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Jackson Long
  • Investor
  • Memphis, TN
130
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379
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Late fee limits for Pierce or Washington?

Jackson Long
  • Investor
  • Memphis, TN
Posted Jul 13 2017, 20:48

A while back I looked into this and came away believing that there was no limit to what you could charge for a late fee as long as it was in the lease.

When my son was young and in day care they had these ABSURD late fees.  The intention was to make being late never a "choice" you would make.  Emergencies might happen, they might cut you a break, but you would never think "I'll just pop into the grocery store and get there 15 minutes late" because that 15 minutes would've cost 1meellion dollars.

So I approached my lease the same way.  I charge 30 dollars plus 30 dollars for every day after the third.  Side note: I've never had a tenant tell me they need to pay late and then still charge them.  I am a softee.  I've only ever enforced this with habitual problem tenants.  Anyway, it is in the main lease- the tenant initial the page then sign the lease.  It is also in the "rules addendum" that I created to call out the things that I find very important that a lot of people miss or forget.  I go through this item by item with the tenant and make them initial each one and then sign the page.  It has all the stuff like... don't flush hygiene products down the toilet, don't daisy chain extension cords, etc...  Anyway, the breakdown of the late fee structure AND the reason for it is included.

Okay so...  I've had this tenant pay late every month since I rented him the place.  Problem tenant all around- house is trashed.  He doesn't just pay late- he LIES about it too.  He managed to get two months late a bit ago because I was traveling.  I told him I would cut him a break on the first month worth of late fees since I didn't follow up.  So I waived those and gave him a 3 day.  He paid.  Fine.  Very next month (this month) he is late, I ask him about it, he lies about paying it next day, does not pay.  I go to our eviction guy and give him the info along with that the late fee is now 300.  Please serve the 3 day.

I get an email back saying that they served the three day, but only put 100 for a late fee.  WTF?  I question this.  I am told "the courts find that excessive".  I've requested they site this in some way and am supposed to get communication from the partner tomorrow.

Thoughts?

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