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LPA Lease Late Fee Clause - Landlord Forum thread 357793








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LPA Lease Late Fee Clause by Josephine (NV) on June 19, 2018 @11:10

                              
I have been a landlord for many years of 3 houses and I never charged my tenants a late fee. Yess they are always late but I usually get the rent after many calls and threats.
I like this late fee clause BUT is this late fee enforceable? How do you enforce this?
What if they don't even respond when you tell them to pay the fee? Is it better to start with new tenants? Is there a limit to how much I can charge? What date should I make the late fee due?
Thank you.
[ Reply ] [ Return to forum ]

Re: LPA Lease Late Fee Clause by Garry (Iowa) on June 19, 2018 @12:59 [ Reply ]
Some states address late fees in their LL/T laws, and others don't. First, check Nevada's codes to be sure you are within the law. As far as enforcement, you should have it in your lease that late fees are collected FIRST, before any rent is accepted by you----so, either on-the-spot when they pay rent for a current month, or the next month, when they come to pay rent. That may also leave them owing a small amount (say $40) for rent, of which you possibly could give them a 3 day notice to pay or quit, if they didn't bring enough money along to pay both rent and late fee.
Re: LPA Lease Late Fee Clause by Anonymous on June 19, 2018 @15:43 [ Reply ]
There does not appear to be any statutes regulating late fees for Nevada (at least from what I could find).

We don't do late fees. We do Prompt Payment Discounts. The lease reflects the full price of the rental, but if the rent for the month is paid on time, we deduct $25.00 from the rent. The distinction between 'late fees' and 'discount' is a minor one, but it means that everything is considered to be rent. We generally forgive the first offense, but stick to our guns on the ones that happen after.

As far as enforcing it, check to see if you can charge interest on unpaid amounts. We charge 18% annually. I don't know if Nevada allows for it. Other than sending a statement asking tenants to pay their balance, the only other option you have is to send then a pay or vacate notice. It may sound heavy handed, but there really are very few choices...but keep in mind that if you send a notice to pay or vacate, you should be prepared to start the eviction or the notice will not have any meaning the next time.

As far as how much can you charge, 5% of the monthly rent is considered a reasonable late fee. You can try to charge whatever amount you want, but if you have to go to court, unreasonable amounts could be tossed out by the judge. If you really want the late fee to have impact, put it at $50.00.

Of course, whatever you decide to do needs to be written into a lease.
Re: LPA Lease Late Fee Clause by Lacey on June 19, 2018 @16:15 [ Reply ]
Check you state limits at https://www.thelpa.com/lpa/forms/state-lease.html

You may also be interested in the LPA article about Late Fees:


Charging Late Fees
The LPA LEASE CLAUSE # 3, Late Fees
https://www.thelpa.com/lpa/tips/latefees.html
Re: LPA Lease Late Fee Clause by Jack Klein (NY) on June 24, 2018 @23:50 [ Reply ]
The late fee is enforceable as long as it is written in your lease.
You send them a late notice with late fee due after they've gone past the late date.


>Is it better to start with new tenants?

If you have bad tenants, it is always better to start with new tenants.

>Is there a limit to how much I can charge?

Yes. Even states with no limit are limited by what a judge decides if it is ever challenged. Check your state limits at https://www.thelpa.com/lpa/forms/state-lease.html

>What date should I make the late fee due?

I make the fee due if rent is not paid by the 5th of the month.

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