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Lease Agreement and PAD Form

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LEASE AGREEMENT AND PRE-AUTHORIZED DEBIT (PAD) FORM

Parties

Landlord Name:

Tenant Name:

Property Identification

Term

Lease Commencement Date:    Lease Expiration Date:

Possession Date (if different):

Financial Terms

Pre-Authorized Debit (PAD) Authorization

Tenant hereby authorizes Landlord to initiate pre-authorized debits from the account below for the payment of rent, late charges, NSF charges and other amounts owing under this Lease. This authorization remains in effect until revoked in writing in accordance with the notice provision set out below.

PAD Effective Date:    Frequency:

Tenant acknowledges that dishonoured PADs may be subject to the NSF fee specified above and that the Landlord may re-submit a PAD for collections. Tenant authorizes Landlord to adjust the amount for changes to rent or other sums due, provided Tenant receives prior written notice of such adjustment in accordance with this Agreement.

Use, Maintenance & Utilities

Tenant shall use the premises as a residential dwelling only and shall comply with all laws and regulations. Landlord is responsible for major structural repairs unless caused by Tenant's negligence. Tenant is responsible for routine maintenance and interior cleanliness.

Pets Permitted:

Alterations & Insurance

Tenant shall not make structural or material alterations without prior written consent of Landlord. Tenant is strongly encouraged to maintain renter's insurance covering Tenant's personal property and liability; Landlord's insurance does not cover Tenant property.

Disclosures

Lead-Based Paint (if applicable):

Known Mold or Water Damage:

Prior Material Damage or Repairs:

Default, Remedies & Termination

Failure by Tenant to pay rent when due, to comply with material obligations of this Lease, or any dishonoured PAD shall constitute default. Upon default Landlord may pursue all remedies available at law or in equity including termination, recovery of possession, and recovery of unpaid rent, costs and reasonable attorney's fees.

Termination by Tenant prior to Lease expiration requires written notice and payment of obligations as set out in this Agreement. Early termination charges may apply as specified herein or by written addendum.

Governing Law & Entire Agreement

This Lease shall be governed by and construed in accordance with the laws of the jurisdiction in which the Property is located. This document, including any attachments and written addenda signed by the parties, constitutes the entire agreement between the parties and supersedes all prior agreements and understandings.

Acknowledgment & Consent

By signing below, Tenant acknowledges receipt of a fully executed copy of this Lease and explicitly authorizes Landlord to debit the designated account according to the PAD terms set forth. Tenant confirms that the information provided in this Form is true and complete and that Tenant has authority to authorize debits from the designated account.

Landlord:

By:

Date:

Tenant:

By:

Date:

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What the Lease Agreement and PAD Form Do

A Lease Agreement and PAD Form combines a standard lease contract that sets occupancy, rent, deposits, and obligations with a pre-authorized debit (PAD) or payment authorization section that permits automatic rent collection from a tenant’s bank account. It documents the parties, premises, term, payment schedule, and payment authorization language needed to authorize ACH or recurring debit transactions while creating a single, signed record for enforcement and bookkeeping.

Why a Single Lease Plus PAD Improves Clarity and Compliance

Combining lease terms and payment authorization in one document centralizes consent, reduces disputes about payment authority, and supports an auditable record. When executed electronically under ESIGN and UETA standards, the combined form preserves enforceability and a reproducible record of signature events.

Why a Single Lease Plus PAD Improves Clarity and Compliance

Typical parties who prepare or sign this combined form

Use depends on portfolio size and preferred payment workflow; landlords with recurring collections benefit most from an integrated authorization.

  • Property managers and leasing agents handling multiple tenants and recurring rent collection.
  • Independent landlords who want documented payment authority and consistent billing.
  • Tenants or guarantors authorizing ACH debits and agreeing to lease terms in writing.

Core elements to include in a professional Lease Agreement and PAD Form

A robust combined form addresses both contract terms and explicit payment authorization language to minimize ambiguity and ensure operational readiness for automated collections.

Parties & Premises

Full legal names and a precise property description (unit number, street address) to identify contractual parties and the leased premises unambiguously.

Term & Rent

Start and end dates, renewal options, monthly rent amount, due date, grace period, late fee schedule, and method for calculating prorated rent.

Security Deposit & Fees

Deposit amount, permitted uses, interest handling if required by state law, and timelines for return at lease termination.

PAD / Payment Authorization

Clear ACH authorization language describing bank routing and account numbers, payment amount or cap, payment frequency, start date, revocation procedure, and bank contact instructions.

Defaults & Remedies

Events of default, cure periods, late fees, acceleration rights, and lease termination procedures to support enforcement and collections.

Signatures & Dates

Signature blocks for all tenants, guarantors, and landlord representatives, with printed names, titles (if applicable), and dated signature lines to confirm consent.

