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Late Fee -How much do you charge? - Landlord Forum thread 175880







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Late Fee -How much do you charge? by D-Packman (PA) on March 25, 2009 @12:36

                              
How much do you all charge for late fee?
I used to charge only $20 after 5 days late and $5 each additional days.
Now I'd like to start charging $50 on 2nd day, and $5 additional each day late. Rent is $650-1000. Is that way too much? I would appreciate your help. I want rent on time, but I don't want to over charge either..
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Re: Late Fee -How much do you charge? by MFO (PA) on March 25, 2009 @12:44 [ Reply ]
I give a $25 early payment credit if rent is paid 5 days early.

$50 late fee if paid after the 5th. No per day fee, if its more that 5 days late I will start evicting.

Though I am interested in what others charge as well!

Re: Late Fee -How much do you charge? by Laurie (CA) on March 25, 2009 @13:41 [ Reply ]
I charge a 10% late fee once rent is 5 days late. Rent is $1750.00 a month so the late fee is $175.00
Re: Late Fee -How much do you charge? by Jack (NY) on March 25, 2009 @13:42 [ Reply ]
My late fees are usually 10% of the rent or if the rental is over $1000, the initial late fee if not paid by the 5th would be a flat $100. with a $20. per day daily late fee after the 7th.
If the rental is over $2,000., I make the initial $200.
Re: Late Fee -How much do you charge? by Anonymous on March 25, 2009 @14:04 [ Reply ]
I charge a flat late fee of $65.00 on the second day. This is 7% of the rent.
Re: Late Fee -How much do you charge? by M-bone on March 25, 2009 @14:20 [ Reply ]
For starters, do not give any grace period. My late fees are $50.00 - $75.00 and $100.00 depending on the rent amount. It's approx. 10%. Late fees apply the minute rent is late, no exceptions. I do not charge daily late fees. If rent is one day past due without a phone call from the tenant explaining it, I will post a 3 day notice on their door the day after rent is due if I have not heard from them. I charge a fee for this, either $50.00 or $75.00 depending on how far I must drive to give them the notice, this is in my lease. If tenant calls to say they will be late, I want a date and time when they will deliver it in person - rent mailed late is not permitted. I will only allow a few days usually not more than 5 days before I give a 3 day notice if they can't pay their rent by then. I make this all VERY clear to all my tenants up front when signing the lease, so they know that I run a tight ship, and there is no room for them to try to manipulate me later on.
Re: Late Fee -How much do you charge? by Laura (PA) on March 25, 2009 @14:21 [ Reply ]
I also charge 10% of the rent. Im not sure a daily fee is allowed in my county, but that 10% usually lights a fire under them to pay on time.
Re: Late Fee -How much do you charge? by Rich (NJ) on March 25, 2009 @14:51 [ Reply ]
People really need to check with the laws in "their" area and also what would stand up in court if needed.

Where I live in NJ you must allow "5 business days" grace for the rent before issuing a notice. Also late fees usually need to be around or under 10% of the rent.

Also if ever going to court and you come in with hundreds of dollars in late fees, you will not get them and the judge would probably rule against you on other issues just due to the outrageous fees.

Re: Late Fee -How much do you charge? by Brad (IN) on March 25, 2009 @18:50 [ Reply ]
No grace period. 5% for the first day late. 1% for each additional day.

Don't worry about overcharging. Let them worry about it. If they don't want to be overcharged, they can pay the rent on time. Not your fault if they end up getting "overcharged". Make sure it's reasonable in the courts eyes though.

Re: Late Fee -How much do you charge? by T-bone on March 25, 2009 @19:16 [ Reply ]
Rent is $675. Late fee is $35 starting the 3rd day of the month and $5 per day after that.
Re: Late Fee -How much do you charge? by CA (HI) on March 26, 2009 @01:32 [ Reply ]
Early payment discount if 5 days early = $50
No grace period
$10/day
$100 after day 5 and still $10/day thereafter.
This is close to the late fees if mortgage is late.

Re: Late Fee -How much do you charge? by mlc (NJ) on June 20, 2010 @13:39 [ Reply ]
You really need to check the laws and Truth-In-Renting regulations in your state. Some states don't permit higher than 6% of the rental amount, some states don't permit more than $1.00 a day not to exceed $30. First and foremost you must allow a grace period of 5 business days. Every financial transaction must allow a grace period, unless your particular state says otherwise, but honestly I have never come across a non-grace period yet.

$50 a day on the 2nd day? Good luck with that.

Especially in today's economy with people lose jobs, loss of income for other reasons.....if the tenant can't pay their rent, and to charge excessive additional late fees on top of it.....do you really think they're going to ever be able to catch up? Think about it. And using excessive late fees as a scare tactic might sound like a nice plan for you......but if I ever saw a $50 or $100 late fee on the 2nd day it would tell me alot about the landlord I was about to rent from and surely look elsewhere. Landlords can not charge whatever they want for late fees. If you can legitimately prove, in court, the amount of financial loss you incurred due to the late rent then you can charge that loss. If you incurred no monetary loss....guess who the judge will side with?

Now if you have a habitual late payer, you should consider not renewing or moving them out. But be careful with that too because in this financial climate it's not unusual to see rental properties go vacant for months and months. Do the math on that.

I try not to make it so one-sided from our own perspective. I find working with tenants (within reason) usually is the best way to go. Bi-weekly payments or temporarily reducing the rent a bit works to save a tenant and they usually step up to the plate. However, a dead-beat habitual late payer....they need to go. Sometimes they'll even surprise you......talking to them face-to-face and putting them on "notice" sometimes turns them around into a timely rent payer.

Trying to figure out how much you can jack them for when they're late.....just doesn't work and pisses everybody off. And if it makes it to court, most of the time the judge will give the benefit of the doubt to the tenant. So then where are you? Lots of hassle and aggravation and no additional late fees.

Speaking from experience......try to work with them first. If that doesn't work, cut your losses and cut 'em loose.

Re: Late Fee -How much do you charge? by r deininger (nj) on September 29, 2011 @13:21 [ Reply ]
i would be dam mad if i had to pay late fees,the way things are their lucky they have tenantd,and here in these apartments ,their falling aparrt and little is done to repair them,IO have lived here 42 years,and there was a time 100 people were on lists to get in here,now its section 8's and worse.......
Re: Late Fee -How much do you charge? by Anonymous on March 30, 2013 @11:12 [ Reply ]
Not sure why landlords are the only people that charge late fees the day after rent is due. No other utility or bank or mortgage company do this as far as I know. Just would like to know why landlords are allowed. Especially since they already have a months advance on rent to use.

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