Rent hiccups happen. A PAD gets rejected, an e-Transfer bounces, a cheque comes back NSF. Here’s a short, human playbook to fix it fast without drama.
Using PendoPay? Failed PADs are flagged automatically, timelines are tracked, and tenants can repay online.
What Just Happened and Why Does it Matter?
Failed rent payments usually fall into three buckets:
- NSF/Insufficient funds (cheque or PAD): The bank rejects the item.
- Technical failure (expired card on a third-party service, closed account, typo): The payment never clears.
- Reversal/dispute (PAD revoked or disputed): Under Payments Canada rules, consumers can generally dispute unauthorized PADs within 90 days; you’ll see a reversal.
Why this matters: your next steps (fees you can claim, which notice to serve, and how fast) depend on what failed, your lease wording, and your province’s rules.
Five Steps from “Uh-Oh” to “Resolved”
1. Capture the facts
Write down: date/time, payment method, bank code or note, and any bank fee you paid. Save a screenshot or PDF. This is your paper trail.
2. Reach out ASAP (same day)
Use a friendly, firm message that invites resolution. Keep it short:
Subject: Quick fix for this month’s rent
Hi [Name], your [PAD/cheque] didn’t clear on [date]. Balance is $[amount] (+ bank NSF/admin fee if applicable).
Please repay by [date/time] via [accepted method]. If that’s tight, reply and we’ll sort a plan.
If unpaid by the deadline, the next step is a formal notice under provincial rules.
Thanks!
– [You]
3. Apply fees only if you’re allowed
- Ontario: You can add your actual bank charge + up to $20 admin for an NSF rent cheque, if your paperwork is in order.
- BC: Common practice is your bank NSF charge + up to $25 returned-cheque fee if your tenancy agreement allows it.
- Everywhere: If the lease is silent or the amount is unclear, keep it simple: collect rent and documented bank costs you’re clearly allowed to recover.
(Tip: Add a plain-language fee clause to your lease for the future.)
4. Give a clear repayment path
Make it simple: retry PAD on a set date, or accept certified funds / bank draft / one-time e-Transfer. Set a specific deadline (48–72 hours works for most).
5. If it’s still unpaid, serve the right form accurately
- BC: RTB-30 (10-Day Notice for Unpaid Rent/Utilities). Tenant has 5 days to pay or dispute.
- ON: N4 (Notice to End Tenancy for Non-Payment). If unpaid by the termination date, file L1.
- AB: 14-day notice under the RTA.
Follow your province’s service rules and keep proof of service.
Prevention: Make Repeat Failures Rare
Use PAD (properly). When tenants sign a Payor’s PAD Agreement (Rule H1), you can schedule automatic debits on due day. Tenants keep 90-day protection against unauthorized debits, so ensure your authorization is clear and stored.
Practical settings that help:
- Send Rent Reminders: and send a reminder around the 28th for the next month’s collections.
- Due-date buffers: If rent is due on the 1st, schedule the PAD for the 1st business day of the month with an auto-retry on the 6th business day,
- Backup method: Allow a one-time e-Transfer if a PAD fails, then re-enable PAD for the next month. (Interac’s business guide explains why many landlords are moving off cheques.)
- Clear lease wording: Spell out accepted methods, fee amounts (if any), timelines, and what happens after two failed payments.
In PendoPay: upload the PAD authorization, set your due day + retry window, and turn on reminders once then let it run.
One-page checklist
- Record failure details + save proof
- Send same-day message with a clear deadline
- Add only permitted fees (check lease + province)
- Offer one easy repayment method
- If unpaid, serve your official notice for your province
- Log outcome; enable PAD + reminders to prevent repeats
FAQs
Can I charge the NSF fee automatically?
Only if your PAD agreement & lease clearly allow variable amounts for fees. Otherwise, collect it with the next payment.
Tenant cancelled the PAD, now what?
They can. Get a new method (e.g., certified funds), update your records, and keep the revocation note on file.
Late fee on top of NSF?
Depends on province + lease. When unsure, stick to documented bank costs and follow your province’s guidance.
