What does everyone charge for late fees?
Hey guys,
I'm curious to learn about what other landlords and property managers charge for late fees? After how many days do you charge the first fee, and how much? Do you charge a daily fee after that, and if so, how much?
Thanks,
Luke Jackson
First and foremost, check with your state laws as to what is in your power. We use a 3 day grace period with a 6% late fee charge. However, because of the way state of California is, I don't think we can actually collect until the 5th. I believe they consider the second to be day one of the late period and day 5 as the first collectible day. Definitely take a peak at your state laws to be sure you're in compliance.
Check your local statutes! Every place is different - go strictly by the book or it'll come back & bite you.
I add $10 per day as soon as allowed, BTW. It's not a huge amount, but it can add up.
Another gotcha is state law may allow any fee, but jurisdictionally you may have issues. For example, locally judges will allow up to 15% but if you put a daily fee, they tend consider that punitive and throw it out, even if you never reach 15%. I have mine set at 10% just to be safe.
Personally, my company does $25 with a 3 day grace period and a $10 daily late fee for the following days. Check with your local laws first, though!
In Ohio, there have been conflicting case law decisions on daily late fees. (Ohio law deems up to 20% "reasonable")
We do a three day grace and 10% late fee. I'll usually waive the first late fee if advance notice is given.
I charge 40 dollars a week after a three day grace period.
$130 or 10% whichever is greater, we start eviction on the 5th day
10% after the fifth.
$25 late fee for one bedroom apartments. $75 late fee for SFR.
Rent is due by 6PM on the 1st or business day prior if the 1st is a holiday. Late fees are $100-150 (depends on the rental) due on the 2nd. That works out to about 10%.
Keep in mind that late fees need to be high enough (max allowed IMHO) to deter a tenant from being late in the first place. Just food for thought.