How to Set Up a Rent Payment Plan
A tenant who's fallen behind but wants to catch up is often worth working with. A written payment plan gets you paid faster and more cheaply than an eviction, if it's set up properly.
Why a payment plan beats eviction
An eviction typically costs a landlord court fees, legal fees, weeks or months of lost rent, turnover and re-leasing costs. Many back-rent judgments are never fully collected. A tenant who is paying something every month and staying in the unit is usually the better financial outcome, as long as the plan is realistic and in writing.
When a payment plan makes sense
- The tenant has a reasonable track record before this
- The cause is temporary (job change, medical bill, reduced hours)
- They can afford current rent going forward plus something toward the balance
- They're communicating with you
If the tenant can't cover current rent at all, a payment plan only delays the problem. Point them toward local rental assistance programs, which can sometimes pay the arrears directly.
What to include in the agreement
- 1The total amount owed, broken down by month (and any late fees, if you're including them)
- 2The repayment schedule: amounts and exact dates
- 3That current rent must still be paid in full and on time
- 4What happens if a payment is missed
- 5That the original lease stays in effect
- 6Signatures and dates from both parties
RENT PAYMENT PLAN AGREEMENT Landlord: [Name] Tenant: [Name] Property: [Address] The tenant owes $[total] in unpaid rent for [months]. The tenant agrees to pay this balance in the following installments, in addition to the regular monthly rent of $[rent]: - $[amount] on or before [date] - $[amount] on or before [date] - $[amount] on or before [date] The regular monthly rent remains due in full on the [due day] of each month. If any installment or regular rent payment is not received within [X] days of its due date, the full remaining balance becomes due, and the landlord may pursue the remedies available under the lease and the law. All other terms of the lease remain in effect. Landlord signature / date: ______________ Tenant signature / date: ______________
Sample for illustration. Some states regulate repayment agreements or what happens after a missed installment; check your local rules.
Making the plan stick
- Keep installments small and frequent. Weekly or biweekly amounts aligned with payday are easier than one large monthly catch-up.
- Send reminders for every installment, not just rent. Most missed installments are forgotten, not refused.
- Record each payment in your ledger and send a receipt showing the remaining balance.
- Act quickly on a missed payment. A friendly check-in the next day, then the agreed consequence if it isn't fixed.
Frequently asked questions
Should I waive late fees in a payment plan?+
Often worth it. Waiving fees conditional on the plan being completed gives the tenant a strong incentive to stick to it and makes the total realistic.
Can I still evict if the tenant breaks the payment plan?+
Generally yes, but you'll usually need to start the formal process again with a proper notice. Make sure your agreement says the lease and your legal rights remain in effect.
Related resources
Let Ping send the reminders for you
Ping emails your tenants before rent is due, on the due date, and follows up automatically if it's late. Free while we're in early access.