Late fee

[Taylor McClung]

HI BP,

I was thinking through a hypothetical late fee situation and wanted to get your input. Our lease agreement says that we charge a late fee if rent is past due. A tenant paid past that date and our late fee is applied. HOWEVER, if they write a check after rent is already past due and that check that bounces, do you think they should be assessed a second late fee in addition to a bounced check fee? 

Thanks for your input!

Taylor

[Rob Gribben]

For me, anything received after the 5th of the month is considered late, and a 5% fee is assessed.  So, they would have been charged the 5% late fee plus the fee for the bounced check.  My lease is setup similar to Kyle J's, once you a bounce a check, I reserve the right to change the payment form to ensure it doesn't happen again.