Re: Does Colorado have a limit on Late Fees? - Landlord Forum thread 342103

Re: Does Colorado have a limit on Late Fees? by Anonymous on January 8, 2016 @11:26

So the landlord CAN charge $10/day when the rent is $1,000/month, assuming the landlord does not allow the cumulative annual amount charged to exceed 45% of the total amount of rent collected. Since $10/day ($300/month) is 30% of the $1000/month, a landlord can charge this each and every month if the tenant is late and still not exceed the 45% limit. Because, of course, you don't keep charging late fees past the end of a particular month -- you get evict the tenant for non-payment well before you get to the end of the month! And even if you don't evict, I would assume that the late fee stops for January and resets for February when the month rolls over. So if a tenant doesn't pay January rent until February 15, you aren't continuing the January late fee through February 15, you are stopping it at the end of January and if you aren't smart enough to have started an eviction proceeding, you shelve the late fee for January and then start charging the late fee for February on February's unpaid rent.

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Re: Does Colorado have a limit on Late Fees? by Tom on January 10, 2016 @12:48	[ Reply ]

No, it's not 30%, but 360% ARP which would be illegal.

Re: Does Colorado have a limit on Late Fees? by Anonymous on January 12, 2016 @12:11	[ Reply ]

How does $300 interest on $1000 rent become 360% annually? It's only 30%. In annual figures, it would be $3600 on $12000 -- still only 30%...? What do I not understand in your calculation?