Late fee start date?

[Beth Matherne]

Hi everyone!

How do you all handle your late fees?

What day do you consider late? How much are you charging?

We enforce a late fee after the 5th, at $15.00 a day as of now. I’m curious how this works for everyone else.

Our first 2 properties we’ve had for 2 years we had 1 late fee. We purchased a 10 unit apartment complex 2 months this is the second month in a row we have 2 late tenants.

[Michael Craig]

@Beth Matherne

The late fee amount must be specified in the lease otherwise you cannot charge one - I charge a $25 dollar fee with an additional $10 for each day rent is late . Also, I believe each state has a different grace period for when/if you can charge a late fee so be sure to check local laws. New York has no limit on how much you can charge, it just needs to be agreed to on the lease.

I give the tenants a 3 day grace period and if the tenant doesn't pay in that time frame I have someone serve them a 3 day notice to quit. This notice starts the eviction process and sends a clear message to the tenant. On this notice I include an itemized amount of what they owe (rent, late fees, etc). I have always gotten paid the next day through this method.