Late Fee Due When?

Question

Rent is due on the first day of the month and the late fee is assessed on the fifth day of the month.  If the fifth day of the month falls on the weekend when the office is closed, do you automatically assess the late fee on the fifth or do you wait and give them an opportunity to pay their rent on the next business day and do not charge them a late fee?

Account Closed · Answer

Seems to me if they put in the mail slot on the weekend and it is waiting there I would call it good.  Someone delivering a check on Monday would be assessed a late fee.

I would definitely check the landlord tenant laws for your state though.

Andy B. · Answer

I wouldn't charge a late fee.  Just think of getting it challenged - you cannot prove it was late, so how do you defend yourself in court (should it get there)?

Dorraine S. · Answer

Aly,

Oh, it would be a dream come true if our tenants could pay electronically.  We currently require money orders only, and everyone comes to the office to pay.  You can picture that revolving door, can't you?  We're a little "behind the times" with some things.  Allowing our tenants to pay electronically is at the top of my To Do list.   :lol:

Aly W. · Answer

You might consider having the tenants pay by depositing the rent directly into a business account. I have all my tenants do that, so I can see my account online and know exactly when they paid the rent. There are also online rent payment sites where the tenant can auto-debit their account right into the property manager's. This might be difficult to get done now, with 100 tenants and a new policy.

I assess the late fees after the 3rd day the rent is due, because my bank (TD Bank) is open 7 days a week and most holidays, so they have no excuse for not paying by the 3rd. I call, email, and/or text the tenant reminding them to include the late fee with their rent. The only snail mail they get is a registered letter stating that the Pay or Quit notice will be posted and an eviction proceeding will follow.

Dorraine S. · Answer

Kevin,

We mail our late notices via snail mail.

Kevin N. · Answer

Hi all,
I wonder how you guys send the late rent notice to tenants. Is it required to be first class mail, certified mail ? Or is slipping the notice under the door, or even sending email good enough ? I wonder if this is something stipulated by state law ?
thanks,
Kevin

Dorraine S. · Answer

I'm the new property manager for this real estate company.  We have just under 100 tenants, and 90 percent of them are routinely late.  They've been "baby-sat" for so long that they are now accustomed to someone in our office "cutting them slack," whether it's allowing them to pay two months behind each month or forgiving their late fees.  I'm trying to get them back on track, such as paying their rent on time and paying their late fees.  Hopefully, this will discourage the tenant from being slack in the future.

If I had only a few tenants, and if they were not often late, I think that I would most certainly let it slide.

I looked in our Georgia Landlord-Tenant Handbook, and I could not find the issue of the due date falling on the weekend.  I guess I should call the Georgia Real Estate Commission to see what they think.  I'm of the mindset, though, that if it's due on the 1st and late on the 5th, and if the 5th falls on a weekend, then they need to pay it prior to the weekend, such is the same with utility bills, credit card bills, cable bill, etc.

I thank you all for your input.  I'm new to PM, and I appreciate your advice.

Nate Worcester · Answer

I agree with Charles. If it's there on Monday morning when you get in, then I would probably let it slide.

Dorraine S. · Answer

Thank you all.

We do have a mail slot for them to drop it in, but I would have no way of knowing whether they dropped it in the mail slot on the 5th, which was Saturday, or whether they dropped it in there at 6 a.m. Monday morning.

Cheryl C. · Answer

You said that the office is closed.  Do you have a mail slot that they can drop it through?  I agree that the 5th is the 5th, but find a problem with the tenant being unable to deliver it to you if they drove to the office.  I had a tenant put a check under my door today.

Late Fee Due When?

Most Popular Reply