Investor · Mahopac, NY · Member since 2015 · 55 posts · 13 votes
Hello everyone,
Just thinking about a hypothetical situation where the tenant pays the rent after the due date but refuses to pay the additional late fee. How would you go about getting this money from them, or would you just deduct it from their security deposit? (let's assume that it was only a few hunderd dollars and this is the first time the tenant missed the due date)
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
11y
And check your local laws. Some laws state that the order of payments is towards any fees FIRST and then the remainder towards rent. So if that's the case for your area, they have indeed paid the late fee, but are short on rent.
Residential Real Estate Broker · Chicago Suburbs, IL · Member since 2013 · 1k+ posts · 594 votes
11y
I would take your emotions out of it and explain that she has a choice; she either pays the late fee and all is good, or she doesn't pay it, assuming your lease is written this way, she will be considered behind on rent for the month, late charges will due for the next month, and so on, and at some point you will file an eviction for unpaid rent, and once eviction paperwork is filed with the county, other landlords will see that when they screen and most likely deny her rental application. And when the next landlord calls you and asks if she pays on time, you will tell the truth. Let her know the choice is hers, its all outlined in the lease she signed. That way it's not you against her, she has 2 choices and she has to pick one.
I would also add that you need to be fair to all tenants, and enforce the same rules to all tenants, you cannot selectively enforce with some and not with others, that isn't fair.
If your lease isn't written that way where any payments go to late fees before rent, it may be a good time to find a landlord-tenant attorney in your area to ask how you can enforce the late fee given how your lease is written.
Regarding writing a lease to have the rent amount be less if paid early or on time, you cannot offer a discount if paid on-time or early in all areas, that is state, county, or city specific since some areas don't allow it, and the discount amount may be limited to the late charge amount.