Does your 5 day grace period start on the first, and fee applied on the 6th, or start on the 2nd, and late fee applied on 7th? seems like it would be the latter, but I have been applying it on the 6th, not sure.
It is whatever you want it to be as it is a grace period not the serving of a legal notice.
1st Day is part of the grace period. So, for all my leases, the grace period ends on 5th, at 11:59 P.M. Here is a fun fact.. In Virginia you don't need to give a grace period of any single day. Most landlords (assuming they know the laws) do give it just to be a decent person. Check the state statues to see what the requirements are where the subject property is located.
Specific to the lease and your local laws. You should discuss this sort of thing with your landlord/tenant attorney to be sure you understand the exact laws in your area. I think its a very worth while investment to spend $200 to have an attorney review your lease and advise you about fine points like this.
Originally posted by @Chad C. :
@Chinmay J. Some states require a grace period, but I see my state does not, I also see that I can not take late fees out of rent, and I can not charge late fees for previous late fees, or unpaid previous balances, both of which I have been doing.
@Dennis M. I like that Idea
That kind of $hit can land you in hot water. I think you should consult a good attorney and get it sorted out. Show him all you have been doing, and if there is any refund that you owe the tenant, you might want go ahead and cut them a check. Might want to do it ASAP.
Send your pay or quit notice on the day following when rent is due and apply late fee on the 6th or when ever you please. The late fee simply covers you inconvieniance factor and cost of chasing down tennats that have not paid. Many landlords will often excuse th efee since they are too embaresed to bother collecting it.
Talk to an attorney to ensure you're doing it right. You can buy an hour of attorney time for a $200 so make a list of questions, put them in writing, and schedule a sit-down with the attorney to get your answers.
Some states mandate a grace period. My state mandates a 3-day grace.
Rent due: on or before the 1st
Grace period: 2nd, 3rd, 4th
Late Fee: 5th
3-day notice: 10th
When I worked in PM (Washington State), lease read that rent was due on the first and considered late after the 5th. They would be charged $10 per day retroactive from the first. So if they went past the 5th, they had a $50 late fee.
I would consult an attorney, as others have said and make sure you are covering your bases.