" LATE FEES " ??????

13 Replies

We charge a $25 late fee if not paid by the 5th at 5 pm and the $3 per day on top of the $25. We have one family that pays at the end of each month instead of the beginning and pay almost $100 extra each month. We have a security deposit and last 2 months of rent for them, which is why we let this go!

We charge $50 after the 7th day of the month and then another $50 on the 25th day of the month. I believe most people tack on late fees around the 5th day of the month.

My lease states $50 on day 5 and $10 per day thereafter. I have one tenant who pays late almost every month. They pay on an online portal and voluntarily add $50-$100 monthly. Different judges in different areas will have their own interpretation of what reasonable is if you ever end up before them. I have had judges cap my late fees at around $100 on a monthly rent of ~$1,000. For a tenant who is rarely late I also cap the fee and sometimes reduce it to only a $20-$30 bucks. I have waived it on occasion but I only do that rarely. My experience is that my tenants appreciate when I reduce the fee but when I have waived it completely they tend to expect that the next time. They somehow no longer see it as something they are liable for if they didn't actually pay anything.

We just have a 10% penalty in our lease. Based on the other replies, I think I am going to change it to something like the $25 + $3 per day.

This is why these forums are good. I haven't really thought about it too much.  I often waive fees if the tenant calls or writes me to let me know it will be a day or two late or something.

I also have a conversation when signing the lease about this. I explain that the bank does not allow us to be late with our mortgage payments, and if the tenant is late, it causes problems for everyone. I also have a friend who rents who has no late penalty, and instead tells tenants, "There will be no late rent paid." He then explains that if rent is late, he needs to find another tenant. He must explain it well because he has about 15 units without anyone paying late. Let me add that he is a fanatic about maintenance, etc, and his units are very desirable.

Originally posted by @Daniel F. :

How do you collect your late fee? Do they pay next month with rent? 

 Late fee should be collected with the current rent.

Originally posted by @Account Closed :

Hey bp,ers

  My question is what is the going fair rate for late rent fee ?  

 Hello Shawn,

This is a very interesting question. I guess I am wondering what else is going on in this situation? Is this for a place you are currently renting? Do you have a "grace period" in your lease?

Some companies will charge $5.00 a day every day it is late. Others will charge $25 or $50 once after the "grace period" has ended. Sometimes there will be a second late fee if they still haven't paid after a certain amount of days.

Please let me know if you have any questions, I'd be happy to help.