late fees: When Do Tenants Incur a Late Fee? - 01/31/10 03:49 PM
Our rental agreement calls for rent to be due in advance on the first of each month.  If the rent is not received by the 3rd, a 6% late fee is incurred. 
If the 3rd falls on a Saturday, Sunday, or holiday, the rent may be received on the next business day with no late fee. 
For example, if the 3rd falls on a Saturday, the resident would have until the end of the day on the 5th (Monday) to pay.  Tuesday the late fee would be assessed.
So rents may not be collected until the 5th or even the 6th … (6 comments)

late fees: How Much Should The Late Fee Be on Your Rental Agreement? - 05/21/08 05:56 PM

What is a proper and legal amount to charge a tenant when the rent is not paid as agreed?
Many landlords and property managers employ late fees to penalize their tenant for the added risk of a late payment.  Some charge a flat fee and some a percentage of the rent rate or a percentage of the late amount.  Some even charge a daily penalty. 
I am not an attorney but I do know that the late fee should compensate the landlord for the damage incurred by the late payment. 
One way to figure this "damage" is to mirror the … (18 comments)

late fees: When is the Rent Due and When is the Rent Late? - 05/20/08 06:04 PM

When starting a tenancy a landlord has to figure out when rent is due and when it is late.  It makes sense to have all rents due on the first of each month no matter what day the tenant took possession and no matter when the lease ends.  This is industry standard.
So, the rent is then late on the second.  But most landlords employ a grace period before a late fee is charged to the tenant's account.  Many landlords allow a five day grace period.  The problem with this is that weekends and holidays cannot be counted as the last … (2 comments)

late fees: Who keeps late fees? - 03/15/08 04:19 PM
Property management companies around the country have different policies on who keeps late fees paid by the tenant.  Late fees are charged to tenants when they pay their rent late.  Who keeps the collected late fees is a contractual matter between the owner and their property manager.  Most management companies have a standard policy in their contract on this subject.
Some property management companies place collected late fees into the owners account and keep nothing. 
Some companies add the total late fees into the amount of total collections and keep a percentage of the late fees at the same rate they charge the owner … (14 comments)