Late Fee Pricing
I have a rental property in Mississippi an I charge $50 dollars late fee with an additional $10 dollars late fee every day after the 5th of each month. My question is what is a good price to charge for late fee an what is a good price to charge after the 5th of each month.
I just changed the late fee starting on the 3rd instead of the 4th. $20 and $5 added for each additional day. Let's the tenant know you need the rent now and not later.
As of yet there is no statute that governs the maximum amount of late fees that can be charged. Best practice is to go with something that is reasonable and will hold up in court. I've notice that a $50 late fee is the norm for the area. This does not mean something hire will not be held up by a judge.
DISCLAIMER: The above is for basic educational purposes. For more information, seek out a local attorney.
