Reasonable late fees to charge for paying rent late

Member since 2024 · 36 posts · 7 votes

Florida Statutes 83.808 (3) talks about charging reasonable late fees when rent payments are late. Reasonable means $20 or 20% of the monthly rent, whichever is greater per the statute.

- Is this 20% per month? Per year? So if my rent is $1200 a month, can I charge 20% x $1200 = $240 every month the rent is late, or max $240 for the year? I have it in the lease that rent is due on the 1st, I charge $75 per day late fee, starting in the 2nd day rent is late.

- How much do landlords usually charge that is "reasonable" for the court? And is it charged every month rent is late?

- Can a landlord go to jail for charging unreasonable fees? Or just get their eviction case dismissed?

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Elenis Camargo

Property Manager · Jacksonville, FL · Member since 2018 · 514 posts · 470 votes

Hi Jonathan! We manage in Jacksonville and South Florida. We like to keep it simple and instead of using a percentage, we do $100 on the 6th and $5 a day after that. It caps at $225. This way they have a significant reason to pay on time as they would get the $100 right off the bat and then increases slowly. We also post notices on the 6th and that's another $50. We don't do this to be mean or to make money, we do this to entice the tenants to pay on time. That's our #1 goal. In a perfect world, they would all pay on time and we would not many anything off posting fees or late fees. And no one will go to jail for late fees. Just make sure you're using a lease written by an attorney or work with a property manager to place your tenants for you and use their lease. Our lease has so much in it to protect owners and us. I hope this helps!

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Matthew Masoud
Investor · Orange County, CA · Member since 2014 · 363 posts · 408 votes
1y
Nobody is going to jail for charging high late fees.
I typically charge 10% of rent for late fees, and I give them until the 3rd.
I'm pretty sure in Florida, it's 20% of the late rent can be charged in late fees.
So $75/day is fine but it would have to max out at $240. You can't show up to court where their rent is $1,200 but you have $2,000 in late fees.
Plus, when/if you file for eviction, the attorney will help you process it properly.
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- Jonathan Blanco
  OP
  Member since 2024 · 36 posts · 7 votes
  1y
  Quote from @Matthew Masoud:
  
  Nobody is going to jail for charging high late fees.
  I typically charge 10% of rent for late fees, and I give them until the 3rd.
  I'm pretty sure in Florida, it's 20% of the late rent can be charged in late fees.
  So $75/day is fine but it would have to max out at $240. You can't show up to court where their rent is $1,200 but you have $2,000 in late fees.
  Plus, when/if you file for eviction, the attorney will help you process it properly.
  
  Thank you!
  0 Reply
Elenis Camargo
Property Manager · Jacksonville, FL · Member since 2018 · 514 posts · 470 votes
1y
Hi Jonathan! We manage in Jacksonville and South Florida. We like to keep it simple and instead of using a percentage, we do $100 on the 6th and $5 a day after that. It caps at $225. This way they have a significant reason to pay on time as they would get the $100 right off the bat and then increases slowly. We also post notices on the 6th and that's another $50. We don't do this to be mean or to make money, we do this to entice the tenants to pay on time. That's our #1 goal. In a perfect world, they would all pay on time and we would not many anything off posting fees or late fees. And no one will go to jail for late fees. Just make sure you're using a lease written by an attorney or work with a property manager to place your tenants for you and use their lease. Our lease has so much in it to protect owners and us. I hope this helps!
3 Reply
- Jonathan Blanco
  OP
  Member since 2024 · 36 posts · 7 votes
  1y
  Quote from @Elenis Camargo:
  
  Hi Jonathan! We manage in Jacksonville and South Florida. We like to keep it simple and instead of using a percentage, we do $100 on the 6th and $5 a day after that. It caps at $225. This way they have a significant reason to pay on time as they would get the $100 right off the bat and then increases slowly. We also post notices on the 6th and that's another $50. We don't do this to be mean or to make money, we do this to entice the tenants to pay on time. That's our #1 goal. In a perfect world, they would all pay on time and we would not many anything off posting fees or late fees. And no one will go to jail for late fees. Just make sure you're using a lease written by an attorney or work with a property manager to place your tenants for you and use their lease. Our lease has so much in it to protect owners and us. I hope this helps!
  
  Thank you!
  0 Reply
Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
1y
On the 6th of the month, we charge a 5% late fee.
After the 10th, we then charge a 10% per diem.
NOTE: judges often throw our per diem late fee out:(
Logical Property Management4.9453 Reviews
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
1y
Quote from @Jonathan Blanco:

Florida Statutes 83.808 (3) talks about charging reasonable late fees when rent payments are late. Reasonable means $20 or 20% of the monthly rent, whichever is greater per the statute.
- Is this 20% per month? Per year? So if my rent is $1200 a month, can I charge 20% x $1200 = $240 every month the rent is late, or max $240 for the year? I have it in the lease that rent is due on the 1st, I charge $75 per day late fee, starting in the 2nd day rent is late.
- How much do landlords usually charge that is "reasonable" for the court? And is it charged every month rent is late?
- Can a landlord go to jail for charging unreasonable fees? Or just get their eviction case dismissed?

No you will not go to jail if you are found to be charging what the court considers excessive late fees.
1 Reply
Adam BartomeoBusiness Member
Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
1y
We charge $50 after a 3-day grace period and $10 per day after that. Going to jail over charging late fees seems excessive...
[email protected]239-339-3969
Bartomeo Property Management4.7150 Reviews
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