Partial payment of late rent.... Keep late fees?

Partial payment of late rent.... Keep late fees? by Terri (NY) on May 23, 2016 @20:23

My tenant is late every single month (5-10 days) and sometimes she still only deposits part of the rent (late of course) and I have to contact her multiple times for the rest plus late fees. I charge $5/day for every day late. Can I keep charging her daily if she deposited a partial payment? We have no agreement about partial payments, they are deposited directly into my bank account. Thanks!

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Re: Partial payment of late rent.... Keep late fees? by Garry (Iowa) on May 23, 2016 @22:24	[ Reply ]

Yes, you do have an agreement to accept partial payments, but it's with the bank, not your T. You need to set it up with the bank so they can only take a full rent payment. Then all smaller amounts will be rejected by the bank. Then, on a certain date that you choose, you should issue the standard 3 day notice to pay or quit to your T. In other words, you need to "train" your T. Right now, it's the other way around----your T has trained YOU to accept partial payments, and for you to keep calling them if you want your late fees.

Re: Partial payment of late rent.... Keep late fees? by AnonymousFL on May 24, 2016 @04:03	[ Reply ]

If the rent is $1000.00 and they pay 800.00, then the rent is not paid, is it? Late fees are supposed to be an incentive to pay on time. The softer you are in using your late fees, the less meaning they will have. It is one thing to forgive a late fee the first time or if there is an emergency of some kind. However, it's not like they don't know rent will be due at the start of the month.

Re: Partial payment of late rent.... Keep late fees? by Mikey (MI) on May 24, 2016 @07:48	[ Reply ]

I had similar problem with the last tenant. They were late every month for 18 months. Basically I sent 7 day notice for pay or quit. That usually made them move... And if they do violate, you will have to the court and start the eviction process. Follow up with action. For the late fee.... Although it is in your contract, be reasonable. If you charge $5/day for weeks on, judge may see that as ripping off the tenant. I had $10/day, but I stopped around 10% fee. BTW, this tenant now owes me several thousand dollars. So, start the eviction else you will have months of un-paid rent eventually. Lessons learned...

Re: Partial payment of late rent.... Keep late fees? by Stephen (WA - Washington) on May 24, 2016 @14:02	[ Reply ]

I have issues with allowing a tenant access to my business bank account. As I use Chase Bank, one of the options I offer is paying though their Chase QuickPay (other banks/credit unions have similar systems). Their system requires only one of you to have a Chase account. It allows the sender to send funds from their bank account or a credit card. I get notified and have to accept the funds for them to go into my account. I like this for two reasons. 1. Neither of us has the other party's bank info. They use my email address to designate who it is going to. 2. I have to accept the payment for it to post so there are no partial payments snuck in.

Partial payment of late rent.... Keep late fees? - Landlord Forum thread 345141