Iowa late fees property management
Hello everyone,
Quick question about late fees with Iowa law. The law states that if the rent is less than $700/month, then late fees can not exceed $12/day up to $60/month. Here is the exact wording:
“For rental agreements in which the rent does not exceed seven hundred dollars per month, a rental agreement shall not provide for a late fee that exceeds twelve dollars per day or a total amount of sixty dollars per month.”
I’m trying to figure out if this applies only after the grace period, and if this means that I can not charge a late fee of $30 initially after the (5 day) grace period is up. Can I only charge $12 on day 6 that rent is late since I give a 5 day grace period, or does this start after the 1st when rent is due so that by day 5 I have full legal right to charge $30? Any insight on this would be greatly appreciated!