What is reasonable Late Fee in GA if rent per month is $1000.

Is it 10% flat per week?

Is it $25 per day?

Is there a cap?

I have no idea if GA imposes a cap on late fees, or if GA in fact imposes any restrictions at all on late fees, but neither 10% per week nor $25 per day are reasonable.

10% ($100) per week works out to be 520% per annum, not including compounding. $25 per day is over 900%. Courts in most states use a legal interest rate for unpaid judgements of 10% per annum.

In NC, it's 5% or $15, whichever is more. Imposed only once per month, and you can't deduct late fees from NEXT month's rent, thus making that rent late too.

So the goal in NC is to not abide deadbeats because you can only get about 50 bucks out of them, max.

Alex,

My judge taught our association that a late fee should "encourage payment" not a penalty.

I see a flat fee encouraging payment by the due date, but we found they had no incentive to pay once they were late. After the flat fee hit, there was no reason to pay. The 29th was now the same as the 6th.

Our judge allows $5 per day and says it meets the "encourage to pay" standard.

He did agree with us that even $5 per day, or $150 /mo held little importance to a res who owes $1200/mo.

I also believe it is crucial for LLs to eliminate grace periods where the law allows.

I use progressive fees, for the same reasons BRAD listed.

$5/day on my cheap places (less than 500) and $10/day on the more expensive ones.

I've never had my late fees challenged in court, but I have collected enough to make them worth while.

The best part: my tenants have learned they don't want to be late...EVER.

My 8 tenants typically pay before the 1st, direct deposit.

Another piece of the puzzle: I allow a $25 discount for early payment.

Coincidentally, I'm not allowed to charge late fees until the 6th.

I just checked Illinois stat. and found this: I was surprised that 20% of rent is deemed reasonable. I am currently at a flat $25 and as others have noted once they incur the $25 they have no further incentive other than facing eviction to pay.

Our lease has a $100.00 discount if paid prior to the First, then after 5 days a $5.00 a day late fee kicks in.

Our Rent is $100 Higher than the security Deposit.

Most states have limit on interest charges, we feel our courts will allow our charges.,

I charge $55 first day they are late (on the 4th), and $15/day thereafter.

However, I also accept credit cards and charge a 3.5% fee, but enables them not to be late, which comes out cheaper than the late fee.

Learned this trick from a property manager.