Online Rent Collection, 5 days pending. LATE Fee?

Question

Should I charge a late fee even though the online bank draft tool says they sent rent two days prior to due date?   Most tools give a 5-7 business day window.  Last month funds didn't hit till the 7th and rent is due on the 1st.  Thanks.

Joe Martella · Answer

I look like it as a post mark date.  As long as they put it in the bank by the due date it isn’t the tenant’s fault/problem.

Malcomb Stapel · Answer

In their mind, they paid you before the due date. It's somewhat out of their hands if the bank is taking time to process the transaction. If it's an issue where you need the money sooner, you might consider bumping the due date by a few more days. Pretty much the same as when a transaction goes through my PM. They receive the payment a few days before it gets deposited to my account.

Sylvia B. · Answer

What does your lease say? Is rent considered paid when the payment is made, or when you receive it? If the lease doesn't specify, then you will have to accept that it is when the payment is made.

My lease specifies that electronic payments are on time if made by the 1st, but checks sent by mail must be in my PO box by the 1st to be on time. I also include a warning in the payment section of the lease. If the tenant drops the payment in their mailbox it will take a minimum of 3 days (5-7 over weekends/holidays) to reach my PO box (in the same town!). Many tenants, including some of mine, go into the post office and hand the envelope to the clerk, asking them to put it in the po box. I asked our postmaster about this because I didn't want them getting annoyed at us, but she said it's no problem, lots of renters do that.

Jasmine Delves · Answer

I agree with the above comments. As far as your tenants are aware, they have paid their rent on time. They are not responsible for the bank's processing times!

Online Rent Collection, 5 days pending. LATE Fee?

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