Updated over 4 years ago on . Most recent reply
Partial payment and late fees calculations
I have a consistent situation and would like I some best advices. My tenant pays late (7 days -10 days late) but also pays the late fees. The issue is in few instances, the tenant rent plus late fees but keeps a small amount of $100-150 pending every time and pays off in next month cycle.
My late fee clause in lease states
- first day $75
- every other day $25/day
So if the tenant has $100-150, pending, do I still keep charging $25/day late fees as technically it’s still late as full payment is not received? If I go this route, tenant will have late fees way over the actual amount owned. So for tenants pending amount. If $150, the person may end up with $300-400 in late charge?
How to deal with this? I want to trend carefully as not to loose the tenant as except this, so far the person has been good tenant. I have a renewal in few months so do not want to anger the tenant.
Any suggestions on how to best deal with partial payments?