Tenant pays rent late

[Tiffany Perry]

Hello, 

I have a tenant who pays rent late every single month. Typically between 11th and 15th of the month no matter how much the rent is. The late fee is currently 5% of the monthly rent. I wanted to increase the late fee to a higher amount to encourage the tentant to pay the rent timely. I didn't see that there was a statutory cap on the late fee. Are you aware of any cases that limit the amount that I can charge for late fee? Thanks. 

[Bill B.]

As mentioned, you’re essentially collecting over market rent for waiting what, a week? Two? If you don’t like it simply increase the rent $100 or $200/months and tell them it’s because of their late payments. Either they’ll 1) Fix their behavior, and you can lower the rent back down, 2) Not change and you’ll collect the higher 
late fee you want” 3) Move out and let you find a better tenant as you don’t seem to be willing to just non-renew them. 

The alternative is to hire a PM and let them deal with it. Good luck.