Letter template for late rent with late fee waived as a courtesy

Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes

Does anyone have a template for a letter they are willing to share that memorializes that the monthly rent was paid late, but that the late fees will be waived this time as a one-time courtesy for a good tenant?

Thanks in advance!

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
No need for a form letter. Just type something up quick and get them to sign it.
"On October 5th, 2022, Landlord agreed to a one-time waiver if the late fee for October rent. Tenant agrees that any future late fees will not be waived "
I recommend you get in the habit of never forgiving late fees. If you waived it this month because their car broke down or they flew to the Bahamas and forgot, how will you justify charging the fee when a family member dies or their child is hospitalized after being run over by a car?
People agree to pay rent by a certain date and to pay a penalty if they are late. Stick to it.
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Richard F.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
4y
Aloha,

Also, you now will need to give ALL of your good tenants, one free pass. Fair Housing.
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Wesley W.
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Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
4y
Quote from @Nathan Gesner:

No need for a form letter. Just type something up quick and get them to sign it.
"On October 5th, 2022, Landlord agreed to a one-time waiver if the late fee for October rent. Tenant agrees that any future late fees will not be waived "
I recommend you get in the habit of never forgiving late fees. If you waived it this month because their car broke down or they flew to the Bahamas and forgot, how will you justify charging the fee when a family member dies or their child is hospitalized after being run over by a car?
People agree to pay rent by a certain date and to pay a penalty if they are late. Stick to it.

Yes, absolutely. Back story is grace period is until 5pm on the 5th. Tenant deposited rent on the morning of the 6th, before I could post rent demand notice. (Note: I typically post rent demand before dawn on the 6th, but I had committed to a per-diem job for that day.)

On tenants who have an impeccable payment history and are otherwise cooperative and adhere to the lease I may give a once-per-lifetime "pass" as a courtesy if they square up within a few days (i.e. before the rent demand letter gets posted). This was one of those times. And in my opinion @Richard F. everyone is not "entitled" to this pass. This is a business decision, and "late rent payers" are not a protected class under Fair Housing. There's too much enabling/pandering going around these days under the guise of "fairness." I rent to adults.

For posterity, here is the letter I came up with:

I’m writing this letter is to inform you that we received your rent payment late this month. As your lease states, rent is due on or before the 1st of the month, and there is a 5% late fee for any payment made after 5:00pm on the 5th. Your rent payment for October was not made until after this grace period had expired.

As a courtesy, we are willing to waive the late fee this single time. I’m hopeful that this was just an oversight and that moving forward you will be more mindful of the due date and continue to pay your rent on time. Please contact me if you have any questions about this letter or if in the future you anticipate any issues with a timely payment. Your cooperation and attention to this matter is appreciated.
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