What's your late policy and fees, what day do late fees kick in?
I'm curous how others structure their Rent clause in regards to Due Date and Late Fees? How many days grace period are you allowing? How much are your late fees? Are they effective? My rent clause is pretty tough on late payments, but I think it has been effective.
My rent clause allows 2 days grace period. If rent is not paid on the 1st or 2nd, on the 3rd day there is a late fee of $100, and on the 4th day begins a $5/day additional late fee. I know this is a tough late clause, but I didn't want the stress of wondering if tenants were going to pay the rent. I think it is effective because my tenants have only paid rent late twice, and even then it was paid on the 4th or 5th of the month. The first time I completely waived the penalty because I didn't want to charge it. The very next month the tenant paid late again, so I charged the late fee. I didn't like charging the late fee, I debated not charging it, but was concerned that if I didn't enforce the late fee clause the tenant might get in the habit of paying late.
What are your late fees, and how effective has it been?
Thank you