Collection and Reduce Arrears

By Propflow Team · May 2026 · Updated August 2026 · 8 min read · ← Back to Blog

Rent arrears are one of the most time-consuming and stressful parts of running a letting agency. For every tenant who pays late, someone on your team is writing reminder emails, making calls, updating spreadsheets, and potentially chasing landlords who want answers.

The good news: the entire process — from pre-due reminders to overdue escalations — can be fully automated. Here's how to set it up.

4h
avg. time saved per month on rent chasing
30%
reduction in average days to payment
£0
extra cost for automated reminders in Propflow

Why most agencies still chase manually

Despite the availability of property management software with automation built in, many agencies still manage rent chasing via a combination of bank statement review, sticky notes, and email templates. The reasons are usually:

On the last point: well-written automated reminders are consistently better-received than a hurried phone call at 5pm. Tenants appreciate the advance notice, and many simply forget to pay — a friendly reminder the day before is a service, not a chase.

The ideal automated rent collection workflow

Here's the sequence that works best for most agencies:

Day −5: Pre-due reminder

Friendly email reminding the tenant their rent is due in 5 days. Include the amount, the due date, and a link to their payment portal. Open rate at this stage is high — tenants are expecting it.

Day −1: Final reminder

A brief nudge the day before. "Your rent of £X is due tomorrow." Short, clear, not alarming.

Day +1: Overdue notice

The rent didn't arrive. A polite but firm email noting the payment is now overdue. Ask them to pay or contact the agency if there's an issue.

Day +3: Second overdue

A follow-up. Slightly more urgent in tone. Mention that you may need to contact the landlord if payment isn't received.

Day +7: Escalation

At this point a human call is usually warranted. Your software should have flagged the payment as overdue and alerted your team to make direct contact.

Day +14+: Formal process

If unresolved, begin your formal arrears process. Document every communication — automated or manual — for any future legal proceedings.

How to set this up in Propflow

1

Set your rent due day

In Settings → Automation, set the day of the month rent is due. Propflow generates a payment record for each active tenancy automatically each month.

2

Configure reminder timing

Set how many days before the due date you want the pre-due reminder to send. The default is 3 days, but you can choose 1–14. Enable multi-stage reminders if you want both a 5-day and 1-day notice.

3

Enable automated overdue chasing

Turn on the overdue chase sequence. By default, emails go out at Day +1, +3, +7, +14, and +28 after the due date. You can customise which milestones trigger notifications and the email content.

4

Connect your email

Propflow sends reminders via Resend from your agency's domain (or a Propflow subdomain). Ensure your email is configured so messages land in inboxes, not spam.

5

Test with a sandbox payment

Mark a test payment as overdue in your dashboard and confirm the email fires correctly. Check the tenant-facing email looks professional and includes the correct property address and amount.

Pro tip: Enable the in-app notification so your team is alerted when a payment goes overdue — not just the tenant. This ensures a human follows up at Day +7 even if the tenant hasn't responded to automated emails.

What about Direct Debit?

Automated reminders dramatically reduce late payments, but the most reliable way to collect rent on time is Direct Debit. When tenants pay by DD, the bank pulls the money automatically — no action required on either side.

If you're not already using Direct Debit for most of your portfolio, it's worth the setup overhead. Most agencies using DD see arrears rates drop to under 2% of payments.

Propflow supports tracking payments regardless of method — Direct Debit, bank transfer, standing order, or card. The reminder system applies to all payment types, so even DD payments get a pre-due notice as a belt-and-braces approach.

Communicating with landlords

Landlords hate surprises. Even a brief "your tenant at 14 High Street is 3 days overdue — we're following up" email is far better than silence followed by a delayed remittance. Propflow's owner portal shows landlords their rent status in real time, which reduces the "is the rent in yet?" calls dramatically.

What about properties in Northern Ireland?

The rent collection process in Northern Ireland follows largely the same practical workflow, but the legal framework differs in important ways — particularly around notice periods for non-payment and the Private Tenancies Act 2022. If you manage properties across both jurisdictions, your arrears escalation process should account for these differences. See our guide to NI vs England landlord law →

Common mistakes agencies make with automated rent chasing

1. Sending reminders from a no-reply address

Automated emails sent from noreply@yourplatform.com feel impersonal and can't be replied to — which defeats the purpose of the overdue stage, where you want the tenant to get in touch. Use your agency's real email address so replies come to your inbox.

2. Not personalising the reminder

A reminder that says "Dear Tenant" with a generic property reference is far less effective than one that includes the tenant's name, the exact address, the amount due, and the due date. Modern platforms merge these fields automatically — there's no reason to send generic emails.

3. Turning off automation after one difficult tenant

Some agencies disable automated chasing after a tenant complains it was sent in error. The right response is to fix the exception (mark the payment as received, or pause reminders for that tenancy) rather than turn off the system for everyone. One edge case shouldn't cost you the time savings across 50 other tenancies.

4. Not logging manual communications

If your software logs automated emails but you're also making phone calls and sending WhatsApp messages outside the system, you have an incomplete communication record. In any dispute or legal proceeding, a gap in the documented timeline weakens your position. Log every contact — or use a platform that captures them all.

5. Waiting too long to escalate to legal

Automated chasing handles the communication side, but it shouldn't replace the human judgement call on when to start formal proceedings. The standard practice is to issue a Section 21 or Section 8 notice when arrears exceed two months — don't let automated reminders lull you into waiting longer than that threshold.

Measuring the impact: what to track

Once you've set up automated rent collection, track these metrics monthly:

Benchmark: Agencies that move from fully manual to automated rent chasing typically see arrears rates drop by 25–35% and save 3–6 hours of admin time per month per 50 properties managed.

Choosing the right platform for automated rent collection

Not all property management software includes automation — or includes it without an additional charge. When evaluating platforms, check:

See our full comparison of property management software for UK letting agents →

Automate your rent collection with Propflow

Set up automated reminders, overdue chasing, and arrears reporting in under 5 minutes. 14-day free trial, no credit card required.

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