The concept of late fees is simple. Everybody understands that if rent (or any other bill for that matter) is not paid within a certain number of days beyond the due date, there will be an additional charge tacked on. Should be pretty easy, right? Wrong.
If you are a landlord struggling with late-paying tenants, then you know this story all too well. Everybody understands the concept of late fees at the time of lease signing, but when it comes to putting it into practice, all of a sudden, things seem to get complicated.
Every property manager has his or her own system for collecting on rent that is far past due, which typically involves bending over backward simply to get the funds rightfully owed to you. And if you are doing business the old-fashioned way, that is with physical checks or cash, that means payment is always going to be initiated by the tenant. As the perpetrator, they seem to somehow always conveniently forget that added late fee when settling their debt. Rather, the check will come in at the standard rental amount as it always does and by the time it reaches the landlord, it feels too late to go back and demand the upcharge.
Landlords are consistently put in these uncomfortable situations when chasing after funds owed to them. But no more. Finally, thanks to Innago, there is a better way.
The Innago Solution
Innago has done the legwork, working with countless landlords and property managers to design a better late fee system. The system is entirely flexible and able to adjust to fit any way you’d like to run your business. From setting fees and rates to determining collection dates, everything is customizable. It’s also designed with real life in mind. Meaning – we know that for landlords every day, tenant, and property can present a new challenge, a one-off situation you’ve never seen before. Except we have. And we have the tools to help you navigate it.
Why It Works
Landlords love our system because it essentially takes them, personally, out of the equation. The worst part about dealing with late fees is that property managers have to take on a role they didn’t necessarily sign up for. The uncomfortable role of debt collector. Without a system, you are solely responsible for recouping those funds, and also in the undesirable position of making a judgement call based on the tenant’s excuse for not making rent in a timely manner.
With Innago, all actions and transactions take place instantly and effortlessly. You could be sitting on your couch watching the latest series on Netflix while Innago reaches out and notifies your tenants, ensuring they make good on their charge. And if they wish to dispute? Well, there’s a process for that too.
By removing the human element of the transaction, the relationship between landlord is actually strengthened. By being upfront and unbiased, the landlord can remain absolved from all judgement while the system does exactly what it has promised and is designed to do. This level of transparency goes a long way in building trust between landlord and tenant.
Late fees are a powerful tool. But there must be a method to the madness. Collecting on rent past due and the associated charges can be a slippery slope for most landlords not using a digital platform. Additionally, enforcing fees inconsistently can send a strong message, and not exactly the one you are looking to send. Work with the experts at Innago and let us do the math. Straightforward system + consistently enforced late fees = happy landlords and tenants!