Rentec Direct introduces a new feature that automatically applies NSF fees for failed ACH payments. This enhancement to your software saves landlords and property managers valuable time and reduces administrative burdens.
At Rentec Direct, we understand that automation is key to making your daily tasks run smoothly. A commonly frustrating task for landlords and property managers is handling failed payments due to nonsufficient funds (NSF). Not only does it disrupt your budget, but it also consumes valuable time for you and your team.
Good news! Your Rentec Direct Development Team has heard your requests and successfully created a new management solution for NSF fees, streamlining your process and reducing administrative burdens. This innovative feature automatically applies NSF fees for failed ACH payments, saving you time and ensuring more consistent accounting.
What Happens When an ACH Transaction Fails?
When an ACH payment fails, it often results in an NSF fee. With Rentec Direct’s new automation, you can set the NSF fee in accordance with your leases or rental agreements, and the software will automatically apply it when an online ACH transaction fails. This eliminates the need for your team to spend time tracking failed payments and manually entering charges. Plus, charges posted to the tenant ledger can automatically trigger a notice to your tenants using the automated notification feature.
How to Set Up Automated NSF Fees in Rentec Direct
Following these simple steps, you can indicate your fee for failed online payments, and Rentec Direct software will automatically apply the NSF fee to failed online ACH payments.
In your Rentec Direct account:
Click on Settings.
Under Financial, click on Online Payments.
Under ACH Settings, specify the fee amount for rejected or returned ACH payments. Leave this blank or set it to 0.00 if you do not want automated fees.
Select the Product that ACH-rejection fees will be assigned to (To ensure accurate accounting, create a new product (Settings, Products & Services) and an income category to track non-sufficient fund fees.)
Important Considerations for NSF Fees
Charging NSF fees is a way for housing providers to recover costs associated with failed payments, but state and local laws vary significantly by location. It’s always safe to assume an NSF fee must be included in a rental or lease agreement. While some states have no limit as long as the charge is “reasonable,” some states apply a cap, and others have more restrictive rules.
Be sure to include your NSF policy and fee as it pertains to physical and electronic funds transfers (EFT) in your lease or rental agreement to avoid legal complications.
Be sure your NSF policy complies with state and local laws.
Consider including a cash-only policy implementation for tenants with repeated failed payments. (Available with PayNearMe and Rentec Direct integration)
Here’s a quick look at how some state-specific regulations vary:
California: Landlords can charge up to $25 for the first bounced check and $35 for each additional one (Cal. Civ. Code § 1719).
Colorado: If the tenant’s rent check bounces, the landlord may charge a fee up to $20, as long as the fee was described in the rental agreement (CRS § 13-21-109(1)(b)).
Florida: Landlords may collect bank fees actually incurred by the payee, plus a service charge based on the amount of the check, capped between $25-$40, and either $40 or 5% of the check amount for checks greater than $300, as well as the possibility of triple damages (rarely pursued in rentals) (Fla. Stat. § 68.065(2)).
Oregon: If the tenant’s rent check bounces, the landlord may charge a $35 fee (ORS § 30.701(5)).
Pennsylvania: If the tenant’s rent check bounces, the landlord may charge a returned check fee of $50 unless they are charged more by their financial institution, in which case the landlord may charge that amount (18 PS § 4105e).
Texas: NSF/Bounced Check Fee Maximum: $30 (Tex. BC Code § 3.506b).
By following these simple steps and understanding the legal landscape, you can streamline your fee collection process and ensure that NSF fees are automatically applied, saving you time and effort.
Suggest a Feature
Our goal is always to make your tasks as a landlord, property manager, or investor simpler, quicker, and more efficient. One way we accomplish this is by reviewing valuable feedback and input from our awesome clients. If there is anything you would like to see added to enhance your Rentec Direct experience, please send your ideas and suggestions to [email protected] and help us shape the future of Rentec Direct.
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About Rentec Direct
Rentec Direct delivers industry-leading property management software and tenant screening solutions to real estate professionals. Key features include online rent payments, a mobile app and tenant portal, vacancy listing syndication, and accounting tools. Founded in 2007, Rentec Direct is the third-largest software provider in its sector and is consistently the highest-rated by investors, landlords, and property managers. Recognized on the Inc. 5000 list of fastest-growing private companies for nine consecutive years, Rentec Direct was also named Real Estate Company of the Year in the 2025 American Business Awards and listed among the U.S. Chamber of Commerce’s Top 100 Small Businesses. rentecdirect.com