Required information to capture on the form

Full legal name: As on government ID
Mailing address: Street, city, state, ZIP
Bank routing number: 9-digit ABA routing
Bank account number: Tenant account number
Payment schedule: Amount and frequency
Contact phone/email: For questions and notices

Step-by-step: completing the Lease Agreement and PAD Form

Follow a consistent sequence so the lease and payment authorization are accurate, signed, and retained with supporting records.

  • 01
    Prepare: Populate property, parties, and payment terms.
  • 02
    Enter PAD data: Add routing/account numbers and specify frequency.
  • 03
    Review: Verify names, amounts, and authorization language.
  • 04
    Execute: Sign and distribute copies; enable payment activation.

Configuring an online workflow for the combined form

Set up a signing and payment routing flow that validates identity and captures an audit trail before activating PAD instructions.

Field Configuration
Authentication method Email + SMS code
Template settings Lock key fields after signing
Conditional fields Show PAD only if tenant opts in
Payment collection Enable ACH tokenization

Where to send and how to route the executed form

A clear routing plan ensures the landlord, tenant, and payment processor each receive their copy and the authorization is actionable.

  • To Tenant: Send signed copy for tenant records.
  • To Landlord: Retain master copy in lease file.
  • To Bank: Provide ACH token or authorization to processor.
  • For Accounting: Export transaction history to accounting system.

Digital distribution channels and technical needs

Ensure your chosen platform preserves timestamps, stores an immutable audit trail, and can export signed records for compliance and accounting.

  • File formats: PDF and DOCX supported
  • Integrations: CRM, accounting, cloud storage
  • Authentication: Email, SMS, or stronger

Common timing and notice expectations

Observe scheduled dates and statutory notice periods to avoid disputes and ensure lawful revocation of payment authorization.

Lease effective date:

Start of occupant rights and rent obligations

Monthly due date:

Specify day each month rent is due

PAD start date:

Date automatic debits may begin

Revocation notice:

Provide written notice per bank terms (commonly 30 days)

Security deposit return:

State-specific timing for returns after lease end

Frequent mistakes to avoid when preparing this combined form

  • Omitting precise PAD language that names the recipient and specifies frequency — this can lead to bank refusals or merchant disputes.
  • Entering mismatched names between lease and bank account — name discrepancies often cause returned payments or identity challenges.
  • Failing to record consent steps and audit data when electronically signing, which weakens proof of authorization in a dispute.
  • Not specifying a revocation procedure or cap on debit amounts, creating exposure to unintended or excessive withdrawals.

Key risks and potential consequences of errors

Returned payment: Bank fees and tenant dispute
Unauthorized debit: Reputational and refund exposure
Invalid authorization: Legal dispute over collections
Late fees challenged: Reduced enforceability
Recordkeeping gaps: Noncompliance in audits
Regulatory fines: State consumer protection penalties

Download, storage, and supporting documents to include

Preserve the signed package in accessible formats and bundle supporting materials to simplify audits and tenant inquiries.

File formats

Save executed records in PDF/A for long-term preservation and retain a copy of the native DOCX or editable file when feasible.

Supporting documents

Attach proof of identity, bank voided check or bank letter, government ID copy, and any guarantor agreements to the lease file.

Payment receipts

Provide a receipt or payment confirmation after the first PAD debit with transaction date, amount, and reference number for tenant records.

Export options

Export audit trail and CSV transaction logs for accounting reconciliation and dispute resolution.

Common eSignature vendors for Lease and PAD workflows

Comparing vendor starting prices and core features relevant to executing leases with payment authorization; signNow is listed first per vendor ordering rules.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial No No Yes, limited Yes, limited
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Real-world examples of combined lease and payment workflows

Two brief examples illustrate practical outcomes when lease and PAD are handled as a single signed record.

Martin Properties

A small landlord digitized leases to collect recurring rent online.

  • Reduced manual collections by centralizing PAD authorization.
  • Tim Martin says he can process and execute documents online with compliance and security, improving turnaround and tenant convenience.

BIS (Collections)

A collections-focused operator standardized authorization wording across portfolios.

  • Consistent PAD clauses enabled automated reconciliation.
  • The company cited SOC 2 certification and clear audit trails as key to enforcement and audit readiness.

Who typically has authority to sign

Property Manager

Property managers authorized by owners to enter leases and set up PAD instructions should have written authority or power-of-attorney language from the property owner to bind the owner to payment terms and collection methods.

Tenant / Guarantor

Tenants and any guarantors must sign and date the authorization; guarantors should provide explicit consent to PAD debits and be named clearly to avoid disputes over who authorized withdrawals.

Key processing milestones from draft to active collections

Follow a clear milestone sequence so authorization, activation, and record retention occur in the right order.

01

Draft Complete

Lease and PAD finalized and reviewed by both parties.

02

Execution

All signatures captured and dated.

03

Payment Activation

Processor tokenizes ACH info and schedules first debit.

04

Ongoing Reconciliation

Monthly statements and dispute handling procedures run.

Frequently asked questions about Lease Agreements with PAD authorizations

Answers to common questions about enforceability, revocation, bank rejections, and electronic signature legality for combined lease and payment forms.


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