Autopay moves money on a schedule; it does not confirm that the money arrived, that it was the right amount, or that it covered the right month. Reconciliation is the monthly act of matching each scheduled payment to a settled bank entry and to a ledger row. The Texas stakes are the same as for any payment: the late-fee clock in Property Code §92.019 runs from the original due date, and a notice to pay rent or vacate under §24.005 must state an amount the ledger supports. A reversed autopay discovered three weeks late is a notice the landlord cannot yet send.
The monthly routine
- On the due date: list every tenant on autopay with the expected amount.
- Two business days later: match each to a settled bank entry — not a “pending” one — and post the ledger row with the settlement date.
- Exceptions: an amount that differs (rent changed, fee added), a payment that failed, a payment from an unknown payer. Handle each in writing the same day.
- Reversals: post a reversal row on the date the bank notified you; apply the returned-payment fee the lease allows; require certified funds for the balance if the lease says so.
- Holidays: a payment initiated on the due date but settled after a bank holiday — the lease decides whether initiation or settlement counts; say which in the tenant’s reminder.
When rent changes
An autopay set at the old rent pays the old rent; the difference is arrears the day after the due date. Sixty days before a renewal at a new figure, tell the tenant in writing to update the instruction, and check on the first due date that the new amount arrived. A tenant who paid the old figure in good faith has still underpaid; how you treat the first month is a policy decision — write it down and apply it to everyone.
Records
Export the portal’s transaction history monthly and file it with the bank statement and the ledger; the three should agree to the cent. For a cash tenant on the same roll, §92.011’s receipt and record-book duties still apply — autopay does not change them.
Frequently asked questions
Is an autopay that fails still late rent?
Yes. Rent is due on the due date; a failed or reversed payment leaves the rent unpaid, and the late fee may apply two full days after the due date (Property Code §92.019).
Should the ledger use the initiation date or the settlement date?
Whichever the lease defines as “received”; post that date and keep the portal record showing the other.
What if the tenant’s autopay keeps paying the old rent after an increase?
The shortfall is arrears; give written notice of the new amount before the renewal, check the first payment, and apply your written policy on the first month consistently.
Sources
Rules change and the right answer can depend on the home, the city, the lease and the timing. These are the official pages this guide relies on; check them before signing, charging a fee, sending a notice or making a legal decision.
- Texas Property Code, Chapter 92 — Residential Tenancies ↗
- Texas Property Code, Chapter 24 — Forcible entry and detainer (§§24.005, 24.0051, 24.0053, 24.0061) ↗
- Texas State Law Library — Rent ↗
General information for U.S. landlords, with a Texas focus. This guide is not legal, tax or accounting advice. Consult a qualified professional for your situation. Written by the rentalfreelease.com Editorial Team; last reviewed September 19, 2026.