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⚠️ Payments & Financial

Collections
Workflow

Manage overdue accounts with a structured escalation pipeline — from friendly reminders to demand letters to third-party referral.

Collections Escalation Process

A structured approach to recovering overdue rent.

1

Stage 1: Friendly Reminder

Day 1–3 late. Automated email and push notification reminding the tenant of the overdue balance. Tone is friendly and informational.

2

Stage 2: Late Fee Applied

After grace period. Late fee is auto-applied to the account. Tenant receives notification of the additional charge and updated total balance.

3

Stage 3: Formal Late Notice

Day 5–7 late. A formal pay-or-quit notice is generated with state-specific language and cure period. Delivered via email, in-app, and optionally PDF.

4

Stage 4: Demand Letter

Day 14+ late. Generate a demand letter outlining the total amount owed, all fees, payment deadline, and consequences of continued non-payment.

5

Stage 5: Payment Plan

Optional. If the tenant communicates hardship, create a structured payment plan with installments. Track plan compliance automatically.

6

Stage 6: Third-Party Referral

Day 30+ late. If all attempts fail, refer the account to a collections agency or begin legal proceedings. Export all documentation for the case.

Collections Pipeline

Track all overdue accounts by escalation stage.

myrentalspot.com/payments/collections
Collections Pipeline
3 Active Cases$4,250 Outstanding
Stage 1 — Reminder
Kevin Park — 3C
$1,600 · 3 days late
Reminder sent Feb 4
Stage 3 — Formal Notice
Lisa Thompson — 4D
$1,450 · 14 days late
Pay or Quit sent Feb 8
Stage 4 — Demand Letter
Mark Davis — 6B
$1,200 · 22 days late
Demand letter sent Feb 10
Collections Pipeline — track escalation stage, days late, and actions taken

Automated Escalation

Set rules to automatically advance accounts through stages.

🤖

What You Can Automate

  • Friendly reminders — Auto-send at 1, 3, and 5 days late.
  • Late fee application — Auto-apply after grace period expires.
  • Stage advancement — Automatically move accounts to next stage based on days late.
  • Notification escalation — Increase notification frequency as the account ages.

What Requires Manual Action

  • Formal legal notices — Pay-or-quit notices require your review before sending.
  • Payment plans — Custom arrangements need your approval.
  • Third-party referral — Collections agency handoff is always manual.
  • Eviction proceedings — Legal actions require your explicit initiation.

Common Questions

About the collections workflow.

Yes. Configure when each stage triggers in Settings → Collections. Default timelines are based on common practices but fully adjustable.
No. The collections workflow is a pre-legal process to recover unpaid rent. If you need to pursue eviction, consult an attorney. The documentation generated helps support your case.
Yes. From a tenant's collections record, click "Create Payment Plan." Set installment amounts, dates, and track compliance. The system alerts you if a plan payment is missed.
Yes. Every reminder, notice, demand letter, and message is timestamped and stored. You can export the full communication history for legal or collections purposes.

Recover Overdue Rent Faster

Structured escalation, automated reminders, and full documentation — all free.

myrentalspot.com